This Article is From Jan 10, 2011

Will 2G licences be cancelled? Supreme Court gets to work

New Delhi: Could telecom giants lose the 2G licences they were given by A Raja? The Supreme Court has decided to study the issue, and has issued notice to both the union government and to 11 telecom companies, including Idea, Tata Teleservices and Aircel.

The licences, awarded in 2008, were grossly and deliberately under-valued by Mr Raja, according to a detailed report by the government's auditor. The same report said Mr Raja cost the government upto 1.76 lakh crores. In turn, the auditor's report cost Mr Raja his job as Telecom Minister in November last year. (Read: What is 2G spectrum scam?)

Two different petitions have asked the Supreme Court to cancel those licences. They've been filed by Janata Party leader Subramanium Swamy and by the Centre for Public Interest Litigation. Both ask that a fresh auction be held for 2G spectrum. They stress that several licensees have failed to meet the terms of their contract or "rollout obligations" and have not launched the services required of them. The court slammed the Telecom Regulatory Authority of India (TRAI) for not stepping in earlier, and observed, "Why hasn't TRAI taken any action. It is the highest regulatory body. What were they doing? Consumers are meant to be the beneficiaries."

"Mr. Sibal is now going about regularising the licences. He has started with the people who have not met the service requirements. Now soon he will regularise the others also because he is saying A Raja is not guilty, and he is rubbishing the CAG report. I have filed a petition against Sibal to restrain him from dealing with 2G matters anymore," said Swamy to NDTV.

Kapil Sibal, who took over from Mr Raja as Telecom Minister, has said recently that licences cannot be cancelled. Mr Sibal has also said that the auditor's report is "completely erroneous." In Mr Sibal's world view, the allocation of 2G spectrum did not result in any losses at all. Petitioner Mr Swamy said, "I have asked that Kapil Sibal be restrained from dealing with this matter because he is protecting those companies who got licences in this irregular way." (Read: CAG's Rs. 1.76 lakh crore figure is 'completely erroneous', says Sibal)

That stand has been slammed by different Opposition parties, who all want a Joint Parliamentary Committee (JPC) to investigate the 2G scam. The government has held that's impossible. As a compromise, the Prime Minister has offered to answer 2G questions posed to him by parliament's Public Accounts Committee. Not good enough, says the Opposition, arguing that the PM cannot choose what forum to appear at. The Opposition also stresses that the mandate of the Public accounts Committee does not allow it to examine more complex issues like corruption in the government and governance.
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