SC seeks DoT reply on plea against show cause to Loop

The Supreme Court on Monday issued notices to the Centre and others on a petition,questioning a show cause notice to Loop Telecom for opting to discontinue its operation in 21 circles.

A Bench led by Justice GS Singhvi sought a reply from the Department of Telecommunication DoT over allegedly threatening to impose Rs 1,100 crore penalty on Loop for its failure to fulfill its second year roll out obligation and hence violating the 2G spectrum licence norms. Following the quashing of its licences,the telecom company had discontinued its services by proceeding to shut down its operations after porting out all its subscribers and had preferred not to go for the fresh auction.

Senior advocate Harish Salve,appearing for the company,sought quashing of the DoTs November 22,2012,show cause notice,saying it was entitled to discontinue its operation under the quashed UASLs Unified Access Services Licences after the February 2 order. The Bench also permitted Sistema Shyam TeleServices to continue services in eight telecom circles in which it was the lone bidder for the 800 MHz spectrum.