Declaring the allocation of 2G spectrum by the Congress-led United Progressive Alliance (UPA) government “illegal” and an example of the arbitrary exercise of power, the Supreme Court on Thursday cancelled all 122 telecom licences allotted on or after January 10, 2008 to 11 companies during the tenure of the former telecom minister, A. Raja.
Click here for a .pdf of the Supreme Court order
Click here for a .pdf of the graphic
Holding that spectrum was a natural resource, the court said natural resources “are vested with the government as a matter of trust in the name of the people of India, and it is the solemn duty of the state to protect the national interest, and natural resources must always be used in the interests of the country and not private interests.”
Allowing writ petitions filed by the Centre for Public Interest Litigation and others and Janata Party president Subramanian Swamy seeking the cancellation of the licences, a Bench of Justices G.S. Singhvi and A.K. Ganguly said: “The licences granted to the private respondents — Etisalat DB Telecom (Swan Telecom); Unitech Wireless; Loop Telecom; Videocon Telecommunications; S-Tel Ltd; Allianz Infratech; Idea Cellular and Aditya Birla Telecom (Space Communications); Tata Teleservices; Sistema Shyam Tele Services (Shyam Telelink); Dishnet Wireless; [and] Vodafone Essar South — on or after January 10, 2008, pursuant to two press releases issued on January 10, 2008, and the subsequent allocation of spectrum to the licensees are declared illegal and are quashed.”
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 Tatas, 13 of Swan and two of Allianz.
The Bench did not order a CBI probe against P. Chidambaram, then Union Finance Minister (now Home Minister), as demanded by Dr. Swamy, taking note of the fact that he had already filed a private complaint in a special CBI court which had reserved orders.
It was Dr. Swamy's contention that Mr. Chidambaram had played a major role in fixing the prices for the spectrum licence, along with Mr. Raja, and in the dilution of shares by two telecom companies to foreign firms. The Bench asked the special court to decide the matter uninfluenced by the proceedings in the Supreme Court.
The court rejected the plea for setting up a special investigation team (SIT) to monitor the probe in the 2G case. Instead, it asked the CBI to submit its probe report to the Central Vigilance Commission (CVC) for scrutiny. The CVC would then file its report to the Supreme Court. The Bench said the Supreme Court would continue monitoring the probe.
The Bench made it clear that the cancellation of the licences would become operative only after four months. “Within two months, the Telecom Regulatory Authority of India (TRAI) shall make fresh recommendations for [the] grant of licence and [the] allocation of spectrum in [the] 2G band in 22 service areas by auction, as was done for the allocation of spectrum in [the] 3G band. The Central government shall consider the recommendations of the TRAI and take an appropriate decision within the next one month, and fresh licences be granted by auction.
“While Etisalat; Unitech and Tatas who were benefited by a wholly arbitrary and unconstitutional action taken by the DoT [Department of Telecom] for grant of UAS licences and allocation of spectrum in [the] 2G band and who off-loaded their stakes for many thousand crores in the name of fresh infusion of equity or transfer of equity shall pay cost of Rs.5 crore each, respondent Nos. 4 [Loop Telecom], 6 [S-Tel], 7 [Allianz Infratech] and 10 [Shyam Telelink] shall pay cost of Rs.50 lakh each, because they too had been benefited by the wholly arbitrary and unconstitutional exercise undertaken by the DoT for the grant of UAS licences and allocation of spectrum in [the] 2G band.”
The Bench held that there was a fundamental flaw in the first-come, first-served principle, inasmuch as it “involves an element of pure chance or accident.”
It said: “In matters involving award of contracts or grant of licence or permission to use public property, the invocation of the first-come, first-served principle has inherently dangerous implications.”
Comments:
Can someone comment where the money of 'collective loss of 9000 crores'
has gone ? Is it with government or with Raja or with mobile companies ?
If it is at wrong place then why can't supreme court pass a directive to
collect it back? No such rule ?
This government looted the country beyond imaginable. This is being now endorsed by court one by one.Hence as a head of this government. Mr.M.M.Singh has no business to continue in office even a single minute. He is the sole responsibility for his inaction and kept mum so far and not does anything despite the scam after scam committed under his nose.If things are continued like this even God can't save our country.
The judgment is a strong note to all Policy Makers (both Politicians & bureacrats) to adhere to the law in executing all programmes/schemes of Govt. in a fair & transparent manner for the welfare of the country atleast in future.
A similar illegal 3G roaming deal is doing the rounds now.Private operators who does not have spectrum in a state(circle) shares it with someone who has and they return the favor in an another state(circle)where they have the spectrum.That is without having spectrum , they give 3G service.Think how much loss that makes to the exchequer.Our country has become a paradise of corruption now.Only people who suffer seems to the common man,who lives genuinely,pays tax and abide by all laws,99 percent belong to this category, all others are comfortably looting and getting away.Pathetic
I wholeheartedly welcome the SC order. "A well deserved decision" for all the telecom companies who were benefited by yielding fruit from this poisonous tree. Last but not the least, a special thanks to Mr.Subramanium Swamy for taking up a special interest towards the 2G spectrum case.
