The Supreme Court of India has ruled the companies, whose permits were revoked by the court and have failed to get new 2g spectrum licence in the recent auction, will have to cease their operations immediately. The court, however, allowed the telecom companies, which were able to win licences in the November auction, to start their services in their respective circles.
A two-member bench including Justice GS Singhvi and Justice KS Radhakrishnan said the companies that have been allowed to resume operations after revoking of their licence in February 2, 2012 ruling will have to shell out the base price fixed the licences in November 2012 auction.
"The telecom companies which have been unsuccessful in the bidding and those after the cancellation of the licences did not participate in the fresh auction are directed to cease from continuing from operation forthwith and the successful bidders will immediately start in their respective circles," the court said.
The Supreme Court bench also made it clear that the February 2, 2012 verdict does not apply on telecom companies having spectrum with 900 MHz band. "The February 2, 2012 order will have no bearing on litigation relating to 900 MHz band," the bench said, adding that it (900 MHz band spectrum) was not the subject matter before it.
The court also directed the government to put all the spectrum freed up after the cancellation of the licences on auction.
The latest SC verdict means an end of road for Sistema Shyam TeleServices Ltd (SSTL), which was one of the companies that didn't participate in November auction. The company, however, has filed a petition seeking more time as it plans to participate in March auctions.