CAG report can't be only basis for cancelling Spectrum: SC

New Delhi, Feb 1 (PTI) The Indian apex court on
Tuesday made it clear that the CAG report cannot be the only
basis for cancellation of allocation of the 2G Spectrum and
said all government decisions, including regularisation of
the licences of erring telecom companies, would be scrutinised
by it.
It said that any decision taken by the centre on the
2G spectrum would be subject to the outcome of the petitions
pending before it.
"Everything they (government) do after the filing of
the petitions is subject to the outcome of the petitions," a
bench comprising Justices G S Singhvi and A K Ganguly said.
"We do not know what they are doing. But if they do,
it is subject to the outcome of our order," the bench said.
The remarks of the bench came on the plea by an NGO
Centre for Public Interest Litigation (CPIL), which was
seeking a direction to the government for restraining it from
regularising the license of the telecom companies which failed
to meet the roll-out obligations.
The NGO's counsel Prashant Bhushan said that the
government was regularising the licenses of the companies by
imposing penalties on the companies.
The bench further said, "If the licenses are going to
be cancelled, it cannot be cancelled only on the basis of the
CAG report."
Senior advocates Harish Salve, Abhisekh Manu Singvi,
Soli Sorabjee and others appearing for various telecom
companies, contended that CAG report, which had estimated a
presumptive loss of Rs 1.76 lakh crore to the exchequer in
allocation, has been the basis for the cancellation of 2G
spectrum.
They said it has already been pointed out by the
government that there could be a host of errors in the
computation of loss by the CAG.
Attorney General G E Vahanvati said that the issue of
regularisation of licences was pending before TDSAT and he
sought three weeks to respond to the issue so that everything
can be brought before the bench in clear terms.
Bhushan pressed for urgent interim orders to be passed
restraining the government from regularising the licences by
imposing penalties against the companies which failed to meet
the roll out obligation.
The court was hearing two petitions filed by CPIL and
Janata Party chief Subramanian Swamy seeking cancellation of
the licenses of 2G spectrum allotted during the tenure of
former Telecom Minister A Raja on the ground that there
were large scale irregularities on the allocation.
The CPIL has also filed separate application against
the government policy of regularising the licences on payment
of penalties by the companies.
During the hearing, Bhushan submitted that the
CPIL has raised five grounds for cancellation of the licenses
of 2G spectrum.
He said the spectrum were allocated without auction at
the price prevailing in 2001 and the cut-off date was advanced
which resulted in the elimination of two-third applicants.
Further, 85 out of 122 entities were ineligible
operators and 69 of them failed to meet their roll-out
obligations, Bhushan added.
The bench said all these factors will be considered at
the time of hearing.