"We are examining the issue... Both have written to us and we are looking into various aspects and arguments given by both parties," J S Sarma, secretary, department of telecom, told PTI but declined to elaborate.
Birlas had asked DoT to direct Tatas to expeditiously reduce its shareholding in their joint venture Idea cellular below 10 per cent or nil either by direct or indirect transfer through change in control or through transfer of holding entities in India or overseas, consistent with the conditions of the license.
Tatas, on the other hand, have urged the DoT not to take any action on Birlas' plea as no regulatory compulsions should be imposed on them for bringing down their stake to below 10 per cent.
They maintained that the process has already been initiated, but they need sufficient time to do so to get a "fair value" for their stake.
Tata Industries has informed both Idea Cellular and DoT that it would bring the shareholding below 10 per cent by June 30, 2006.
Birlas through Aditya Birla Nuvo Limited hold 50.14 per cent stake in Idea Cellular and Tatas have 48.14 per cent.
Birlas have cited clauses 1.2, 1.3, 1.4 (i) and 1.4 (ii) of the cellular license, which have been contested by Tatas saying these need to be interpreted in perspective.
According to sources, it was necessary for Tatas to disclose their holdings in the Idea Cellular, as this was required not only for compliance of the license terms and conditions but it was also needed for other activities of any company.
Birlas' move appear to have surprised Tatas as the former were not a firm player in the telecom arena, which now has become a major growth point for the Group.
It could not be ascertained if Birlas and Tatas had any discussion on the stake issue before the former petitioned the DoT for its intervention. It was also not clear either that Birla or any other have made any offer to Tatas for their stake in Idea.
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