2G: Loop asks govt to pay up Rs 4,700 cr for damages

Loop Telecom, which was forced to shut down its operations after the Supreme Court cancelled its licences in February this year, is now seeking compensation for damages from the Department of Telecom (DoT) and Telecom Regulation Authority of India (TRAI) totalling over Rs 4700 crore, an Economic Times report stated. This includes Rs 1454 croreof license fee and bank guarantees worth RS 696.04 crore.

Loop has sought refunds from the government for the fee it paid for acquiring licenses in 21 circles issued by then telecom minister A Raja in 2008. It has also asked for the discharge of its performance bank guarantees and any charges that may be ‘wrongly levied’ amounting to Rs 7.8 crore with interest.

“The reason for quashing the first-come-first-serve policy, the UASLs and the subsequent allocation of the spectrum are wholly and absolutely attributable to the acts and omissions of the respondent (DoT & Trai) and as a direct proximate result thereof, the petitioner has suffered huge losses and damages,” submitted Loop in the petition.

In addition to this, Loop has also asked for Rs 800 crore of compensation for the infrastructure costs and other corporate expenses, said the ET report.

The tribunal has asked the DoT and Trai to file their reply within four weeks and posted the matter on July 17 for next hearing.