The price of spectrum in the 1800 MHz band in Delhi, Mumbai, Karnataka and Rajasthan was reduced by 30% after no bid was received for them in November. But even after a price cut, there was no taker. Sistema Shyam Teleservices was the lone applicant in the CDMA auction
The government’s 2G second generation spectrum auction next month looks set to be a washout with just one company, Russia’s Sistema, applying for participation in the sale of airwaves that too in just one of the three bands for which bids were invited.
Reacting to the muted interest shown by companies, telecom minister Kapil Sibal said: “Fate of this sector is being decided somewhere else. The government has done its best and meticulously followed the Supreme Court order.” “I think that government’s hands were tied… and the result is for everybody to see.” he added.
The Department of Telecommunications (DoT) had announced conducting auction for spectrum unsold in November along with spectrum that is being held by operators whose licences are due for renewal in 2014.
The price of spectrum (1800 MHz band) in Delhi, Mumbai, Karnataka and Rajasthan was reduced by 30% after no bid was received for them in November. But even after a price cut, there was no taker.
“No application was received for the second round of GSM spectrum till the official time of 5.00pm on Monday, while Sistema’s Indian joint venture Sistema Shyam Teleservices was the lone applicant in the CDMA auction,” a DOT source said. While cancelling 122 2G licences, the Supreme Court on 2 February 2012 had asked the centre to allocate spectrum to companies through auction.
The apex court, which earlier extended the deadline to two Sahara companies for refunding investor's money from November end to first week of February, refused to grant more time
The Supreme Court on Monday dismissed a plea filed by Sahara group seeking an extension of a deadline for depositing money and documents with market regulator Securities & Exchange Board of India (SEBI). The apex court also pulled Sahara for not complying its earlier order of refunding Rs24,000 crore of investor's money by first week of February.
A bench headed by Chief Justice Altamas Kabir, said, "If you have not refunded the amount as per our order then you have no business to come to court".
Two companies of Sahara group--Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC)--who along with Sahara Chief Subrata Roy are facing contempt proceeding in the apex court before another bench which had on 6th February allowed SEBI to freeze accounts and seize properties of its two companies for defying court orders by not refunding the money to investors.
On 13th February, SEBI ordered a freeze on the assets and bank accounts of two Sahara group companies, saying they had failed to heed the Supreme Court order to repay investors. According to some media reports, more than 100 bank accounts of the group were affected by the order. The market regulator also ordered a freeze on all bank accounts and properties in the name of the Sahara Group founder, Subrata Roy, and three other directors of the two companies, Sahara Housing Investment Corp and Sahara India Real Estate Corp.
Nifty may remain directionless until budget