Loop seeks refund of license fee along with interest
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Loop seeks refund of license fee along with interest

Last Updated: Thursday, February 23, 2012, 22:52
 
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Loop seeks refund of license fee along with interest
New Delhi: Loop Telecom, one of the several firms whose licence was cancelled by the Supreme Court early this month, has written to Prime Minister Manmohan Singh saying it will surrender the licence if the government refunds Rs 1,454 crore fee along with interest.

The company while seeking to highlight that interests of Indian companies too should be protected along with foreign firms', made the proposal to avoid litigation.

"We will surrender the licence, against the DoT making a refund of licence fee of Rs 1,454 crore with interest. All our performance and financial bank guarantees may be released," Managing Director and CEO Sandip Basu wrote to the Prime Minister on February 17.

He said Loop Telecom has made investment in excess of 3,500 crore in its business.

Holding the government responsible for cancellation of licence by the apex court, Basu said that Loop Telecom is entitled to refund of licence fee of Rs 1,454 crore,
compensation for additional investment already made till date (approximately Rs 2,000 crore) and compensation for loss of profits and damages of reputation.

Basu, however, said that Loop Telecom will not file a review petition or take any other proceedings for challenging the judgement of the Supreme Court that cancelled its licences.

He added that it will not seek any compensation of Rs 2,000 crore already made, damages on account of wrongful actions of the government/DoT.

"DoT and us would agree that neither party has any claim against each other and withdraw all allegations and counter allegations against each other. The Government/DoT would cooperate in filing a petition before the appropriate court for closing the criminal case," Basu said.

He has asked PM to take decision on his proposals before end of time limit for filing review petition.

"Since the limitation for filing the review petition is 30 days, a decision would be required prior to the end of the limitation period," Basu said.

Loop Telecom CEO said that government should protect investment made by Indians along in the same manner in which it is trying to protect investment made by foreign companies.

"We understand that the Government of India is considering to evolve a policy to protect the investments of the international investors...

"While this effort is required ... it also has to be ensured that a policy which is evolved by the Government is not only protecting the investments of foreign investors but also those of the Indian investors who have also invested under the very same government policy," Basu said.

The Supreme Court judgement that cancelled 122 2G licences included 21 licences that were allotted to company in 2008.

Loop Telecom had submitted to Apex Court on March 9, 2011 that it was not interested in profiteering from mispriced allocation of spectrum and had offered to return licenses issued and re-auctioned so as to establish a fair market price for the spectrum.

PTI



First Published: Thursday, February 23, 2012, 22:52


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