TRAI Seeks More Penal Powers to Impose Higher Fines on Telecom Operators

The Telecom Regulatory Authority of India has approached the Department of Telecommunications seeking amendments to the Trai Act to grant it direct penal powers to enforce regulatory compliance by telecom operators, as per The Economic Times. 

Penalty Framework Under Proposal 

Under the proposed amendments, TRAI has recommended a substantial increase in penalties for non-compliance. The regulator has suggested fines of up to ₹5 crore per violation.  

In addition, telecom operators challenging such penalties would be required to deposit 50% of the imposed amount before their appeal is admitted. 

At present, penalties are limited to ₹1 lakh for the first offence and ₹2 lakh for subsequent violations, which Trai considers insufficient to act as an effective deterrent. 

Enforcement Limitations Prompting the Move 

TRAI faces significant hurdles in enforcing penalties under the current legal framework, as operators frequently challenge its orders in courts.  

Recovery of fines requires the regulator to initiate criminal proceedings before a magistrate, a process that is time-consuming and rarely pursued. 

Granting penal powers would enable Trai to recover penalties more efficiently, including through mechanisms available under the Income-tax Act, officials added. 

Wider Amendments to Strengthen the Regulator 

The regulator has proposed around 10 amendments to the TRAI Act, including greater autonomy in hiring personnel with competitive compensation and the establishment of a consumer education and protection fund. 

These measures are aimed at enhancing Trai’s institutional capacity amid rising complexity in the telecom sector. 

Background of Recent Disputes 

The demand for penal powers comes after telecom operators challenged penalties imposed last year for failing to curb unsolicited commercial communications under the Telecom Commercial Communications Customer Preference Regulations, 2018. The matter is currently pending before the Telecom Disputes Settlement & Appellate Tribunal. 

Read More: Telecom Operators Ask DoT to Step In on Connectivity Issues at Adani-Owned Navi Mumbai Airport! 

Conclusion 

TRAI’s proposal reflects its push for stronger enforcement authority as it seeks to ensure compliance and reduce prolonged legal disputes with telecom operators. 

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