Vodafone Idea Ltd.gj vs Union Of India, Delhi

This petition is admitted.  No notice need be isused as Mr. A.P. Sahay, accepts notice in this petition for the respondent – Union of India.

So far as the interim relief is concerned looking to the facts and circumstances of the case and the show cause notice at Annexure P-2 issued by the respondent, it appears that several SIM cards were recovered by UP Police (Cyber Crime Cell) from Lucknow district on 11.3.2021 – M/s. Vodafone Idea Limited – UP (East) licence service area.  The show cause notice was given on 22.6.2021.  The reply was given by this petitioner to the respondent and finally the rejection order had been passed by the respondent on 25.2.2022 whereby the representation received from M/s. Vodafone Idea Limited (VIL) dated 14.2.2022 with respect to the demand notice dated 7.2.2022 was rejected, whereby this petitioner was directed to make the payment of Rs. 1,09,00,000/- for 218 pre-activated SIMs before the sale of the SIM cards. Looking to Department of Telecommunications (DoT) letter No. 800-09/20010-VAS dated 9.8.2012, as per para 3(VII), in case of sale of pre-activated SIM cards, a penalty of Rs.50,000/- per such connection shall be levied in addition  to immediate disconnection of mobile connection, as and when detected.  Looking to the fact that 218 SIM cards which were pre-activated, were found from the possession of Point of Sale (POS) of this petitioner and looking to the fact stated in the show cause notice which is at Annexure P1 and also looking to the order of rejection passed by the respondent which is at Annexure P-6, there is no prima-facie case in favour of this petitioner.  Moreover, balance of convenience is also not in favour of this petitioner and if the stay, as prayed for, is not granted there shall be no irreparable loss to this petitioner.  The money to be deposited by this petitioner with the respondent shall not be treated as an admission of any fact by the petitioner nor the acceptance of the said amount shall be treated as an admission of any fact by the respondent.  If the petitioner succeeds in this petition, the amount shall be returned by the respondent immediately.  Counsel appearing for the petitioner has submitted that this is not a case of pre-activated SIM Cards at all.  This issue shall be decided at the time of final hearing in this petition, otherwise nothing will be left out to be decided by this Tribunal at the time of final hearing.

The respondent may file reply within a period of four weeks.  Rejoinder, if need be filed by the petitioner, the same shall be filed within a further period of two weeks.  This matter will be listed under the heading for “Directions” on 26.8.2022.

The amount shall be deposited by the petitioner which is Rs. 1,09,00,000/- within a period of two weeks from today.