Financial Daily from THE HINDU group of publications Saturday, Dec 25, 2004 |
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Info-Tech
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Telecommunications DoT asks Reliance to pay Rs 150 crore penalty immediately Our Bureau
New Delhi , Dec. 24 THE Department of Telecom (DoT) has slapped a Rs 150- crore penalty on Reliance Infocomm for violating international long distance licence norms by routing incoming international calls as local ones. The illegal routing has also resulted in evasion of payment of access deficit charges to Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL). Reliance has been asked to pay up the penalty immediately. The decision was taken after DoT sent two notices to the company seeking an explanation as to why the penalty should not be imposed on them. The company had contested DoT's charges on grounds that it was complying with all licence norms and the allegations were unfair. Sources in the company said that it was mulling its next course of action, which include contesting the DoT order in court. They said that a final decision would be taken soon. This is the second time that DoT has hauled up Reliance Infocomm. Earlier, the company was asked to pay a penalty of around Rs 500 crore for allowing roaming facility to its limited mobile subscribers through multiple registration. Reliance Infocomm has been accused of routing ILD calls into the country as if they were local calls. BSNL had filed its complaint with the Government that Reliance was avoiding payment of access deficit charges by illegally routing long distance calls. BSNL had also threatened to disconnect Reliance and sought dues of Rs 500 crore from the company. MTNL had also raised a demand of around Rs 300 crore from Reliance for similar violations. The matter was taken up by Reliance to the Delhi High Court, which ordered the PSU to maintain status quo. BSNL then filed a counter appeal in Supreme Court against the High Court order, which has directed the matter back to the High Court.
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