The department of telecommunications (DoT) is set to start criminal proceedings against Matrix Cellular (International) Services Pvt Ltd (MCISPL), for violation of IT Act.
The company took SIM cards in bulk from Vodafone Essar and gave it on rent to individuals. DoT has also approved imposing a fine of Rs50 crore on Vodafone Essar for violation of licence conditions.
IT Act does not permit reselling of SIM cards or telephone connectivity.
“The TERM Cell Delhi shall file a criminal case in the court of the magistrate of first class under section 20 of the IT Act for working unauthorised telegraph by renting of SIMs in which one of the case pertains MCISPL. This is as per TERM Cell investigation report to DoT that this company had taken bulk connection from licnensee Vodafone Essar Mobile Services Ltd and further rented SIMs to individuals,” according to an internal note dated September 7 by the department of telecommunications.
MCISPL provides international connectivity to foreign travellers and also provides customer management services to Vodafone Essar in Delhi and National Capital Region.
“We are a law abiding company and are not aware of this issue,” said a spokesperson of MCISPL. “We are not in the business of bulk renting of SIM card.”
The telecom department is also sending notice to Vodafone Essar for violation of licence conditions.
“This matter is more than two years old. We are fully compliant of the DoT requirement on this matter,” said a spokesperson of Vodafone Essar.