NEW DELHI, February 23: In a major development, the Department of Telecommunications (DoT) has decided to reduce the period of the ban imposed on equipment purchases from Advanced Radio Masts (ARM) from two years to eight months. ARM was blacklisted by the DoT following the Central Bureau of Investigation allegations of an involvement between the company's managing director, the controversial Patalu Rama Rao and former communications minister Sukh Ram in the telecom scam.Following the unearthing of the scam in August, 1996, the vigilance department of the DoT had initiated proceedings against the company and issued show cause notices to ARM finally ordering a ban on equipment purchases from it in August last year.
The DoT ban at that time carried a penalty on the company for a two-year period. The company however later represented to the Telecom Commission for a review of its decision as the company depended mainly on DoT purchases to keep its production levels going. The company appealed to the DoT onthe grounds that if the DoT stopped buying equipment from it, the company was sure to fall sick as DoT was its sole buyer of equipment.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
