Idea Cellular gets notice from DOT for penalty of Rs 600 crores

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Idea lgets notice from DOT for penalty of Rs 600 crores
Idea Cellular: Quotes, News
BSE 76.30BSE Quote1.9 (2.49%)
NSE 76.05NSE Quote2.15 (2.83%)
Idea Cellular Limited has said that the company has received a communication from Department of Telecommunication, Ministry of Communications & IT, on imposition of financial penalty of sum of Rs. 600 crores (Rupees Six Hundred Crores) for alleged violation of terms and conditions of CMTS /UAS licenses while acquiring erstwhile Spice Communications Limited.

It may be recalled that the erstwhile Spice Communications Limited (Spice) was amalgamated with Idea effective March 01, 2010, after approval of Company Merger by Gujarat High Court on 26.11.2009. and Delhi High Court on 05.02.2010.

Subsequently, in the matter of transfer of Telecom CMTS / UASL licenses held by Spice to Idea, the Division Bench of Honourable Delhi High Court vide its order passed on July 13, 2012 had directed DoT to give its final decision on transfer of operational Spice licenses of Punjab & Karnataka in the name of Idea.

Now, vide the latest communication received from the Department of Telecommunications received on the weekend, letter dated November 29, 2013, the DoT has written that the Department is prepared to take the merger of companies i.e. M/s. Spice Communications Limited with Idea Cellular Limited on record and change the name of two Spice UAS licenses of Punjab & Karnataka Service Areas subject to Idea paying financial penalty of Rs. 600 crores besides other list of compliances within next 15 days.

The company has said that it is taking necessary steps to challenge the DOT order at an appropriate forum.

Shares of Idea were trading marginally lower following at Rs 175 on the National Stock Exchange.

Read more about: dot, idea cellular
Story first published: Tuesday, December 3, 2013, 11:01 [IST]
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