SC allows Centre to announce winners of spectrum auction

NEW DELHI: The Supreme Court today allowed the Centre to announce the winners of spectrum auction and receive the first instalment of Rs 28,000 crore after making it clear to the successful telecom companies that the deal would be subject to the outcome of the pending litigation.

R Sedhuraman

Legal Correspondent

New Delhi, March 26

The Supreme Court today allowed the Centre to announce the winners of spectrum auction and receive the first instalment of Rs 28,000 crore after making it clear to the successful telecom companies that the deal would be subject to the outcome of the pending litigation.

A Bench comprising Justices Dipak Misra and PC Pant passed the order as Attorney General Mukul Rohatgi pleaded that the first instalment of payment was crucial for reducing the deficit in the current financial year (2014-15). The total auction amount was Rs 1,09,000 crore, the AG said.

The proposed receipts had already been factored in the Budget while calculating the deficit and as such any delay in collecting the payment would seriously affect the government’s plan to bridge the gap, he said.

Appearing for the telecom companies, senior advocate P Chidambaram opposed the government’s plea. The existing licences of the telecom companies were valid till the end of this year. Further, the auctions closed only last evening and under the auction conditions the telcos could take 10 days to pay the first instalment which meant they had time till April 4.

If the companies made the first payment after March 31, how would the government use it for meeting the Budget goals for the current fiscal, he asked. Further, the government had already collected Rs 24,000 crore as earnest money, he said.

The AG, however, said the government would plead with the telcos and convince them to make the payments in the next 4-5 days. The earnest money was not in cash and as such would not be of help in meeting the Budget target.

Spectrum bids won’t result in high call rates: Prasad

Telecom Minister Ravi Shankar Prasad on Thursday ruled out an increase in the telecom call rates because of the record auction bid for spectrum services that received offers of Rs 1.09 lakh crore.

"I am seeing a huge campaign that mobile rates will go up. A person familiar with telecom industry has given me analysis. The spectrum will be with operators for 20 years.

"As per the analysis, the yearly load on operators is going to be about Rs 5,300 crore...and 1.3 paise per minute call," he said. He was countering reports of industry experts terming the auction-determined spectrum as very high that will lead to hike in mobile call and other services rates. — PTI