Excerpts from the TRAI Act, 1997

Powers and Functions of the Authority

• • 1. (1) Notwithstanding anything contained in the Indian Telegraph Act, 1885, the 13 of 1885 functions of the Authority shall be to –

1. • • 1. recommend the need and timing for introduction of new service provide;
       2. recommend the terms and conditions of licence to a service provider;
       3. ensure technical compatibility and effective inter-connection between different service providers;
       4. Regulate arrangement amongst service providers of sharing their revenue derived from providing telecommunication services.
       5. Ensure compliance of terms and conditions of licence;
       6. Recommend revocation of licence for non-compliance of terms and conditions of licence;
       7. Lay down and ensure the time period for providing local and long distance circuits of telecommunication between different service providers;
       8. Facilitate competition and promote efficiency in the operation of telecommunication services so as to facilitate growth in such services;
       9. Protect the interest of the consumers of telecommunication service;
       10. Monitor the quality of service and conduct the periodical survey of such service provided by the service providers;
       11. Inspect the equipment used in the network and recommend the type of equipment to be used by the service providers;
       12. Maintain register of interconnect agreements and of all such other matters as may be provided in the regulations;
       13. Keep register maintain under clause (1) open for inspection to any member of public on payment of such fee and compliance of such other requirements as many be provided in the regulations;
       14. Settle disputes between service providers;
       15. Render advice to the Central Government in the matters relation to the development of telecommunication technology and any other matter relatable to telecommunication industry in general;
       16. Levy fees and other charges at such rates and in respect of such services as may be determined by regulations;
       17. Ensure effective compliance of universal service obligations;
       18. Perform such other functions including such administrative and financial functions as may be entrusted to it by the Central Government or as may be necessary to carry out the provisions of the Act.

2. 1. Not withstanding anything contained in the India Telegraph Act, 1885, the Authority may, from time to time, by order, notify in the Official Gazette the rates at which the telecommunication services within India and outside India shall be provided under this Act including the rates at which messages shall be transmitted to any country outside India:

      Provided that the Authority may notify different rates for different persons or class of persons for similar telecommunication services and where different rates are fixed as aforesaid the Authority shall record the reasons therefor.

   2. While discharging its functions under sub-section (1), the Authority shall not act against the interest of the sovereignty and integrity of India, the security of the State, friendly relations with foreign States, public order, decency or morality.
   3. The Authority shall ensure transparency while exercising its powers and discharging its functions.

• • • • 2. (1) Where the Authority considers it expedient so to do, it may, by order in writing, -

1. • • 1. Call upon any service provider at any time to furnish in writing such information or explanation relating to its affairs as the Authority may require; or
       2. Appoint one or more persons to make an inquiry in relation to the affairs of any service provider; and
       3. Direct any of its officers or employees to inspect the books of account or other documents of any service provider.

2. 1. Where any inquiry in relation to the affairs of a service provider has been undertaken under sub-section (1), -

1. • • 1. Every officer of the Government Department, if such service provider is a department of the Government;
       2. Every director, manager, secretary or other officer, if such service provider is a company; or
       3. Every partner, manager, secretary or other officer, if such service provider is a firm: or
       4. Every other person or body of persons who has had dealings in the course of business with any of the persons mentioned in clauses (b) and (c),

shall be bound to produce before the Authority making the inquiry, all such books of account or other documents in his custody or power relating to, or having a bearing on the subject-matter of such inquiry and also to furnish to the Authority with any such statement or information relating thereto, as the case may be, required of him, within such time as may be specified.

2. 1. Every service provider shall maintain such books of account or other documents as may be prescribed.
   2. The Authority shall have the power to issue such directions to service provider as it may consider necessary for proper functioning by service provides.

• • 3. The Authority may, for the discharge of its functions under sub-section (1) of section 11, issue such directions from time to time to the service providers, as it may consider necessary.

     

SETTLEMENT OF DISPUTES

• • 4. (1). If a dispute arises, in respect of matters referred to in sub-section (2), among service providers or between service providers and a group of consumers, such disputes shall be adjudicated by a bench constituted by the Chairperson and such bench shall consist of two members:

Provided that if the members of the bench differ on any point or points they shall state the point or points on which they differ and refer the same to a third member for hearing on such point or points and such point or points shall be decided according to the opinion of that member.

