Trai seeks power to levy Rs 10 crore fine

Telecom regulator Trai has sought powers to impose penalty of upto Rs 10 crore on mobile operators and jail term of upto two years on their executives for any violation of regulatory framework.

This comes after the Su-preme Court quashed a Trai order that asked telecom operators to compensate subscribers for call drops. Trai has suggested to the department of telecom (DoT) amendments in various provisions in the Trai Act, 1997, with a view to be an “effective sector regulator”.

“If a service provider violates any direction, order or regulations made under this Act or terms and condition of licence, service provider to be liable for penalty which may extend to 10 crore rupees,” Trai said in its communication to the department of telecom (DoT).

After a detailed examination of the judgement, Trai said it has concluded the need for seeking greater clarity in protecting interest of consumers, grievance redressal and enforcement of its regulations and orders.

“In order to be an effective sector regulator Trai needs to be statutorily empowered to enforce its direction, orders, regulations as well as terms and conditions of licence issu-ed to service providers through imposition of penalties for contravention of such regulations directions etc,” Trai said.

It has proposed amendment in Section 29 of the Trai Act which is about penalty for contravention of its direction.