Idea Cellular, India's third-biggest cellular carrier by revenue and users, plans to challenge a government notice asking for Rs 6 billion ($96 million) in penalties for allegedly violating rules when it acquired a smaller rival five years ago.
In a filing to the bourses, the telecom operator said it is preparing to challenge the government order.
In 2008,
Idea had agreed to buy smaller rival Spice Communications in a three-way deal that also gave Malaysia's Axiata about a fifth of Idea.
The telecom ministry has said Idea violated rules as it held permits in zones where Spice had operations. Indian rules then prohibited companies
to own 10 per cent or more in a competing carrier in the same zone.
The telecom operator on its part has denied any wrongdoing and has said the merger was approved by courts. It currently runs Spice operations in two zones as part its own operations.
Idea Cellular's shares largely ignored the news and were trading about 0.4 per cent lower in morning trade.
(Photo for representational purpose only) 
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