Supreme Court Allows DoT to Finalise Spectrum Auction Results

The apex court said the finalisation of the auction was subject to the outcome of matters pending before it, in which the legality of the "design of the notice inviting tender (NIT)" for the spectrum has been challenged by major telecom players including Bharti Hexacom Ltd and Reliance Telecom Ltd.

However, a bench comprising Justices Dipak Misra and P K Pant said it was "inclined" to modify its February 26 order by which it had allowed the scheduled commencement of auction from March 4, with the condition that "the same shall not be finalised without the leave of this Court".

"We are inclined to modify our order and give Union of India the liberty to finalise the auction and proceed further. All the successful bidders have to be instructed (by the government) that the auction on finalisation will be subject to the outcome of cases (before it)," the bench said.

The order allowing government to finalise the auction result would immediately lead to upfront payment of over Rs. 28,000 crores in state exchequer by the successful bidders.

It said government would ask all the successful bidders to implead themselves as party in the matter in the apex court after information about the auction which concluded yesterday is made public.

"Needless to say that they (successful bidders) are under obligation as per the law for impleadment, as any order is likely to affect them. The impleaded parties shall file their respective affidavits stating their stand in the affidavits," the bench said while posting the matter for hearing on April 16, when several other issues questioning the legality of the auction process would be examined.

The apex court on February 26 had allowed the government to go ahead with the auction of spectrum of bands 800MHz, 900MHz, 1800MHz and 2100MHz for all states, which according to Attorney General Mukul Rohatgi witnessed a "fiercest" auction fetching a revenue of Rs. 1.09 lakh crores.

Rohatgi said if the order of stay was not modified, the Centre would face difficulties in collecting earnest money of Rs. 28,000 crores by March 31 emerging from the auction, in which the successful bidders have to deposit the amount within 10 days.

The apex court had stayed the proceedings before various High Courts and decided to hear on priority basis a batch of petitions raising various issues against the tender conditions for the auction of 2G and 3G spectrum.

The apex court had transferred the petitions filed by private telecom operators from High Courts of Allahabad, Karnataka and Delhi to itself.

The Attorney General had submitted that the High Courts should not interfere in an "informed policy decision" on the auction of air waves having bearing on government revenues.