HC dismisses Airtel plea against tribunal order to pay Rs 25cr

DoT imposed Rs 50 crore fine on Airtel for issuing SIM cards in bulk to two firms, allegedly violating security conditions

PTI | October 28, 2011



The Delhi High Court has dismissed Bharti Airtel's plea against telecom tribunal TDSAT that asked it to first pay half the Rs 50 crore fine imposed on it by DoT before the hearing.

The Department of Telecom (DoT) had imposed Rs 50 crore fine on the country's largest telecom operator for issuing SIM cards in bulk to two firms for distribution among foreigners and NRIs, allegedly violating security conditions in the licence agreement.

As Bharti Airtel moved Telecom Disputes Settlement and Appellate Tribunal (TDSAT) early this month against the DoT order, the tribunal asked it to first pay half of the penalty for being heard.

Bharti Airtel then approached the Delhi High Court, which too rejected its plea with the bench of Justice Vipin Sanghi asking it to pursue the case before the tribunal itself.

Former Solicitor General Gopal Subramaniam, appearing for the private operator, contended that the tribunal was not right in directing it to pay half the fine, as it had noted in the order that DoT had not given any reason for imposing the penalty.

Bharti Airtel also contended that it had only issued SIM cards/connections in bulk, and it had already terminated the rental agreements or contracts for them 19 months before the demand of penalty by DoT.

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