Annulled licences: Loop moves TDSAT for Rs4,700-crore compensation
30 May 2012
The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on Tuesday issued notices to the department of telecommunications (DoT) and the Telecom Regulatory Authority of India (TRAI) following a petition filed by Loop Telecom seeking compensation for losses incurred due to cancellation of telecom licences by the Supreme Court.
Loop Telecom has sought refund of the entry fee paid for acquiring telecom licences, release of performance bank guarantees and damages for tarnishing its reputation, reported to total over Rs4,700 crore, from the government, claiming it had to pay heavy price due to faulty issue of licences and policy flip-flops.
Loop has claimed it was entitled to ''restitution'' of all obligations performed by it under the licence conditions as the Supreme Court had held that the 122 licences issued in 2008 during former telecom minister A Raja's tenure had been cancelled because of the government's faulty first-come-first-served licensing policy.
Loop was granted licences in 21 circles in 2008, which were cancelled through the Supreme Court order on 2 February.
The TDSAT issued notices to the communications ministry and TRAI and has set 17 July as the next date of hearing.