TDSAT quashes Rs 63-cr fine on Reliance Communication

Written by fe Bureau | New Delhi | Updated: Jul 3 2014, 16:14pm hrs
RComSubscribers are required to complete the CAFs. Reuters
In a relief for Reliance Communications, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on Wednesday quashed a penalty of Rs 63 crore levied on the company by the DoT for failing to comply with the licence clauses on subscriber verification and for not supplying Customer Acquisition Form (CAF).

Subscribers are required to complete the CAFs.

They are also directed to submit the proof of identity as well as proof of address, for which certain documents specified by the DoT are to be provided.

Telecom companies are required to follow guidelines being issued in this regard and any violation of these guidelines is penalised by cells set up under DoT in various license areas.

Earlier in November 2011, DoT had imposed penalties on the company on the ground that it had failed to supply CAFs from July 2011 to November 2011.

During the arguments, the company contented that it had failed to produce the relevant CAFs as they had been stored in an independent, external warehouse and some dispute had arisen between RCom and the warehouse owner.

The company added that the warehouse owner had approached a Bangalore city court and had secured an interim, ex-parte restrain order against it from accessing these documents.

The company argued before the tribunal that as it was unable to supply all the CAFs to the TERM cell, it had made representations to the DoT to extend the time for submission of the documents.

DoT, however, dismissed its representations and imposed penalties by demand notices dated November 9, 2011 and November 17, 2011. Subsequently the company had approached the tribunal for relief.