Spectrum bidding for N-E: Centre moves SC against Tripura HC interim order

New Delhi: Centre today approached the Supreme Court seeking stay on the interim order passed by the Tripura High Court allowing telecom firms Bharti Hexacom Ltd and Reliance Telecom Ltd to submit two bids for a total of 8.8 MHz spectrum in the North East circle.

The matter was mentioned before a bench headed by Chief Justice HL Dattu which said that the special leave petition will be heard tomorrow.

“There is no need for urgent hearing. We will hear the matter tomorrow,” the bench, also comprising Justice AK Sikri, said.

In its plea filed through Additional Solicitor General PS Narasimha, the Centre said the matter was urgent as today was the last day for submitting bids for the auctions process.

He contended that high court has passed an interm order without even hearing them and it “completely upset the policy behind spectrum auction” and could have a “serious implication” on the entire tendering process.

The high court, in its interim order, had issued notice to the Centre on separate pleas by Bharti Hexacom Ltd and Reliance Telecom Ltd which had challenged the Centre’s notice inviting bids on the ground that it has categorically said that applicant firm has to bid for a minimum of five MHz spectrum in the 900 MHz band in the circle.

The firms had told the high court that if a company bids for a minimum of five MHz spectrum of the total 8.8 MHZ spectrum, then there cannot be two players in the field and the government would also loose revenue for the remaining 3.8 MHz spectrum.

The high court, in its interim order, has observed that contentions of the firms that 3.8 MHZ spectrum would be wasted could not be accepted, as minimum of five MHZ spectrum criteria does not mean that an applicant cannot bid for 8.8 MHz radiowaves in the telecom circle.

The high court, while issuing notice to the Centre, has said the government cannot take any final decision on the issue without its permission.

The high court also allowed the two firms to submit two bids each, one for 5 MHz and one of 4.4 MHz spectrum.

The Centre, in its plea, said, “it is not possible for the high court to rewrite conditions of a tender document at the behest of prospective bidders.”

It also contended that high court was not justified in passing the interim order without giving an opportunity to the Centre to file counter affidavit on the petitions filed by the two telecom firms.

“The high court cannot examine the relative merits of the policy and strike down the same merely on the ground that another policy would have been fairer and better. Therefore, the high court could not have issued interim directions without coming to a conclusion as to the alleged illegality in the policy,” the Centre said in its plea.

It said that it had adopted a transparent procedure in the entire auction process and it would not be able to go ahead if the directions of the high court were to be implemented.

“The impugned order (of the high court) will lead to a complete disruption in the auction process,” it maintained.

PTI