Idea has also been directed to pay 10 million rupees  ($225,073) for supressing information on its deal with Spice, the Delhi High Court said in an order posted on its website.

Idea denied wrongdoing and said it would appeal against the order.

"Idea stands upright, has not suppressed anything at all, let alone willfully, and will appeal for what it believes is right," the company said in a statement.

In 2008, Idea agreed to buy smaller rival Spice in a three-way deal that also gave Malaysia's Axiata about a fifth of Idea.

In April, the company said it had "unconditionally offered" to surrender overlapping licences to comply with rules, as both Idea and Spice held separate licences for same operating zones.

Under Indian rules, no firm is allowed to own 10 percent or more in two competing companies operating in a zone.

Copyright Reuters, 2011