In a significant rule on the ongoing 2G spectrum scam, the
Supreme Court today (2 Feb) cancelled all 122 telecom licences allotted under
the 2G spectrum on or after January 10, 2008, ascertaining that these licenses were
granted in an arbitrary and unconstitutional manner.
The government, however, still maintains that there was nothing wrong with their policy, and that only implementation was flawed. Therefore, this time round they will ensure complete transparency in the issue process, sources said.
The apex court observed that
85 out of the 122 licences were outside the eligibility criteria for
allocation. The verdict further said that telecom regulator TRAI will make new
guidelines for the fresh issue of new licenses in two months.
The cancelled licenses include that of Videocon (21),
Uninor (22), Idea (9), Tata Teleservices (3), Swan Telecom (13) and Loop (21). There
is also a 5 crore penalty each on Uninor, Swan Telecom and Tata Tele, while Loop,
S-Tel, Allianz and Sistema Shyam will have to pay a fine of 50 lakhs.
Commenting on the ruling, TRAI Chairman JS Sarma said
that he did not expect disruption of facilities or services to the customers. He added that TRAI would now follow the auction method to allot new licences. He also
hinted that TRAI would now start consultation process with telecom companies.
The SC ruling evoked mixed
reactions among lawyers. HP Ranina, corporate tax lawyer, said that this
decision will shake up the whole of corporate India, not only telecom
companies. Lawyer Majid Menon agrees, saying that those companies who were not
even involved in the scam will have to suffer.
While maintain that the SC
should have refrained from such a move, SC lawyer Ram Jethmalani says that the
political implication of the verdict is that the current government will have
to resign and not continue even for a day.
Meanwhile, the SC has deferred
the Chidambaram case to Trial Court which
will take the decision on Saturday, 4 Feb. So there is still no clarity on whether he
will be charged as a co-accused or even about his role. Advocate Ranina says
that this verdict will now put Chidambaram on tenterhooks because it means that
there is something to wait for on Saturday.
The government, however, still maintains that there was nothing wrong with their policy, and that only implementation was flawed. Therefore, this time round they will ensure complete transparency in the issue process, sources said.
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