The Supreme Court made it clear today that whatever action the central government took in the allocation of the 2G spectrum would be subjected to the outcome of the petitions before it.
The judges were allaying the apprehensions of petitioners that the government would let off telecom companies with payment of penalties whereas their contention was that the licences should be cancelled. The petitioners challenge the eligibility of the operators who got it through circuitous routes.
While the hearing of the petitions were adjourned to March 1 awaiting the outcome of the telecom operators’ challenge to the show cause issued to them by the telecom authorities, the judges stated categorically that even if the government took any step in the spectrum allocation, it would not “compound” the problem.
“We cannot be compounded,” the judges told Prashant Bhushan, a counsel for the Centre for Public Interest Petition. They remarked that given the agreement between the government and telcos, licences could not be cancelled at this stage.
Another petition by Janata Party leader Subramanian Swamy is also before the bench, consisting of Justice G S Singhvi and Justice A K Ganguly.
Both petitions have challenged the spectrum allocation in 2008 by the then communication minister A Raja. They have quoted the recent report of the Comptroller and Auditor General (CAG) alleging huge notional losses to the exchequer. During the hearing, the judges observed that the CAG report could not be the only basis for cancellation of licences. The court stated all the issues would be examined in detail.
Bhushan wanted a direction to the government restraining it from regularising the licences of the telecom companies which failed to meet the roll-out obligations. According to him, mere imposition of penalties was not enough, as the licences were obtained illegally. He stated that 85 of 122 entities were ineligible and 69 of these failed to meet the roll-out deadlines.
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His another plea was that in future spectrum and other national resources should be distributed only through public auction, to introduce transparency.
It was stated in the court by government counsel that the telecom companies have moved TDSAT, the tribunal, against the showcause notice issued by the Department of Telecommunications. Those petitions will be heard two weeks hence. Since the outcome of those petitions and the government stand will be made clear there, the Supreme Court allowed the parties to file their affidavits within four weeks, which will be considered on March 1.
Swamy raised concerns of national security in the spectrum allocations. He also raised objections to new Communications Minister Kapil Sibal’s statements about CAG. The judges remarked, “He has stopped making statements”.
Swamy wanted a copy of Justice Patil’s report on irregularities in 2G allocation. The court observed he should approach the appropriate forum for it, implying the court could not grant such a request.