The Department of Telecommunications (DoT) has decided to withdraw the penalty of about Rs 10 billion on Loop Telecom, which the former had imposed on alleged violation of 2G spectrum licence norms by discontinuing operations in 20 circles.

Loop Telecom’s licences were quashed by the Supreme Court on February 2, 2012. The company had thereafter discontinued services from June 1, 2012 and preferred not to acquire frequency airwaves in the spectrum auction. DoT had then imposed the penalty on the company for shutting down its operations without following the due procedures under the licensing agreement.

After the initial notice from the DoT, the company had approached the Supreme Court on the grounds that DoT was not entitled to levy damages and penalty on the company for the period after June 1, 2012. Following this, the DoT sought legal opinion on the matter.