Kinnori
Asked June 24, 2013

effect of 2G scam judgment

  • 2 Answers
  • 176 Views

As we know, by the landmark judgement of the Supreme Court in the 2G spectrum case, the licences given on first-cum-first serve basis has been quashed by the Hon'ble Court, but even after that how can such companies like Siestema Shyam can carry on their business in several circles across the country? has their licences been renewed? What is the current position?

Answers 2

Default avatar
Anirban

As per the judgement delivered in the 2G Spectrum Case, all licenses of Sistema Shyam Tele Services Ltd were quashed. Further, a fine of Rs. 5 million was levied on Sistema Shyam. However, the licenses of these companies remained effective for four months after the delivery of the judgement, as was provided by the Court. According to the judgment, this time period was to be utilized by the government to decide on fresh norms for issuing new licenses.

Thereafter, an auction of the 122 licenses was conducted over a number of days by the Centre. In this particular auction, Sistema Shyam Tele Services Ltd. won airwaves in telecommunication zones, with a sole bid of Rs. 3,639 crore. Thereafter, besides three zones where they earlier owned airwaves, Sistema now operates on all the other zones for which they successfully bid.

Agree Comment 0 Agrees about 4 years ago

Default avatar
Sneha

Sistema Shyam’s , a company involved in the litigation as in the famous 2G spectrum case, licence henceforth was cancelled after the verdict wherein auction was made the appropriate procedure to allocate the Spectrum as a national resource  instead of the ‘first-cum-first serve basis’ and the Chief Executive Officer of the Company was also interrogated by the CBI during the investigation. Sistema Shyam appealed to the Supreme Court to revoke the earlier order to cancel its licenses and thus filed a petition for an exemption from the Order of the apex Court in February  on the ground that the operations of the company where in CDMA and not specifically in 2G  and on the ‘First-cum-first-serve basis’ of the Government allocation, which was subsequently denied.However the Company has managed to bid back in their kitty the spectrum, which had once launched them in the mobile market in India, in eight circles during the auction of the spectrum held in March this year.

Agree Comment 0 Agrees about 4 years ago

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