SC issues notice to govt on cancellation of 2G spectrum
Moneylife Digital Team 10 January 2011

New Delhi: The Supreme Court on Monday issued notice to the Centre on the plea seeking cancellation of second generation (2G) spectrum licenses allocated during the tenure of former telecom minister A Raja, reports PTI.

The apex court also issued notices to 11 companies which allegedly did not fulfil their roll-out obligations as per the terms and conditions of allocation of the spectrum.

In 2008, 2G spectrum scam allegedly involving government officials illegally undercharging mobile telephony companies for frequency allocation licenses came to light, which has cost $38.27 billion to the Indian exchequer.

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

A bench comprising justices G S Singhvi and A K Ganguly sought a response from the Department of Telecom (DoT) and the companies within three weeks and posted the matter for hearing on 1st February.

"After considering submission of the petitioner's counsel that since TRAI has sent a letter dated 15 November 2010 to secretary, DoT, which indicated that many companies have not complied with the roll-out obligation and have not started the services, we deem it fit to entertain the petition," the bench said.

"Accordingly, TRAI, through its secretary, is impleaded as a party," it said.

The bench was hearing a petition filed by a non-governmental organisation (NGO) Centre for Public Interest Litigation (CPIL) seeking cancellation of the licenses alleging that all norms were violated.

The companies which were issued notices were Etisalat, Uninor, Loop Telecom, Videocon, S-Tel, Allianz Infra, Idea Cellular, Tata Teleservices, Sistema Shyam Teleservices, Dishnet wireless and Vodafone-Essar.

The bench was also hearing the petition filed by Janata Party chief Subramanian Swamy who has also sought identical directions.

However, the bench asked Mr Swamy to make the companies, who have not fulfilled the roll-out obligations, as parties, and then it will hear the matter along with the CPIL petition.

Advocate Prashant Bhushan, appearing for the CPIL, elaborated the grounds for the cancellation of the 2G licenses.

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