Idea Cellular’s petition challenging Rs 300 crore penalty imposed on it by DoT has been admitted by Telecom tribunal TDSAT. DoT had alleged that Idea held more than 10 per cent stake in two firms in six circles which is against UASL guidelines.

"These petitions are allowed. The respondent (government) is directed to exercise its discretion and pass a fresh order upon complying with the principles of natural justice," TDSAT said.

The tribunal said that DoT should justify imposition a maximum penalty of Rs 50 crore for each circle and it and how it reached such conclusion.

Idea has a batch of petitions challenging Rs 300 crore penalty imposed on February 24, 2011, on Spice Communication. UASL Guidelines prohibits a mobile phone company from holding more than 10 per cent stake in two telcos operating in the same regions, said DoT.

Spice had licences for Haryana, Punjab, Andhra Pradesh, Karnataka, and Delhi circles and Idea had obtained licences for the same. Later, Spice had merged with Idea.