Duty-bound to auction spectrum, Govt tells SC

The Centre on Wednesday told the Supreme Court that it was duty-bound to auction spectrum in wake of its order.

The Centre on Wednesday told the Supreme Court that it was duty-bound to auction spectrum in wake of its order. Clarifying that its Presidential Reference did not seek review of the SC’s February 2 verdict cancelling 122 spectrum licences, attorney general GE Vahanvati said it was moved as the judgment could impact FDI in other sectors.

HT Image

“The far-reaching nature of this judgment may impact FDI and other investments. This is the dilemma which the government faces.

This, read with the immediately preceding recital, demonstrates (generally speaking) the reluctance of foreign investors to look into India as a safe place for investments. It is this question which is highlighted in the reference,” Vahanvati told a constitution bench headed by the Chief Justice.

Vahanvati said: “If, for instance, the government was to announce a project for discovery and winning of some natural resources such as gas other than on auction basis, foreign investors would be wary, if not reluctant, of participating if there was a likelihood of the project being cancelled or challenged on the ground that the auction principle was not implemented.”

TRAI chairman Rahul Khullar said the hiked price of Rs. 18,000 cr for 5 MHz of spectrum in 1800 MHz band will not impact consumers by more than 5 paise a minute. In the worst case, the hike could be 15 paise in Delhi, if an operator bids exclusively for these circles, TRAI’s report said.