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DoT to be scientific while imposing penalty on telecom operators: Sibal

04 Aug 2011 Evaluate

Telecom Minister Kapil Sibal has asked Department of Telecom (DoT) to evolve its rules to reduce the element of its discretion while deciding penalty for violation of licence conditions and make the process as scientific as possible. Till date, DoT has been charging maximum fine of Rs 50 crore for all cases of violation of license norms. In a communication to DoT Secretary R Chandrasekhar, Kapil Sibal said, the DoT should evolve guidelines to reduce the element of discretion and make the process of levying penalty 'as scientific as possible”. While there is no absolute yardstick for determining the quantum of penalty, some guidelines need to be evolved.

Citing the imposition of maximum fine would send wrong message to industry Sibal said, ‘If mindlessly the maximum penalty is imposed in each particular case, it would send a wrong message to the industry and dampen the fragile environment. It would be needless litigation and delay in realization of penalty.'

Advising DoT to impose penalty on the basis of nature of violation Kapil Sibal said, that it may be legal to impose the maximum penalty, but the fact that a penalty can be imposed up to Rs 50 crore itself requires the DoT to analysis the nature of violation and impose penalty commensurate with its gravity. “Not every violation should carry a penalty of Rs 50 crore” he added.

The telecom minister requested DoT to change its guideline wherever it is possible and bring element of certainty in the system, without detracting from the duty of department to charge fine where it deserves. Additionally, when an officer of DoT decides the extent of penalty to be charged, rationale for imposition of fine should be explained. 'The nature of the offence, its gravity and consequences must be factored while determining the quantum of penalty,' the letter added.

Telecom minister’s move comes in wake of controversy over the matter of charging fine in case of assumed violation of rural telephony by the telecom operators. It is understood that minister has asked DoT to submit guidelines in this regards by September 2011. Recently, a controversy had occurred in the case of Reliance Communication, which had turned off their towers in some of the rural areas disrupting services for long period in government’s subsidized rural telephony scheme. The motive of the licensee (operator) in violating a particular condition of the licence is also a relevant factor in determining the nature and extent of penalty, Sibal said.

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