Govt yet to take presidential reference call

The Supreme Court’s judgment cancelling 122 telecom licences has the government in a bind.

Though the Union Cabinet had discussed the proposal at a meeting held two weeks ago, it is still undecided about seeking a presidential reference.

R Chandrasekhar, telecom secretary, told DNA the government is still in the process of seeking legal opinion on the matter. “It (presidential reference) is under consideration, but no decision has been taken,” he said.

Admitting that the SC order has thrown up quite a few questions, the secretary said there are some that “warrant going to the SC in the form of presidential reference.”

“Ordinarily, a presidential reference is sought if there are questions of law that have arisen, which are important enough and require the view of the SC,” said Chandrasekhar.

The government as well as telecom companies found themselves at the receiving end after the cancellation as the top court ruled that the first-come-first-serve method adopted by the former telecom minister, A Raja, was faulty.

Clearly, the government is hedging its bets as it has already filed an interlocutory application (IA) in the SC, indicating it is the roadmap to implement the court’s order specifying the timeline and schedule for the licence and spectrum auction. In its submission, the Centre has conveyed that it would complete the auction process in 400 days as against the deadline of four months. Besides, the government has gone for a review petition challenging the apex court’s jurisdiction over policy matters.

Chandrasekhar said the government is exploring all the legal options open to it to resolve the issues relating to the cancellation of licences and “acting in a manner which was not contrary to the SC order”.

The stakes seem to be extremely high, given huge investments in the telecom sector. Biggies like Norwegian Telenor and Russia’s Sistema, which are keen on pursuing opportunities here, have approached the government to ensure their interests are safeguarded. But Chandrasekhar was measured in his words, saying the government would do whatever was “consistent with the court order”.   

“At this point, the question of safeguarding the interests of any of the 122 licences by the government does not arise. Of course, they are always at liberty to approach the court in whatever manner they deem fit. Now, whatever further directions are to be issued will have to come from the court. In the absence of any direction from the court, we cannot act in a manner that is not consistent with the court order,” he said.

In its Budget for the next fiscal, the government has estimated to raise Rs40,000 crore through the auction of 2G, 4G and BWA spectrum.