Loop Telecom closes, demanding INR38bn; Loop Mobile unaffected

11 Apr 2012

In the wake of February’s Supreme Court decision to cancel 122 2G licences, Loop Telecom Ltd has confirmed that it plans to shut down operations by 15 May this year, reports the Wall Street Journal. However, Loop Telecom’s sister company Loop Mobile will continue offering its services, unaffected by the apex court’s ruling. Telecom has sent a letter to the regulator, the Department of Telecommunications (DoT) requesting that it refund the INR14.549 billion (USD278.362 million) it paid for its licences plus a further INR7.242 billion interest on the licence fee, INR7.87 billion as compensation for investments made by the company and INR8.12 billion worth of bank guarantees deposited by the company as part of the licensing procedure. Loop Telecom staked its claim for a total INR37.781 billion compensation ‘on the ground that the government of India’s policies and decisions were arbitrary and unconstitutional.’