What a judgement,The Supreme Court has proved that it is really SUPREME.If you study the 39 page Judgement,you will clearly see that the 2-G License distribution was a real shame on the part of the Telecom Minister and UPA for the way it has been conducted.I am not criticizing UPA for this,but ultimately it is the party which has be blamed for neglecting such an issue. It is a land mark judgment making common people strong to fight corruption on induvidual basis without waiting for any type of help from any quarter whatsoever. As long as one is not caught one is a gentleman and honoured. Ofcourse, now it has become a fashion to have continuous honour despite court finding fault with such people. Now people who have to vote in the present election in the remaining 3 states to decide whether the UPA II is believable. Let the people decide upon.
Will someone please now file a PIL to initiate court enquiry into a) The KG Basin Gas deal and b) The AIR INDIA aircraft purchase c ) The NTPC coal import /purchase deals d) the Antrix-Devas deal . Cans of worms are awaiting to be discovered ,so that the deals can be nullified for the larger benefit of the nation . Those in the media may also make note and raise these issues without further delay.
Where is the Money that these Companies had Paid as License fee??
Does anybody knows ?
The negative side of democracy is clearly seen here. What the UPA government could not do, SC stepped in to do. Now there are chances, these affected corporates who had lost so much bribe money might open up and say they paid this & this money to such and such person.
To avoid monopoly we need competition, to avoid competition on corruption it seems that we have to switch over to monopoly back. India is shining... who knows how ?
Supreme court is the supreme hope for the country. The decision gave super hope for this nation. Jai Hind.
Yes Supreme court might not have directly implied the PM and his govt . But , every citizen must ask why PM and his govt allowed it to happen and then supported Raja until the Supreme court interfered. The answer in PM`s words itself is - COMPULSIONS OF COALITION POLITICS. . so what is the compulsion ? nothing but to be in the power . is it not corruption ? ( corruption is defined as something that is exchange of favours against the law of the land ) i am really surprised why even our supreme court did not take notice of this point and atleast did not even make a passing remark which would have sent a message to the inevitable co-alition politics in this country either in the states or at the centre. Dear Friends , why can`t all of us make an appeal to the judiciary or to civil fighters like BHUSHANS & SWAMYS ?
If the Government does not consider it as an indictment of its actions, it is difficult to imagine what more could have been done on the judicial side. On the one hand the persons responsible have been made to face prosecution while the license distribution has been cancelled on the other.
Shall we say the failure of Under Pressure from Alliance (UPA) government gives a clear message across the nation that,perching on power sacrifysing the sanctity of the very costitution can't fool the public for long.With out swaying to the pressure of Rajas from Tamilnadu our UPA must have ordered a probe-the moment the PM felt that something was fishy , yes even at the cost of grounding the Ministry and sought public verdict again.This historical verdict should become a lesson for all coaliting state governments as well-that completing five year will be quite immeterial unless the sanctity of the oath taken is upheld in letter and spirit.If the so called pressure from daily cleavaging groups are so mounting better to tell the public in the open that' we are surrendering in front of you voters for reasons.....'Let the public feel what type of pressure it was so that the people can deal with such pressure groups through ballot when time comes.
Congress party's position on the SC judgement is that 1) the policy is NDA's and 2) It is Raja who did it all. For the first, 2001 and 2008 are not the same, technology market changes every day! And yes, if UPA thinks NDA can be sued, please go ahead and sue them. Next if Raja is the one who did it all, either the Council of Ministers are incapable or culpable - there is no other possibility.
If any one deserved padma awards , it is Mr Subramaniam Swamy, for his perseverance, single minded doggedness, courage to tack the case to the Apex court, kept the issue alive and forced the Executive and the Judiciary to wake up and render justice.
The Prime Minister and his cabinet should take ownership for the whole mishandling of the issue and answer the Apex court. It will not help to make A.Raja a sacrificial goat and escape. All the corporates too should face the heat.
Now India ruled by judges not elected people. where was Dr. swamy when 2G allotted to Airtel not given even to the BSNL. If only allotted to the experience in that line how competitions arise how people will be benefit by the lower tariff rate
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The cat has come out of the bag much to the discomfiture of the centre.The verdict cancelling 122 licences has confirmed that all is rotten belying the statements made by PM and the ministers in Parliament.The Left party had rightly cautioned the nexus between the corporates, buracrates and the Centre that wrecked unsurmountable damage to our economy. To make Raja a fall guy is transgressive of truth. The whole system including the deafening silence of PMO owes an explation to all the citizens of India. Sare Jahaan se bura, Hindustan Hamaara!