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Govt To Issue Show Cause Notices To Erring Telcos

New Delhi, Nov 29: Facing allegations of massive financial irregularities in 2G spectrum allocation, the government today said show-cause notices will be issued for suppressing facts and also for missing roll-out obligations as per the

PTI [ Updated: November 29, 2010 22:59 IST ]
govt to issue show cause notices to erring telcos
govt to issue show cause notices to erring telcos

New Delhi, Nov 29: Facing allegations of massive financial irregularities in 2G spectrum allocation, the government today said show-cause notices will be issued for suppressing facts and also for missing roll-out obligations as per the terms and conditions of licence.


"... we believe that some of the companies might have suppressed facts, might have got an undue advantage in accessing licences," Telecom Minister Kapil Sibal told reporters.

Asked about the revenue loss to the exchequer by allotting spectrum at 2001 prices, as pointed out by the CAG, the Minister said, "The CAG has stated this. This is something which the Ministry will decide and we will apply our mind individually to each case."

The notices will be issued to 119 licencees of which 81 fall under both categories of ineligibility to get licences and 38 for not meeting roll-out obligations alone as spelt out in the licences, Sibal said.

He, however, declined to name the companies which would be issued show cause notices.

Sources said that among the new operators, the companies are Uninor, S Tel, Loop Telecom and Videocon.

The licencess would be given 60 days time to respond to show cause notices, Sibal said, adding each case would be dealt with separately.

"After studying their response, a decision will be taken on whether these (licences) need to be cancelled or a penalty should be imposed," the minister said. PTI
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