TRAI seeks powers to penalise telecom companies which fail to meet regulations

NEW DELHI: The Telecom Regulatory Authority of India (Trai) has sought powers to levy a penalty of up to Rs 10 crore and a jail term of up to two years on executives of telecom companies that fail to meet regulations set by it.

In a letter written to the Department of Telecommunications (DoT), the regulator has suggested amendments in the Trai Act 1997, so that it may function as an effective regulator.

A senior official of the DoT confirmed receiving the letter which says that regulator has sought amendment in Section 29 of the Trai Act 1997 to include penalty as well as a jail term for offenders. "Section 29 may be substituted with... If a person violates direction of the authority, such personnel shall be punishable with imprisonment for a term which may be extended to two years and shall be liable to fine which may be extended to Rs 15 lakh," the regulator has written.

It further added that if a service provider violates any direction, order or regulations made under this Act or terms and condition of licenugh, have said that disputes can’t be resolved through levying penalties but by consultation and cooperation between all stakeholders.

The telecom regulator had mandated telcos to pay Rs 1 for each dropped call, subject to maximum Rs 3 per day, beginning January 1. The apex court later struck it down after companies appealed against it.

At present, Trai can impose fine of up to Rs 2 lakh for a violation and in case default continues, penalty of Rs 2 lakh can be imposed till the time of breach of rules.

If the operator doesn’t comply, Trai can file a legal case against operator.