India's top court declines review of 2G licenses cancellation

India's Supreme Court had ordered in February that 122 mobile licenses should be cancelled

India's Supreme Court has declined to review its earlier order to cancel 122 mobile licenses in 22 service areas, that will affect the Indian joint ventures of Telenor, Emirates Telecommunications, NTT DoCoMo and Sistema.

The court ordered in February that the licenses granted in 2008 should be canceled in four months as there were irregularities in the allotment of these licenses which were sold at basement prices.

The foreign companies which invested in Indian companies that bagged the licenses paid in contrast whopping sums for their stakes, the Supreme Court said.

The affected companies like Telenor and Sistema are also exploring other options including invoking bilateral treaties between governments.

Sistema's joint venture said after the order on Wednesday that it had filed the review petition to protect the interests of more than 16 million customers and investments of over US$3.1 billion. It said it was currently deliberating its future course of legal action.

"We have carefully perused the review petitions and the record of the case and are satisfied that the impugned judgment does not suffer from any legal infirmity warranting reconsideration of the issues decided therein," the Supreme Court said in one of the orders while rejecting the review petitions from seven telecommunications companies this week.

The Supreme Court will however consider a petition from the government which among other things seeks clarifications on the powers of the executive to decide to allot licenses without an auction, a practice it already follows in some other industries like mining.

The court ordered in February that the Telecom Regulatory Authority of India should auction the licenses, and some of the companies that were deprived of their licenses by the order are expected to bid in the auction.

Sistema's Indian joint venture last month passed a resolution to double its authorized capital to about $2 billion, leading to speculation that it may bid for licenses in the auction. The joint venture stands to lose 21 of its 22 licenses in the country as a result of the cancellation ordered by the court. There will not be a change in the voting equity structure of the joint venture as a result of the increase in its share capital, Sistema said.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments


James Cook University - Master of Data Science Online Course

Learn more >


Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >



Back To Business Guide

Click for more ›

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?