MUMBAI: In a relief to cellular service operators, Bharti Airtel and Vodafone Idea, the Bombay HC quashed the Centre’s one-time spectrum charge imposed unilaterally in 2012, from 2008 onwards, reports Swati Despande.Govt can’t retrospectively alter the financial terms of telecom licences years after they had been granted, said a division bench of Justices Manish Pitale and Shreeram Shirsat on Monday. Telecom operators had paid for the spectrum in a revenue-sharing regime under NTP 1999, said HC, adding that introducing an extra charge years later amounts to changing the deal, and the government was unable to justify its action for a one-time spectrum charge retrospectively.
Spectrum case: HC sets aside notices sent to telcos
Bombay HC also set aside the consequential demand notices issued to telecom operators and directed authorities to return the bank guarantees furnished following interim orders. The retrospective demands cumulatively crossed Rs 6,000 crore for the two companies, it was later disclosed.The levy by the department of telecommunications was on holdings beyond 6.2 MHz made, retrospectively applicable from July 1, 2008. Senior counsel Harish Salve for Airtel and senior counsel Aspi Chinoy for Vodafone argued it was against legal principles and contractual arrangements. HC agreed and held that the government could not unilaterally rewrite their financial terms after the operators had accepted and acted upon them.Anil Singh, additional solicitor general, said the charge was justified towards ‘revenue maximisation’ in public interest. The court said what can be said to be in public interest would depend on facts and circumstances of each case. It said the Centre unilaterally imposed the levy and that too, without any source of power identifiable in the terms and conditions of the contract or the relevant statutory provision.Under the NTP-99, the basis of payment of the licence fee underwent a radical change, and now the license fee was stipulated to be paid on a revenue-sharing basis. The operators would also have to pay specific amounts for using the spectrum, and this, too, would be based on revenue sharing, HC noted.
