Idea gets show-cause for M&A norm violations in Punjab

Idea cellular,owned by the Aditya Birla group, received show-cause notice for violating norms in  Punjab circle. 

In 2008, Idea Cellular had bought 41.09 per cent stake in Spice, resulting in both operators having 12 licences in six circles. 

Recently, the Additional Solicitor General of India (ASGI) Amarjit Singh Chandhiok had said Idea Cellular had violated the merger and acquisition (M&A) norms.

In his findings, he suggested imposition of stringent penalties, including a Rs 300 crore fine, withdrawal of 3G spectrum in four circles and cancellation of 2G licences in the six circles where the companies Spice and Idea held multiple licences.

Idea fell by 2.4% in todays trading and closed at 58.2. The stock lost 18% in the current month on relentless selling pressure.