The Department of Telecommunications (DoT) is likely to impose a penalty of Rs 3.5 billion on Uninor for the alleged violation of licencing conditions.

The issue relates to the operator’s earlier partner Unitech Wireless bagging pan-India telecom licences in 2008 under different firms and later merging these into a single entity called Unitech Wireless Tamil Nadu Limited. According to DoT, the move was in violation of the licencing norms which barred promoters of a telecom company to sell shares for three years.