DoT’s Power to impose Penalty on Operators for not completing Customer Verification upheld by TDSAT

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.