TDSAT tells DoT to return Loop bank guarantee

Telecom tribunal TDSAT has directed the government to return the financial bank Guarantee [FBG] submitted by the Loop Telecom in 2006 for its NLD licence and asked it to pay Rs 50,000 as litigation cost to the operator.

The Department of Telecommunications [DoT] had ordered Loop Telecom to clear due spectrum charges of one of its sister firms, Loop Mobile India, as a precondition of surrender and release of FBG of its National Long Distance [NLD] licence.

The Telecom Disputes Settlement and Appellate Tribunal was of view that DoT cannot go beyond its licence conditions by asking Loop Telecom to pay the dues of another UASL license holder, Loop Mobile.

'The licensor [DoT] cannot go beyond the terms of the license to claim a sum payable by another licensee [Loop Mobile] by way of pre-condition to accept the offer of surrender made by the licensee [Loop Telecom].

It further said: 'DoT shall also pay and bear the costs of this petition to the Loop Telecom. Advocate's fees assessed at Rs 50,000.'

On Tuesday, TDSAT had directed DoT to release half of the Rs 540 crore FBG submitted by Loop for allotment of spectrum for 21 circles.

Loop was granted a NLD licence in 2006.