The Delhi High Court has refused to quash the Telecom Regulatory Authority of India's (TRAI) recommendation to impose a penalty of approximately ₹2,000 crore on Vodafone-Idea for not providing interconnectivity to Reliance Jio.

Division Bench of the Delhi High Court, consisting of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad, acknowledged that both the TRAI recommendations from 2016 and the Central government's order dated September 29, 2021, imposing the penalty, are already being challenged before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).

The court stated that similar petitions challenging the TRAI recommendations from 2016 and the Central government's order imposing the fine are already pending before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).

The court acknowledged that the TDSAT has already stayed the Central government's order and has the authority to deal with the case. The bench emphasized that the TDSAT has the power to determine whether the Central government's order is legally sustainable, and if it concludes that it is not, the 2016 TRAI recommendation, which is being challenged in the current writ petitions, would automatically be set aside.

The court agreed with the TRAI and the Central government's argument that any observations made by the High Court could adversely affect the ongoing petitions before the TDSAT. Consequently, the court disposed of the writ petitions and clarified that it had not made any observations on the merits of the case, leaving it open for the TDSAT to decide the issue on its merits.

In 2016, the TRAI recommended penalties of ₹50 crore for each of the 21 circles in the country for both Vodafone and Airtel. Additionally, a penalty of ₹950 crore was recommended for the 19 circles that Vodafone operated in. Since Vodafone and Idea merged, the penalty against them now amounts to nearly ₹2,000 crore.

Vodafone-Idea argued in their plea that the TRAI's recommendation lacked jurisdiction and was wrongly passed without adhering to the principles of natural justice. They claimed that the TRAI's action was premeditated to create grounds against them for alleged non-compliance with license conditions.

Representing Vodafone-Idea, Senior Advocate Gopal Jain and a team of advocates appeared before the court.

Senior Advocates Ramji Srinivasan and Ritin Rai, along with the Central Government Standing Counsel (CGSC) Pinky Pawar and a team of advocates, represented the Central government.

Case Title: Vodafone-Idea vs. TRAI