Telecom Lead India: In yet another setback to Indian telecom operators affected by 2G spectrum scam, the Supreme Court on Wednesday dismissed 10 out of 11
review petitions filed by the telcos and others to review various aspects of the recent verdict by the apex court on 2G spectrum allocation.
The Supreme Court’s dismissal of review petition raises a new question in the industry: Is judiciary not concerned about protecting the investment of telcos affected by one of the worst scams involving ministers and top bureaucrats in the country?
Telecom operators including Tata Teleservices,
Sistema Shyam TeleServices (MTS India) and Uninor sought review of the
verdict cancelling their licences.
The life of these telecom operators’ license will depend on the hearing
on April 13. The apex court has listed the Government’s review petition for
hearing on April 13.
The February order had affected around $1.5 billion telecom Capex
plan of licence holders such as Uninor, Loop, MTS, Etisalat, S Tel, Videocon,
Idea Cellular and TTSL.
TTSL, MTS India and Uninor have approached the Supreme Court as
the apex court had ordered to cancel 122 2G spectrum licences granted by A Raja,
former telecom minister of India. According to the Court, the first-come-first-served
(FCFS) policy could not be used for allocation of natural resources.
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Besides telecom operators, the Centre, NGOs and Raja sought the review,
clarification and recall of the Supreme Court verdict.
The Centre has sought review and clarification in the 2G verdict
which held that sanction for prosecution of public servants could be sought
even prior to filing of complaint.
Raja has contended the findings in the verdict against him are bound
to prejudice his defense in the scam trial.
In a separate application, the Centre questioned the Supreme Court
verdict holding as unconstitutional the policy of first-come-first-served,
saying it has entered into the exclusive domain of the executive and beyond the
limits of judicial review.
The review petition has contended the court’s prescription of a
single method for distribution of all natural resources, including spectrum,
through auction route is contrary to the principle of separation of powers
embodied in the Constitution.
Despite the Court verdict, the telecom market in India is coming
back strongly from the rude shock of February 2 Supreme Court order.
Indications are that most of the mobile service providers will
stay back in India as the government is likely to ask apex court to review its
order that affected more than 10,000 jobs and $6 billion investment in telecom
infrastructure. Many operators are assuring that they do not want to quit
India.
