HC vacates stay on cell licence

By Our Staff Reporter

CHENNAI, JULY 31. The Centre's proposal to permit entry of fourth cellular mobile telephone services operator received a shot in the arm with the Madras High Court vacating an interim stay, and allowing the Government to go ahead with the process.

``Bids have been finalised; licence fee obtained; and bank guarantees executed. In view of this, we find no ground to continue the interim order dated July 18'', observed the First Bench comprising the Chief Justice Mr. N.K. Jain and Mr. Justice P. Thangavel today.

The Bench had ordered maintenance of status quo on July 18 on a petition filed by a Chennai-based advocate, Ms. K. Chandra, and also ordered notices to the Secretary of the Department of Telecommunications, and the Telecom Regulatory Authority of India on July 18.

In her petition, Ms. Chandra had alleged that as against the expected target of over Rs. 5,000 crores, the Government could rake in only Rs. 1,290 crores while allotting the airwaves (frequency spectrum) to the fourth cellular licence bidders.

According to her, the prospective bidders for the fourth cellular licence were unaware of details such as the quantum of annual licence fee, interconnection terms, number of operators in a service area and about the scope of the services.

Noting that there was a deliberate attempt on the part of the Government to favour major basic telecom operators, Ms. Chandra said the process deserved to be stalled until the ``prevailing uncertainties'' were adjudicated.

Meanwhile, the Bharath Cellular Limited, a prospective fourth cellular services operator which had been declared as the successful bidder in six of the 17 service areas in the third round of financial bids, had filed an impleading petition.

The company had complained that due to the July 18 order of the High Court, the licence had not been granted to them. It also pointed out that the High Courts in Bombay and New Delhi had refused to grant any interim orders on similar petitions. ``The Bombay High Court had allowed the tender process to continue in accordance with law'', it noted.

The senior counsel appearing for the company, Mr. R. Krishnamurthy, submitted that they must be impleaded as a party and the interim order should be vacated.

The Additional Solicitor-General of India, Mr. V.T. Gopalan, maintained that the petitioner (Ms. Chandra) had no locus standi, and denied the argument that the frequency spectrum was being given at a negligible price. He said that any interference at this stage would only put public interest in peril.

The Bench allowed the impleading petition of the Bharath Cellular Limited and said, ``so far as the stay petition is concerned we find the interim order passed on this petition is based on the status quo order dated June 8, 2001 in which a direction was given to implement the new telecom policy in letter and spirit''.

This matter has to be heard by the Telecom Disputes Settlement and Appellant Tribunal, New Delhi, on merits on September 4, the Bench said. It will not be appropriate for this court to go into the question of any loss to the exchequer, it added.

Asking the Central Government to go ahead with the process, the Judges said that it would, however, be subject to the result in the main writ petition.

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