2G spectrum: SC notices to pvt telecom companies

The Supreme Court on Monday issued notice to both the Union government and 11 telecom companies, including Idea, Tata Teleservices and Aircel following a plea seeking cancellation of 2G spectrum licenses, allocated during the tenure of former Telecom minster A Raja.

The court notice was issued on the basis of complaints that the private companies did not fulfil the rollout obligations as per the terms and conditions of allocation of the spectrum.

The SC also decided to study the issue.

The licenses, awarded in 2008, were allegedly under-valued and cost the government upto Rs 1.76 lakh crores.

The apex court also made the Telecom Regulatory Authority of India (TRAI) as a respondent in the petition.

The SC bench, comprising justices G.S. Singhvi and A.K. Ganguly sought response from the Department of Telecom and the companies within three weeks.

The next hearing is on Feb 1.

The SC notices came after hearing two petitions – one by Janata Party leader Subramanium Swami and the other by the Centre for Public Interest Litigation (CPIL) headed by lawyer Prashant Bhushan.

Both are seeking cancellation of 2G licences and holding fresh auction.

The CPIL and several prominent petitioners, including former Chief Election Commissioners, J.M. Lyngdoh, T.S. Krishnamurthy and N. Gopalaswami; besides former Central Vigilance Commissioner, P. Shankar, submitted that even the sectoral regulator had recommended the cancellation of 69 of the 122 licences.

The common plea is that the allocation of 2G spectrum and telecom licences made by the Department of Telecommunications pursuant to the two press releases issued by it on Jan 10, 2008 be held illegal, licences be cancelled, spectrum be taken back by the government and then be auctioned as was done in 2001 and has been done in 2010.

The report by the government’s auditor, the Comptroller and Auditor General (CAG), said losses from the allocation of 2G spectrum in 2008 could add upto Rs. 1.76 lakh crore.

The report pushed A Raja to resign as Telecom Minister in Nov last year.