Vodafone challenges TRAI recommendation to impose fine on it

New Delhi: Vodafone on Friday moved Delhi High Court against Telecom Regulatory Authority of India (TRAI) recommendation to impose penalty of Rs 50 crore per licence area on it for not giving interconnectivity to Reliance Jio. Telecom major Vodafone called it an "arbitrary" decision.

TRAI has recommended imposition of a fine of Rs 50 crore for each of the 21 circles of Vodafone, except in Jammu and Kashmir, coming to a total of Rs 1050 crore.

TRAI's lawyers sought time till December 19 to take instructions on the steps taken by the authority after it issued a show cause notice to Vodafone on September 27 and therefore, Justice Sanjeev Sachdeva did not pass any orders.

Vodafone has claimed that the entire process adopted by TRAI was "arbitrary" as Reliance announced Jio offer on September 5-6 and had thereafter made payment for "augmentation of interconnection links" on September 25 after which there was a 90-day period to provide interconnectivity.

Senior advocate Meet Malhotra and central government standing counsel Kirtiman Singh, appearing for TRAI, sought time for instructions after the court asked how the September 30 meeting of TRAI with all operators was held before expiry of 10 days given to Vodafone to reply to the show cause notice.

"In these circumstances, how can even the findings be sustained," it asked and added that once a recommendation was made it could cloud judgement of decision-taking authority.

Vodafone, represented by senior advocate Rajiv Nayar, contended that it had time till December end this year for providing interconnectivity to Jio and even before expiry of the period it has provided 10,000 connections.

During arguments, Nayar said TRAI did not have the power to recommend imposition of penalty and it can only recommend revocation of licence for breach of licence conditions and sought setting aside of the recommendation.

He argued that TRAI has the power to impose "financial disincentives" for breach of Quality of Service regulations and to ensure compliance of terms and conditions of licence.

Vodafone has also said that no proper hearing was given to it by TRAI before issuance of recommendation of October 21.

The court will hear the matter again on December 21.

With PTI Inputs