Govt moves SC against scrapping of 2G licences

New Delhi: The Government on Friday moved the Supreme Court seeking review of its verdict cancelling 122 2G spectrum licences. In its review petition the Centre also asked the apex court to reconsider its earlier ruling barring the Government from allocating natural resources such as airwaves on a first-come-first-serve basis.

Former telecom minister A Raja also moved the Supreme Court seeking review of verdict on 2G license cancellation and the court indicting him.

Faced with a June 2 deadline when 122 licences for 2G spectrum will stand quashed, Government on Thursday moved the Supreme Court stating that it will impact over 69 million mobile users as the auction process for radio waves will take at least 400 days.

The Telecom Ministry virtually sought extension of time for cancellation of licences in its application for clarification of the apex court's earlier verdict quashing the 2G licenses allocated during the tenure of former telecom minister A Raja.

The apex court on February 2 cancelled the 122 telecom licences allotted on or after January 10, 2008. All additional spectrum given to incumbents on or after January 10, 2008 have also been cancelled.

While cancelling the licences the Supreme Court ruled that 85 out of the 122 licences were outside the eligibility criteria for allocation. The apex court said that the 122 licences for 2G spectrum were granted in an arbitrary and unconstitutional manner.

The licences, which were allotted by former telecom minister A Raja, will be cancelled in four months from now and the Telecom Regulatory Authority of India (TRAI) must go in for a fresh issue of licences during this period, the apex court observed.

The licences cancelled include 21 of Videocon, 22 of Unitech Wireless Ltd (Uninor), nine of Idea, 21 of Loop, six of S-Tel, 21 of Sistema, three of Tata, 13 of Swan and two of Allianz.

A penalty of Rs 5 crore has also been imposed on Unitech Wireless Ltd (Uninor), Swan Telecom and Tata Telecom. A penalty of Rs 50 lakh has also been imposed on Loop, S-Tel, Allianz and Sistema Shyam.