TDSAT rejects Loop refund plea

21 Sep 2015

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has rejected an appeal from Loop Telecom for a refund of INR22.31 billion (USD339.32 million) in licence fees and interest in relation to the cancellation of its 21 GSM licences in February 2012, the Economic Times writes. In its decision, the tribunal explained that it could not rule in the company’s favour whilst the telco is facing a pending criminal trial in relation to the allocation of the withdrawn licences. Further, the order noted that it was not within the TDSAT’s powers to order a refund, directing the company to instead ‘approach the court that quashed its licences, that is, the Supreme Court, and seek appropriate reliefs.’

According to TeleGeography’s GlobalComms Database, Loop’s authorisations were amongst the 122 concessions cancelled by the Supreme Court in 2012 following an investigation into suspected corruption around their allocation in 2008. At the time of its closure in April 2012 Loop Telecom had launched in 13 of its 21 licensed circles but had only managed to sign up a total of 6,172 subscribers: the majority of these (2,369) were in Kolkata, whilst Uttar Pradesh West had seen the least success, with just eight subscribers in that region.

India, Loop Mobile