SC Orders Stop Operation to Companies Missing Renewed 2G Licenses

Permits of certain telecom companies were revoked by the Supreme Court of India and the court has now ordered the companies whose licenses were revoked and who did not acquire spectrum license for 2G to stop their services immediately. The companies who have acquired licenses in November, 2012 auction can, however, continue rendering their services.

The judgment to cease operations with immediate effect, in case of failure to obtain licenses was passed by a two member bench, consisting of Justice KS Radhakrishnan and Justice GS Singhvi. The court also allowed companies to resume services, whose licenses were revoked in2nd February 2012 ruling. However, the companies are required to pay the base price fixed for the spectrum by the Government to resume services.

The telecom companies which were not successful in bidding in the recent auction and those companies whose licenses are terminated and did not participate in the recent auction were asked to cut-off their services immediately. The successful bidders in the recent auction will offer their services in respective circles. The court also made it clear that the verdict passed by the court on February 2, 2012 does not apply to 900 MHz band of spectrum. The court also noticed that 900 MHz band of spectrum was not a subject matter to it and that the judgment does not have any effect on it.

The court has also directed the Government to put all spectrums that were cancelled to auction. The recent judgment implies an end to Sistema Shyam Teleservices Ltd. The company did not participate in the auction that was held in November.