  The issue of how to deal with the modular transformations -- large
diffeomorphisms -- in (2+1)-quantum gravity on the torus is discussed. I study
the Chern-Simons/connection representation and show that the behavior of the
modular transformations on the reduced configuration space is so bad that it is
possible to rule out all finite dimensional unitary representations of the
modular group on the Hilbert space of $L^2$-functions on the reduced
configuration space. Furthermore, by assuming piecewise continuity for a dense
subset of the vectors in any Hilbert space based on the space of complex valued
functions on the reduced configuration space, it is shown that finite
dimensional representations are excluded no matter what inner-product we define
in this vector space. A brief discussion of the loop- and ADM-representations
is also included.
