Airtel, Vi get relief in ₹3,300cr spectrum charge case
What's the story
The Supreme Court of India has refused to stay a Bombay High Court order quashing the government's demand for one-time spectrum charges from telecom companies. The decision comes as a major relief for Bharti Airtel and Vodafone Idea, who were facing a ₹3,300 crore charge for holding spectrum beyond 6.2 MHz between 2008 and 2012. The Centre has now challenged the Bombay High Court ruling in the Supreme Court.
Legal proceedings
Notice issued to telecom companies
A bench of the Supreme Court issued a notice to the telecom companies in response to the Centre's appeal against the High Court judgment.
Appearing for the government, Additional Solicitor General Vikramjit Banerjee said that this dispute was worth around ₹3,300 crore.
Senior advocates Mukul Rohatgi and Shyam Divan represented Bharti Airtel and Vodafone Idea during these proceedings.
Charge dispute
Bombay HC had ruled that retrospective levy has no basis
The Bombay High Court had earlier quashed the Department of Telecommunications' (DoT) December 28, 2012 order and demand notices for the one-time spectrum charge.
The court ruled that the retrospective levy had no contractual or statutory basis.
This charge was related to spectrum held by telecom operators beyond 6.2 MHz from July 1, 2008, to December 31, 2012, with rates based on the prices fixed in a 2012 auction.
Appeal details
Centre challenges High Court judgment in Supreme Court
The Centre has now challenged the High Court's judgment before the Supreme Court, seeking to revive the DoT's demand against Bharti Airtel and Vodafone Idea.
The dispute dates back to the National Telecom Policy, 1999, which saw telecom operators transition from a fixed license fee regime to revenue sharing.
Between 2001 and 2007, various communications were issued for recurring spectrum usage charges.
Policy transition
Union Cabinet approved levy in November 2012
In May 2010, the Telecom Regulatory Authority of India (TRAI) recommended a one-time charge on spectrum held beyond 6.2 MHz for the first time.
The Union Cabinet approved this levy on November 8, 2012, applicable to existing operators holding spectrum beyond 4.4 MHz.
It also decided that spectrum held beyond 6.2 MHz would attract this charge retrospectively from July 2008 onwards.