The Department of Telcom's (DoT) power to impose penalty on operators
for not dully completing formalities of customer verification for
security purposes was upheld by tribunal Telecom Dispute Settlement
Appellate Tribunal's (TDSAT). While delivering its judgement a
two-member TDSAT bench stated that the matter related to the security of
the nation so far as conduct of telegraph is concerned, can be
implemented through conditions of licence.
TDSAT’s order followed a petition filed by the GSM lobby group
COAI and various operators challenging the penalty imposed by the DoT.
Operators had requested that the penalty regime introduced by DoT on 22
November 2006 be quashed as they felt that the penalty imposed by the
DoT 's TERM Cell in various circles as illegal, arbitrary and suffering
from procedural impropriety. Operators claimed that imposition of the
Scheme of Financial Penalty for Violation of Terms and Conditions of the
Licence Agreement for Subscriber Verification Failure Cases imposed by
DoT was not countenanced under the terms of the licences.
TDSAT in response mentioned that the circular letters issued by
the Respondent (DoT) for the aforementioned reason were not illegal or
invalid. Also operators cannot be permitted to question the validity of
those circular letters which have been issued three years prior to the
date of filing of the petition being barred under law of Limitation as
well in view of the doctrine of delay/latches on their part.
The TDSAT upheld TERM cell powers stating that DoT cannot be said
to have acted illegally and without jurisdiction in delegating its
power relating to making inspection, imposition of penalties and the
determination thereof by authorities of the Term Cells and the Appellate
Authority. The principle of Natural Justice was provided by DoT by
providing enough safeguards to the operators to put their points on
adverse findings.
