DOT SLAPS RS 150 CR FINE ON RELIANCE
Not satisfied with Reliance's reponse to its show cause notice,
the department of telecommunications (DoT) sent a notice to
the company imposing a penalty of Rs 150 crore for violation
of licence conditions.
Reliance had passed international calls as local calls in
three circles.
In its response, Reliance said that it had not violated any
licence conditions. It has only introduced a new service,
called 'home direct service', that is offered by a large number
of operators abroad.
Nripendra Misra, secretary, DoT, confirmed that a notice
has been sent. However, he didn't give any details.
Earlier, BSNL and MTNL had imposed a penalty of Rs 250 crore
and Rs 309 crore, respectively, on the company for the same
offence. There is a provision for a fine of Rs 50 crore per
circle for violating licence conditions.
DoT officials found that Reliance had violated licence conditions
in three circles. Thus, the total fine on Reliance comes to
Rs 150 crore.
Though Reliance had submitted its reply to DoT's first show
cause notice on October 20, the DoT, after internal examination
of the reply and legal consultation, decided to impose the
penalty.
