Kolkata: The telecom tribunal on Tuesday refused to stay the sector regulator’s July 11 order blocking Vodafone Idea’s RedX premium tariff plan, denying any interim relief on this score to the struggling telecom carrier, pushing the telco’s shares down sharply.
Vodafone Idea had on Monday moved the Telecom Disputes Settlement & Appellate Tribunal (TDSAT), as it was unhappy about “the hasty manner” in which the Telecom Regulatory Authority of India (Trai) had blocked its over eight-month old RedX tariff plan last weekend, without seeking its response on a matter that would also inconvenience many subscribers.
The TDSAT has issued a notice to Trai and hearing on the matter will continue on July 16. During the TDSAT hearing, VIL is learnt to have submitted that Trai had moved in a great hurry to issue a direction to withhold the telco’s RedX plan while the same was being reviewed by the authority, legal circles aware told ET. The tribunal bench, they said, subsequently enquired whether Trai could have investigated the matter more completely and taken a final decision. The tribunal, in fact, has asked Trai to file its reply to VIL’s appeal by Wednesday (July 15).
VIL shares lost 4.3% to close at Rs 9.34 on the Bombay Stock Exchange on Tuesday.
In response to Trai’s order, Vodafone Idea had in a letter dated July 12, said that the regulator had “prejudged the issue”, and that its directive asking the telco to withhold its RedX plan “is in gross violation of (the) principle of natural justice”.
“In the interest of equity and justice, we should be given a fair opportunity of representation and hearing in the matter,” VIL had said in its letter to Trai, a copy of which was seen by ET.
VIL added that “in the interest of justice,” Trai’s direction asking it to withhold its premium RedX plan should be “kept in abeyance” till the matter is decided upon after giving the company “a fair opportunity of being heard”.
Further, VIL had said Trai’s directive had been issued “in a mechanical manner,” especially as the regulator had not sent any queries despite the RedX plan being in operation for over eight months along with the filing of the tariff with the regulator.
At press time, VIL did not reply to ET’s queries.
On July 11, Trai had asked VIL and Airtel to put on hold their RedX and Platimum plans respectively, to enable a detailed examination of both schemes. It wanted to determine if these plans would result in a deterioration in quality of services for customers not on these plans.
Airtel though has told the regulator it will comply with the directive and not enrol new customers for the plan until Trai has examined it thoroughly.
