Now Reading: SC refuses stay on Rs 3,300 crore spectrum charge quashing
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SC refuses stay on Rs 3,300 crore spectrum charge quashing
The Supreme Court on Friday declined to stay the Bombay High Court order that set aside the government's demand for Rs 3,300 crore in one-time spectrum charges from Bharti Airtel and Vodafone…
The Story in Brief
The Supreme Court on Friday declined to stay the Bombay High Court order that set aside the government's demand for Rs 3,300 crore in one-time spectrum charges from Bharti Airtel and Vodafone Idea. The high court had ruled that the retrospective levy, imposed on spectrum held beyond 6.2 MHz between 2008 and 2012, lacked contractual and statutory basis.
The top court issued notice on the government's appeal but refused to block the release of bank guarantees tied to the demand. Airtel estimates its total relief at Rs 8,414 crore, while Vodafone Idea says demands of Rs 2,113 crore were quashed. The companies had accumulated provisions and interest liabilities running into thousands of crores. The Supreme Court will now hear the case.
The Indian Opinion
Both sides have reasonable points but also overreach. The government argues spectrum is a precious resource leased below market rates, true, but retrospective levies without contractual basis are arbitrary, as the high court found. Telcos cry foul over retrospective demands, yet they paid far below current auction prices for years. The real test is whether the Supreme Court will uphold a forward-looking charge, as TDSAT suggested in 2019. Until then, this is a temporary reprieve, not a final victory for either side.
Sources (2): telecom.economictimes.indiatimes.com, livemint.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
