Tata Teleservices has received penalty orders for Rs 3.8 crore from the Department of Telecommunications, Maharashtra. The company is penalised for violating subscriber verification norms.
In an exchange filing, Tata Teleservices said that it has received two notices for Rs 3,40,28,600 and Rs 41,00,000. While the first order pertains to the period from April 2007 to April 2012, the second notice is for March 2010.
Why is the penalty imposed
According to the regulations of the Department of Telecommunications, every telecom company is required to ensure adequate verification of the customers before enrolling. If a telecom company fails to comply with the rules, DoT can impose a penalty, ranging from Rs 1000 to Rs 50000 per lapse.
According to the DoT Maharashtra’s penalty order, Tata Teleservices violated the verification norms. This order pertains to the violations in the Maharashtra License Service Area of the Department of Telecommunications.
What next
Tata Teleservices has a few options other than paying the penalty amount. First, it can appeal before the DoT to present its justification or reconsideration. If DoT rejects the appeal, the company can go to the Telecom Disputes Settlement and Appellate Tribunal (TDSAT). If the matter is not resolved in TDSAT, the company can go High Court or the Supreme Court.
Tata Teleservices said that it is currently evaluating the penalty order as well as its next course of action. Furthermore, the company said that the maximum impact of the penalty order on the company is limited to the levied amount only.
Penalty on Airtel
This is the second time that the DoT has levied a penalty on a telecom company for subscriber verification. Earlier on June 10, DoT penalised Bharti Airtel for Rs 101000 for the same reasons. While Tata Teleservices is yet to decide whether it will challenge the order or pay the penalty, Airtel decided to pay the penalty.