DoT levies Rs 300 cr-penalty on Idea for M&A norm violation

The telecom minister has cleared a penalty note to Idea on account of Idea-Spice merger, wherein the DoT has levied a fine of Rs 50 crore per circle for six telecom circles, which translates to a total penalty of Rs 300 crore to the company. A showcause notice will be issued to Idea for a response within 60 days.

The DoT has concluded that the Idea-Spice merger was in violation of the terms and conditions of the applicable M&A policy at that time. It is to be noted that, the M&A norms at that time where not very clear. Idea has 60 days to respond to the notice but given the fact that there is also a court ruling which DoT believes has already covered the fate of these licensees, in these circles.