• • • • (2) The bench constituted under sub-section (1) shall exercise, on and from the appointed day all such jurisdiction, powers and authority as were exercisable immediately before that date by any civil court on any matter relating to -

1. • • 1. technical compatibility and inter-connections between service providers;
       2. revenue sharing arrangements between different service providers;
       3. quality of telecommunication services and interest of consumers;

Provided that nothing in this sub-section shall apply in respect of matters relating to-

1. • • 1. the monopolistic trade practice, restrictive trade practice and unfair trade practice which are subject to the jurisdiction of the Monopolies and Restrictive Trade Practices Commission established under sub-section (1) of section 5 of the Monopolies and Restrictive Trade Practices Act, 1969;
       2. the complaint of an individual consumer maintainable before a Consumer Disputes Redressal Forum or a consumer Disputes Redressal Commission or the National Consumer Redressal Commission established under section 9 of the Consumer Protection Act, 1986;
       3. dispute between telegraph authority and any other person referred to in sub-section (1) of section 7B of the Indian telegraph Act, 1885.

• • • • 5. (1) An aggrieved person may make an application in respect of matters referred to in sub-section (2) of section 14 within such period as may be prescribed.

Explanation. - For the purpose of this sub-section, the expression "aggrieved person" means-

1. • • 1. any service provider who has a dispute in respect of matters referred to in clauses (i) and (ii) of sub-section (2) of section 14;
       2. where any loss or damage is caused to a group of consumers, any member representing such group of consumers.

2. 1. On receipt of an application made under sub-section (1), the Authority may, after giving the parties an opportunity of being heard, pass such orders as it thinks fit preferably within a period of six months from the date of filing of such application and shall record reasons in writing if final order cannot be passed within the said period.
   2. While arriving at a decision, the Authority shall record in writing the reasons for such decision.
   3. Every decision of the Authority shall be published in the annual report of the Authority.
   4. The orders and directions of the Authority shall be binding on the service providers, Government and all other persons concerned.

• • 6. (1) The Authority shall be guided by the principles of natural justice.
    • • (2) The Authority shall have, for the purpose of discharging their functions under this Chapter, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 in respect of the following matters, namely:-

1. • • 1. summoning and enforcing the attendance of any person and examining him on oath;
       2. requiring the discovery and production of documents;
       3. receiving evidence on affidavits;
       4. issuing commissions for the examination of witnesses or documents;
       5. reviewing its decisions;
       6. dismissing an application for default or deciding it ex parte;
       7. setting aside any order of dismissal of any application for default or any order passed by it ex parte;
       8. any other matter which may be prescribed.

3. 1. Every proceeding before the Authority shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purpose of section 196 of the Indian Penal Code and Authority shall be deemed to be a civil court for all the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.

7. The applicant may either appear in person or authorise one or more legal practitioners or any of its officers to present his or its case before the Authority.
8. Any person aggrieved by any decision or order of the Authority may file an appeal to the High Court with in thirty day from the date of communication of the decision or order of the Authority to him:

   Provided that the High Court may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty days.

9. Every order made by the Authority under this Act or the order made by the High Court in any appeal against any order of the Authority shall, on a certificate issued by any officer of the Authority or the Registrar of the High Court, as the case may be, be deemed to be decree of the civil court and shall be executable in the same manner as a decree of that court.
10. If any person wilfully fails to comply with the orders of the Authority or any order of the high Court, as the case may be, he shall be punishable with fine which may extend to one lakh rupees and in case of a second or subsequent offence with fine which may extend to two lakh rupees and in the case of continuing contravention with additional fine which may extend to two lakh rupees for every day during which the default continues.;

     

    MISCELLANEOUS

11. (1) The Central Government may, from to time to time, issue to the Authority such directions as it may think necessary in the interest of the sovereignty and integrity of India, the security of the State, friendly relations with foreign States, public order, decency or morality.

