The Telecom Dispute Settlement Appellate Tribunal (TDSAT) has dismissed the penalties imposed by the Department of Telecommunications (DoT) on new players for failing to meet roll out obligations.

The tribunal has also asked DoT to refund the money collected so far with 12 per cent interest within four weeks.

DoT has collected nearly Rs 3.50 billion from various operators who had received licences in 2008, including Etisalat DB, Loop, Videocon and Uninor.

The TDSAT Bench said that the DoT did not follow the ?principles of natural justice? and did not provide the operators with an opportunity to present their case before imposing penalty or liquidated damages.

Meanwhile, the operators had filed 70 petitions challenging liquidated damages imposed on them by DoT for various circles.

The tribunal has directed DoT to hear the cases afresh and added that in case of any ambiguity in the terms of the licence, the benefit has to be given in favour of the licensee (operator).