Telecom tribunal TDSAT has allowed petitions by Idea Cellular against the DoT imposing Rs 300 crore penalty on the company for allegedly holding more than 10 per cent stake in two firms in six circles.

"... these petitions are allowed. The respondent (government) is directed to exercise its discretion and pass a fresh order upon complying with the principles of natural justice," TDSAT said.

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) said that DoT had imposed a maximum penalty of Rs 50 crore for each circle and it should give some reasoning for reaching such conclusion.

Idea has a batch of petitions challenging Rs 300 crore penalty imposed on February 24, 2011, on Spice Communication.

UASL Guidelines prohibits a mobile phone company from holding more than 10 per cent stake in two telcos operating in the same regions, said DoT.

Spice had licences for Haryana, Punjab, Andhra Pradesh, Karnataka, and Delhi circles and Idea had obtained licences for the same. Later, Spice had merged with Idea.