Senior government ministers and officials on Friday discussed whether they should go in for a "Presidential reference" seeking clarification if telecom licences given on a first-come-first-served basis before 2008 should be cancelled.
Lawyers say that the government can make a Presidential reference in a question of law or matter of public importance. The court will communicate its view to the President after due procedures.
Senior legal sources in the government said no decision was taken and a conclusive view would be arrived at only after the results of the Assembly elections were out on March 6.
The thinking in the government is the political climate has to be conducive to be able to withstand the outcry by the opposition if the dispensation takes any radical steps.
If the ruling United Progressive Alliance fares poorly in the elections and a Presidential reference results in another adverse judgment for the government, the move will have profound implications for the government's standing. This is why a 360-degree view of the implication of every move whether a review petition, asking the Supreme Court to review its own judgment by the same bench; or a Presidential reference will require intensive political management.
The meeting was held in North Block and chaired by Finance Minister Pranab Mukherjee. Communications Minister Kapil Sibal, Solicitor General Rohinton Nariman, Deputy Chairman of Planning Commission Montek Singh Ahluwalia and Law Minister Salman Khursheed attended. Attorney General Goolam E Vahanvati was out of town was unable to attend the crucial meeting. Just a few weeks ago, the Supreme Court had cancelled 122 licences given out in 2008, saying the policy of first-come-first-served basis of the Government is not tenable.
The judgment had raised a serious concern within the government as it could mean the cancellation of 73 more licences that were given between 2004 and 2007 and in 2001, based on the same policy. The decision would impact virtually the leading incumbents. It would also have serious impact on the country's telecom landscape as the number of players in each circle would fall to seven from 12.
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The government has had a series of meetings after the Supreme Court judgment to discuss how to deal the new challenge. On February 11 there was a meeting under the aegis of Prime Minister Manmohan Singh, where he was briefed by Sibal.
In the presentation, the communications minister raised some key issues on which legal opinion would be required if all licences given on a first-come-first-served basis should be cancelled; what is the impact of the judgment on 3G spectrum holders whose 2G licences have been cancelled; how to deal with dual technology players; and if older players need to be charged for 0 to 4.4 mhz also.
Sibal had also pushed for an extension of the four-month deadline for holding the 2G auction, as directed by the court, saying that it would take at least 400 days.
However, other wings in the Government were of the opinion that while an extension might be granted by the court, it could decide to monitor the progress of the auction on a regular basis.