SC grants time to Centre to withdraw cases against telecos

New Delhi: The Supreme Court on Tuesday granted time to the Department of Telecom (DOT) till November 17, to consider withdrawing legal cases against telecos, involved in the dispute of about Rs 40,000 crore.

A bench of Justices MR Shah and AS Bopanna listed the matter on November 17 after Solicitor General Tushar Mehta said that an affidavit has been filed by the government in which they have said that it is considering withdrawing the cases looking at the financial implication on the stressed telecom sector. He sought three weeks' time to file the reply on the issue and enable the government to take a decision in this regard. The bench noted that the Union of India had filed an affidavit on October 4 seeking three weeks' time.

In the affidavit, it is stated that the amount involved, which is the subject matter of adjudication, would be the imposition of financial liability on various Telecom Service Providers to the tune of Rs.40,000 crores (approx.) It is further stated in the affidavit that in view of the subsequent developments, the Central Government is reviewing and/or reconsidering the decision to proceed with the present proceedings of appeal, it said.

The bench said that without expressing anything on such proposed action/decision, which might have a larger implication, it is adjourning the matter to November 17.

The Centre filed the affidavit in the appeal against Reliance Communications in which it has challenged the February 4 order of Telecom Dispute Settlement and Appellate Tribunal (TDSAT) by which it has quashed a government decision to charge for additional spectrum allocated to RCom.

The Tribunal had asked the telecom Department to return Rs 2,000 crore to the company.

The Union cabinet in 2012 had decided that operators should pay for holding spectrum above 6.2 MHz retrospectively, from July 2008 to January 1, 2013. For spectrum above 4.4MHz, they would have to pay for the remaining period of their licences starting January 1, 2013.

The Centre in its affidavit said that the amount involved, which is the subject matter of adjudication, would be the imposition of financial liability on various Telecom Service Providers (TSP) to the tune of Rs 40,000 crore

approximately.