Telecom tribunal TDSAT has directed Sistema Shyam Teleservices to deposit Rs 22.65 crore additional liquidated damages imposed on them by the government for delaying roll-out obligations in five circles.
Passing an order on the plea of Sistema Shyam Teleservices (SSTL), Telecom Disputes Settlement and Appellate Tribunal (TDSAT) directed the operator to the additional liquidated damage by submitting performance bank guarantee (PBG) of equal amount.
The Rs 22.65 crore PBG consists of - Rs 3.45 crore for UP (East), Rs 5.05 crore for UP(West), Rs 6.05 crore for Punjab, Rs 5.85 crore for Himachal Pradesh and Rs 2.25 crore for Gujarat.
The TDSAT's direction came over an application moved by SSTL against a letter of Department of Telecom (DoT) to invoke the PBG submitted by it earlier.
SSTL has contended that despite completing the roll-out obligations, the DoT failed to return PBG for eight circles - Haryana, UP (East), UP (West), Punjab, Himachal Pradesh, Tamil Nadu, Maharashtra, and Gujarat.
However, DoT had refuted it before the TDSAT in its reply saying that roll out obligations was not done by SSTL, hence, the question of return does not arise.
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The DoT had not raised additional penalty for Haryana, Tamil Nadu and Maharashtra circles.
As per licences terms, a operator has to comply with its roll-out obligations in two phases. In the first phase, 10% of the circle area should be covered within a year from the date of allocation of spectrum and 50% within a period of 3 years, failing which penalty is imposed.
SSTL, a joint venture between the Sistema of Russia and India's Shyam Group, offers mobile and data services under the MTS brand. The JV has a licence for 23 circles and Sistema owns 56.68% in SSTL.
The TDSAT was of view that SSTL should pay the PBG to DoT in "the interest of justice".
"We have passed this order keeping in view the fact that in the other matters additional demands were not made and are governed by the orders already passed by us in the concerned cases. Subject to the aforementioned the Bank Guarantees may be released, within two weeks," said the TDSAT bench headed by Chairman Justice S B Sinha.