The Hindu Business Line : Another DoT notice to Reliance on ILD issue

THE Department of Telecom may issue a show cause notice to Reliance Infocomm in the next two days asking it to explain as to why a penalty should not be imposed on the company for allegedly routing international calls as local calls.

The DoT is likely to impose a penalty of Rs 50 crore for every circle where a violation has been detected.

DoT has also sought the opinion of the Law Ministry. This is the second notice being sent to Reliance Infocomm after DoT had earlier asked the company to stop all services that were leading to violation of the licence condition.

Meanwhile, Bharat Sanchar Nigam Ltd (BSNL) has moved the Supreme Court seeking an injunction against the Delhi High Court order, which stopped the public sector company from taking any action against Reliance for the alleged violation. BSNL was the first to blow the whistle on Reliance after it discovered that the private operator was bringing international long distance calls as if it were local calls. This was resulting in huge loss to BSNL as Reliance was avoiding payment of Access Deficit Charges. BSNL had threatened to disconnect Reliance if the company failed to pay up for the loss incurred by the State-owned company.

The matter was taken to the Delhi High Court, which directed BSNL to maintain a status quo even as Reliance was ordered to pay Rs 40 crore as an interim arrangement.

The other state-owned company Mahanagar Telephone Nigam Ltd had also made similar allegations against Reliance Infocomm.

The PSU had also sought a payment of Rs 350 crore for non-payment of ADC. Other private operators have also been asked to monitor their network to detect any violation.

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