Call drop levy: HC upholds Trai order

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New Delhi | Published: March 1, 2016 1:14 AM

In a major setback to telecom companies, the Delhi High Court on Monday upheld the Trai regulation that mandated them to pay subscribers Rs 1 for every call drop...

In a major setback to telecom companies, the Delhi High Court on Monday upheld the Trai regulation that mandated them to pay subscribers Rs 1 for every call drop they experience on their network, subject to a cap of three call drops a day, starting January 1, 2016. While dismissing the petition filed by two industry bodies — Cellular Operators Association of India and Association of Unified Telecom Service Providers of India — seeking quashing of the October 16 tariff order, the Division Bench headed by Chief Justice G Rohini clarified that since the order was not stayed during the pendency of proceedings, the telcos would have to compensate subscribers as per the terms of the regulator’s order.

“There is no dispute about the power of Trai to make regulation under section 36 of the (Trai) Act. The impugned regulation has been made in exercise of the power conferred under the Act, keeping in mind the paramount interest of the consumer,” the bench observed.

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