New 2G mobile operators got a ray of hope with the Telecom Dispute Settlement Appellate Tribunal (TDSAT) setting aside all penalties imposed by the Department of Telecom for failing to meet roll out obligation.

The tribunal also asked DoT to refund the money collected so far with 12 per cent interest within four weeks. The department had collected nearly Rs 350 crore from various operators who had received licences in 2008. This inlcudes Etisalat DB, Loop, Videocon and Uninor.

The TDSAT Bench headed by Mr Justice S.B. Sinha said that the DoT did not follow “principles of natural justice” and did not give any opportunity to the telecom operators to present their case before imposing penalty or liquidated damages.

The operators had filed as many as 70 petitions challenging liquidated damages imposed on them by the DoT for various circles.

The tribunal directed the DoT to give a fresh hearing to the telecom operators on this issue in accordance with today’s judgment. The tribunal further said that if there was any ambiguity in the terms of licence, the benefit has to be given in favour of licensee (operator).

Earlier, passing an interim order in this matter, the tribunal had directed various telecom operators to deposit 60 per cent of the liquidated damages imposed by the DoT.

The DoT had imposed penalty on the operators after the telecom regulator gave a recommendation that they had missed roll-out obligation. The TRAI had even suggested cancelling the licences of some of these players. The DoT has already issued show cause notice in this regard. Most of the new players have not even started offering full-fledged services due to the legal issues. Today's TDSAT ruling is probably the first breather they have got ever since the Government started investigating the 2G scam.

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