New Delhi: Facing allegations of favouring Anil Ambani-led Reliance Communications, Telecom Minister Kapil Sibal on Friday hit out at an NGO which has approached the Supreme Court against him and said PILs should not be used to ‘settle personal scores’.

He dismissed the charges against him as "malicious, motivated and defamatory" and said if such a scenario prevailed; a minister would not be able to take tough decisions.

Addressing a press conference here, Sibal insisted that the penalty of Rs 5 crore imposed on  RCom for interrupting services briefly was as per the agreement between USO Fund and the private operator and questioned the basis of the NGO's claim that the company should have been fined Rs 650 crore.

He termed as "unfortunate" the allegations that he had over-ruled officials of his ministry, saying the government could not function this way that a minister cannot take a decision because he would be labelled as "dishonest and wanting to favour private parties".

Sibal suggested that the PILs were being misused as they were meant only for serving public interest and "not to settle personal score". He, however, did not elaborate even when asked whether he felt he was deliberately being targeted.

Giving details of the issue, he said Reliance Telecom services were switched off for "whatever reasons" in November 2010 and on December 21; a show cause notice was issued to the company threatening imposition of "lumpsum" amount of Rs 50 crore as penalty for the same. "The notice for Rs 50 crore was to pressurise the Reliance Telecom.... They got worried," Sibal said, adding finally the services were restored on February 16, this year and the company paid a penalty of Rs 5.5 crore.

He maintained that the penalty was calculated on the basis of duration of disruption of services (7-45 days) as provided in the agreement between USO Fund and RCom.

An application was filed in the Supreme Court by Centre for Public Interest Litigation (CPIL) alleging that Sibal reduced the penalty from Rs 650 crore to Rs five crore against Anil Ambani-headed RCom for violations in the UASL agreement.
The NGO alleged that a penalty of Rs 50 crore per circle should have been imposed for "violation of the terms and conditions of Universal Service Obligation Fund (USOF) agreement and UASL agreement by voluntary, unilateral and unauthorized switching-off/closure of services to subscribers from USOF sites without any notice."

He said when the file reached him on February 18, this year, RCom had already restored the services two days prior to that. He said he gave instructions to impose penalty as per the provisions of the agreement and did not himself decide the amount of Rs 5 crore as penalty.

He, however, was evasive when asked on what basis Rs 50 crore was decided as penalty.

(Agencies)