TDSAT denies Vi interim relief in pre-activated sim sale case

Telecom tribunal TDSAT has denied any immediate interim relief to debt-ridden telecom company Vodafone Idea in a matter related to the penalty imposed by the Department of Telecom for selling pre-activated SIM cards.

The Department of Telecom (DoT) has imposed a penalty of Rs 1.9 crore on VIL and will seize bank guarantee of the company if it fails to make the payment this week.

”We cannot give you a stay. You deposit the money. If you succeed, it will be refunded within a week,” TDSAT bench headed by Justice Dhirubhai Naranbhai Patel said.

The matter pertains to pre-activated SIMs allegedly being sold by a VIL retail partner in east UP. The UP police raided the premise of the retail partner on March 11, 2020, and discovered pre-activated SIM cards of the company.

The DoT issued a show cause notice to the company on March 24, 2020, and later a demand notice of Rs 1.9 crore on the basis of Rs 50,000 penalty per SIM card.

The VIL counsel said that the DoT will encash the bank guarantee of the company if it doesn’t pay the penalty and requested relief at least till the time of next hearing.

While denying any relief, the TDSAT adjourned the matter to March 22. PTI