Loop Telecom seeks refund of license fee along with interest

New Delhi, Feb 24 (PTI) Loop Telecom, one of the several firms whose licence was cancelled by the Supreme Court earlier this month, has written to Prime Minister Manmohan Singh saying it will surrender the licence if the government refunds rupees 14.54 billion (nearly USD 300 million) fee along with interest. The company made the proposal to avoid litigation. "We will surrender the licence, against the DoT making a refund of licence fee of Rs 1,454 crore with interest. All our performance and financial bank guarantees may be released," Managing Director and CEO Sandip Basu wrote to the Prime Minister on February 17. He said Loop Telecom has made investment in excess of Rs 35.0 billion (about USD 715 mn) in its business. Holding the government responsible for cancellation of licence by the apex Indian court, Basu said that Loop Telecom is entitled to refund of licence fee of Rs 14.54 billion, compensation for additional investment already made till date (approximately Rs 20.00 billion or USD 408 mn) and compensation for loss of profits and damages of reputation. Basu, however, said that Loop Telecom will not file a review petition or take any other proceedings for challenging the judgement of the Supreme Court that cancelled its licences. He added that it will not seek any compensation for investment of Rs 20.0 billion already made, damages on account of wrongful actions of the government/DoT. He has asked PM to take decision on his proposals before end of time limit for filing review petition. Loop Telecom CEO also said that government should protect investment made by Indians in the same manner in which it is trying to protect investment made by foreign companies. The Supreme Court judgement that cancelled 122 2G licences included 21 licences that were allotted to Loop in 2008. PTI