JOIN USCentre keen to review decision to pursue Rs 40,000 crore spectrum usage charges, SC told
The Centre on Tuesday told the Supreme Court that it was reconsidering its decision to pursue its appeal to recover Rs 40,000 crore from telecom companies for spectrum usage charges as most of them were facing losses and could become unsustainable, resulting into a monopolistic situation and other adverse impact on the economy.
A bench presided over by Justice M R Shah, however, took a dim view of the Union government's plea for time to take a considered stand on the issue, saying the matter involved public interest.
On a request by Solicitor General Tushar Mehta, the court put the matter for consideration on November 17.
In an affidavit, the Telecommunication department submitted that the Telecom sector was passing through financial stress for some time due to various circumstances.
"Despite certain measures, taken by the government in public interest, most of the TSPs providing for mobile phones and broadband have been making losses," it said.
The department also pointed towards Indian Bank Association's written communication stating adverse developments in the sector may lead to failure, vanishing competition, duopoly, unsustainable operations and severe loss to the banking system which has a huge exposure to the sector.
It also referred to the Cabinet decision taken on September 15 to provide various reliefs to the sector.
The government said, "it was desirous of reviewing or reconsidering its decision to proceed with the appeal in the matter" in view of various developments, facts, financial positions and implications of potential results.
It sought time to take an informed decision whether to proceed with the appeal or not.
The government has challenged the TDSAT’s July 4, 2019 order that held as unsustainable the DoT demands for One Time Spectrum Charges (OTSC) on spectrum allotted beyond start-up spectrum and up to the contracted limit of 6.2 MHz.
The TDSAT had also ruled that the government can charge the one-time spectrum charge only prospectively from January 1, 2013 (the date on which the government notified this decision) and that too only on administratively allocated airwaves beyond 6.2 MHz.
The decision to levy OTSC was taken by the United Progressive Alliance government following the Supreme Court's decision in February 2012 cancelling 122 telecom 2G licences given by the then telecom minister A Raja.
Watch latest videos by DH here: