The submission was made by the Ministry of Information and Broadcasting (I&B) in an affidavit filed in response to the notice issued to it on the plea of Digital Radio Broadcasting Ltd, which runs Red FM, and has sought permission to participate in the auction or to stay it.
The court, yesterday, while issuing notice to the government had allowed Red FM to participate in the mock auction.
"The scope of the present petition cannot be stretched and this court cannot transgress the limits by sitting on appeal over the action of the government based on the input from intelligence agencies in denying security clearance to the petitioner," the Ministry has said in its affidavit.
The government has also said that its discretion to deny the security clearance is well founded and is in the national interest.
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The affidavit also states that MHA has material available with it, on the basis of input received and also on the basis of the information furnished by the company in their application, to deny security clearance to it.
The government has also said that security clearance was declined to Digital Radio on the basis of inputs received against former Telecom Minister Dayanidhi Maran, Kalanithi Maran and Sun TV.