The government has told the Supreme Court that the Cabinet will take a call on withdrawing its appeal against a telecom tribunal order, which backed the stance of telcos that one-time spectrum charge (OTSC) should be levied only prospectively.
A two-judge bench headed by Justice MR Shah granted two weeks to the government, represented by Solicitor General Tushar Mehta, and scheduled the next hearing for December 2.
In an affidavit filed before the previous hearing, the Department of Telecommunications (DoT) said the government was “desirous of reviewing and/or re-considering” its appeal proceedings and sought more time to firm up its view.
In its October affidavit, DoT said the OTSC matter involved a levy of around Rs 40,000 crore in a sector where telcos were making losses.
DoT received legal opinion that it has the power to settle cases such as that over OTSC, out of court. If the Cabinet decides to withdraw the telecom department's appeal, Bharti Airtel and Vi stand to gain most, since their OTSC liabilities get reduced.
In July 2019, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) backed the operators’ appeal in ruling that the OTSC could be levied prospectively, not retrospectively, and there needed to be a mechanism to surrender airwaves. DoT, which wanted to levy the charges retrospectively as well, appealed against the order in the top court, which has not stayed the TDSAT ruling.
The OTSC tussle began after the SC cancelled 122 telecom permits in 2012 in connection with the 2G scam, declaring airwaves as public goods best sold through an auction.
