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2G services: DoT asks Idea, Spice to pay Rs 27 cr penalty

2G services: DoT asks Idea, Spice to pay Rs 27 cr penalty

Idea Cellular has been served notice for missing the rollout obligation in Karnataka and Punjab, while Spice has been penalised for Haryana, Andhra Pradesh and Maharashtra circles.

The Department of Telecommunications (DoT) has asked Idea Cellular and Spice Communications to pay total penalty of Rs 27.65 crore by the second week of May for delay in rollout of 2G services in five circles.

Idea Cellular has been served notice for missing the rollout obligation in Karnataka and Punjab service areas, whereas Spice Communications has been served notice for Haryana, Andhra Pradesh and Maharashtra circle.

In the notice, Idea and Spice have been asked to pay Rs 7 crore each for delay of over 52 weeks in Karnataka and Andhra Pradesh circles.

For Punjab circle, Idea has been asked to pay Rs 4.55 crore liquidated damages for delay in meeting rollout obligation by 39 weeks. Spice Communications has been asked to pay similar amount for a 39-week delay in Haryana and Maharashtra circles.

The notice was issued on April 21 and both the companies have been asked to pay the liquidated damages within 15 days from the issuance of the notice. When contacted, Idea Cellular spokesperson declined to comment.

Published on: Apr 26, 2011, 3:34 PM IST
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