Telecom service provider Idea Cellular got a breather from hefty fine after a telecom tribunal on Tuesday restrained the department of telecom (DoT) from imposing penalty on the Aditya Birla Group firm. The Telecom Disputes Settlement & Appellate Tribunal (TDSAT), a quasi-judicial body that solves disputes in the telecom sector, on Tuesday asked DoT not to impose Rs250 crore penalty on Idea Cellular for holding overlapping mobile permits in five telecom circles.

Idea Cellular holds overlapping mobile permits in six circles after its acquisition of Spice Communications in October 2008. Tribunal chairman Justice SB Sinha on Tuesday passed the interim order pointing out that there was a prima facie case. While passing the order in Idea Cellular's favour, the tribunal added that the telco was not a fly-by-night operator.

"We are of the opinion, that the petitioner not being a 'fly by night' company and a huge amount having been imposed on it by way of penalty, in the event, an interim order is passed in favour of the petitioner restraining respondent from enforcing its demand, no prejudice would be caused to it," the order said. The tribunal's interim order came on Idea Cellular's plea against a demand notice issued by DoT last month. Previously, DoT had imposed Rs50 crore fine for violating licence conditions in the Punjab circle, which was also stopped till further notice by the tribunal.

In a statement on Tuesday, Idea Cellular announced that the TDSAT had passed an order in its favour, stopping DoT from puttingRs250 crore fine. "The designated tribunal for all telecom sector disputes has restrained DoT from enforcing the penalty of Rs250 crore imposed on Idea for 5 overlapping licenses," the statement said.

Idea acquired Spice Communications that had permits to operate in six regions - Punjab, Karnataka, Andhra Pradesh, Delhi, Haryana and Maharashtra, but actually offered services only in Punjab and Karnataka. The telco merged these two with itself as it did not have mobile services in these circles, but did not use Spice's licences in the other four regions where it was already present. Idea Cellular did not use its own licences and airwaves allotted for Punjab and Karnataka because it had integrated Spice's mobile operations in these regions with itself.

The Aditya Birla Group firm had applied for these permits prior to its deal with Spice. Recently, the telecoms department issued cancellation notices to Idea for holding overlapping licences in the same circles as well as failure to roll out services in the circles where it held dual permits. Idea Cellular's scrips closed 2.16% lower at Rs77 on the Bombay Stock Exchange on Tuesday. It had touched an intra-day high of Rs77.25 and an intra-day low of Rs75 earlier in the day. (ET)