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No coercive steps against telecom till next Thursday: SC

Friday, March 4, 2016, 8:09
This news item was posted in Business category and has 0 Comments so far.

NEW DELHI: The Supreme Court on Friday restrained the government from taking any coercive steps till next Thursday against telecom companies for failing to comply with an order asking them to compensate consumers for call drops. “There is nothing prima face ultra vires the order,” a bench, comprising justices Kurian Joseph and R F Nariman, said. The judges were referring to the TRAI order of Oct 16, 2015. That has since been upheld by the High Court on February 29 and the telcos have challenged it in the top court. The top court said that telcos must compensate consumers if call drops were due to their fault. Justice Nariman said that the court would deal with the matter next Thursday. The top court then issued notices to the government on the telcos appeals. The TRAI had asked them to compensate consumers at the rate of Re 1 per call subject to the maximum of three rupees per day with effect from Jan 1, 2016. Telcos claim that this would cost them Rs 3000 to 9000 crore per month.

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