2. Without prejudice to the foregoing provisions, the Authority shall, in exercise of its functions, be bound by such directions on questions of policy as the central Government may give in writing to it from time to time:

   Provided that the Authority shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section

3. The decision of the Central Government whether a question is one of policy or not shall be final.

7. All members, officers and other employees of the Authority shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act to be public servants within the meaning of section 21 of the Indian Penal Code.
8. No civil court shall have jurisdiction in respect of any matter which the Authority is empowered by or under this Act to determine.
9. No suit, prosecution or other legal proceedings shall lie against the Central Government or the Authority or any officer of the Central Government or any member, officer or other employees of the Authority for anything which is in good faith done or intended to be done under this Act or the rules or regulations made thereunder.
10. If a person violates directions of the Authority, such person shall be punishable with fine which may extend to one lakh rupees and in case of second or subsequent offence with fine which may extend to two lakh rupees and in the case of continuing contravention with additional fine which may extend to two lakh rupees for every day during which the default continues.
11. (1) Where an offence under this Act has been committed by a company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company , as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.

Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he has exercised all due diligence to prevent the commission of such offence.

2. 1. Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.

Explanation – For the purpose of this section, -

1. 1. "company" means any body corporate and includes a firm or other association of individuals; and
   2. "director", in relation to a firm, means a partner in the firm.

• • • • 17. (1) Where an offence under this Act has been committed by any Department of Government, the Head of the Department shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly unless he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

        (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a Department of Government and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any officer, other than the Head of the Department, such officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

18. Notwithstanding anything contained in the Wealth-tax Act, 1957, the Income-tax Act, 1961, or any other enactment for the time being in force relating to tax on wealth, income, profits or gains, the Authority shall not be liable to pay wealth-tax, income-tax or any other tax in respect of their wealth, income, profits or gains derived.
19. The Authority may, by general or special order in writing, delegate to any member, officer of the Authority or any other person subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Act (except the power to settle dispute under Chapter IV and to make regulation under section 36) as it may deem necessary.
20. (1) No court shall take cognizance of any offence punishable under this Act or the rules or regulations made thereunder, save on a complaint made by the Authority.

• • • • (2) No court inferior to that of a Chief Metropolitan Magistrate or a Chief Judicial Magistrate of first class shall try any offence punishable under this Act.

        21. (1) The Central Government may, by notification, make rules for carrying out the purposes of this Act.

        (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-

1. • • 1. the salary and allowances payable to and the other conditions of service of the Chairperson and members under sub-section (5) of section 5;
       2. the powers and functions of the Chairperson under sub-section (1) of section 6;
       3. the procedure for conducting an inquiry made under sub-section (2) of section 7;
       4. the category of books of account or other documents which are required to be maintained under sub-section (3) of section 12;
       5. the period within which an application is to be made under sub-section (1) of section 15;
       6. the manner in which the accounts of the Authority shall be maintained under sub-section (1) of section 23;
       7. the time within which and the form and manner in which returns and report are to be made to the Central Government under sub-sections (1) and (2) of section 24;
       8. any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, by rules.

• • • • 22. (1) The Authority may, by notification, make regulations consistent with this Act and the rules made thereunder to carry out the purposes of this Act.

2. 1. In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:-

1. • • 1. the times and places of meetings of the Authority and the procedure to be followed at such meetings under sub-section (1) of section 8, including quorum necessary for the transaction of business;
       2. the transaction of business at the meetings of the Authority under sub-section (4) of section 8;
       3. the salaries and allowances payable to and the other conditions of service of officers and other employees of the Authority under sub-section (2) of section 10;
       4. matters in respect of which register is to be maintained by the Authority under clause (1) of sub-section (1) of section 11;
       5. levy of fee and lay down such other requirements on fulfillment of which a copy of register may be obtained under clause (m) of sub-section (1) of section 11;
       6. levy of fees and other charges under clause (p) of sub-section (1) of section 11.

23. Every rule and every regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in mange any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation.
24. The provisions of this Act shall be in addition to the provisions of the India telegraph Act, 1885 and the Indian Wireless Telegraphy Act, 1933 and, in particular, nothing in this Act shall affect any jurisdiction, powers and functions required to be exercised or performed by the Telegraph Authority in relation to any area falling within the jurisdiction of such Authority.
25. (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty;

Provided that no order shall be made under this section after the expiry of two years from the date of commencement of this Act.

• • • • (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.

        26. (1) The Telecom Regulatory Authority of India Ordinance 1997 is hereby repealed.

        (2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act.