No penalty on telcos till reasonable procedure evolved: Sibal

No more penalties will be levied on telecom operators tillreasonable procedure is evolved, Telecom Minister Kapil Sibal has said, a movethat will give big relief to the industry.

"I have passed an order that no fine will be imposedhenceforth till such a time we evolve reasonable procedures for imposition offine. If the government fines Rs 50 crore, then people will go to court,nothing comes to the government, not useful for anybody," he said at anaward function.

Sibal had asked the Department of Telecom (DoT) to evolveguidelines to reduce the element of its discretion while deciding penalty forviolation of licence conditions and make the process as scientific as possible.

As of now, the DoT has been levying maximum penalty of up toRs 50 crore for all cases of violations of licence conditions.

Sibal said irrespective of whether penalty was imposed ornot, there would be complaints filed against the Department.

"...If somebody does not impose penalty...complaintwill be filed where they will say look you have been bought over by such andsuch person...When files come to me, if I reduce penalty, then complaint willbe filed that the Minister has been bought," he said.

"So in this environment, don't blame the governmentalone ...there is an environment of suspicion...in that context it is difficultfor a bureaucrat to deliver," he added.

Sibal's reply came in response to telecom czar SunilMittal's question asking the government to take a balanced view of maximisingrevenues and industry's well-being.

"...My department has the right to impose penalty andit goes from Rs 0 to Rs 50 crore. It is always Rs 50 crore...I have written toofficials in my ministry to decide, write reason for record, why penalty shouldbe Rs 50 crore" Sibal said at the function in Mumbai.

"And therefore, you must evolve guidelines to decidewhat the penalty should be for violation of rules.... Let the government evolvethe guidelines," he added.

The Minister had earlier said "mindless imposition ofmaximum penalty in each particular case would send a wrong message to theindustry and dampen the fragile environment".

It would be needless litigation and delay in realisation ofpenalty, the minister had said.