Telecom companies are ‘at war’, says Centre

“Telecom companies are at war,” was how the Centre described the ongoing legal battle in the Supreme Court on the issue of 2G spectrum allocation on Wednesday. Faced with the judicial heat on arbitrary allocation of 2G spectrum licenses three years ago, the Centre stated that there was some “type of war” going on among the telecom service providers.

During the inconclusive hearing in a PIL seeking cancellation of licences that cost the exchequer Rs`1.76 lakh crore, Additional Solicitor General Indira Jaising told the Supreme Court that some telecom companies are in favour of the cancellation while others are opposed to it. Jaising stated that she wanted the court’s permission to advance the government’s submission after all other parties holding divergent views finished their arguments.

The bench of Justice GS Singhvi and Justice AK Ganguly, however, rejected the government’s plea saying the most important aspect of the case is relating to the policy and the government should first make its stand clear on this aspect. The bench told the government that “all the companies are beneficiaries of your policy. So, no one would oppose you (government).”

DoT minister Kapil Sibal has put a question mark on the figure offered by the Comptroller and Auditor General (CAG) of India on the loss to the exchequer as it has said that licenses allocated by former minister A Raja, who is in jail, wouldn’t be cancelled.

The civil societies have alleged that the allocation, made by the DoT when Raja was the minister, was marred by “multiple illegalities, corruption and favouritism”.  Citing two press releases issued by the DoT on January 10, 2008, the petitioners have alleged large scale irregularities. “Irregularities and illegalities have also been recorded and commented upon by two detailed judgements of the Delhi High Court and detailed report of CAG.

According to the CAG, 85 of the 122 licences were given to companies which were not even eligible and as many as 343 applications were not even considered by the DoT,” the petitioners submitted.

They further submitted that even the sectoral regulator has recommended for cancellation of 69 out of the 122 licences as the licencees have failed to roll out their services as stipulated by the condition on which they were given the licences. “The allocation of 2G spectrum and telecom licences made by DoT pursuant to the two press releases issued by it on January 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,” said  the PIL.

It contended that internationally, in most legal systems, transactions tainted by bribery or corruption or made in violation of established norms and procedures are considered illegal and unenforceable.

“The same must be held in this case. In addition, punitive damages must be imposed on companies that made false declarations or which violated their undertakings given to the government,” it said.

(With PTI)