CAG cannot be the only basis for cancellation of Spectrum: SC

New Delhi, Feb 1 (PTI) The Supreme Court today made itclear that the CAG report cannot be the only basis forcancellation of licenses for the 2G Spectrum and any decisiontaken by the government on the issue will be subject to theoutcome of the petitions pending before it.

"Everything they (government) do after filing of thepetition, is subject to the outcome of the petitions," a benchcomprising Justices G S Singhvi and A K Ganguly said.

"We do not know what they are doing. But if they do,it is subject to the outcome of our order," the bench said.

The remarks by the bench came on the plea by an NGOCentre for Public Interest Litigation (CPIL) which was seekinga direction to the government for restraining it fromregularising the license of the telecom companies which failedto meet the roll-out obligations.

NGO''s counsel Prashant Bhushan said that thegovernment was regularising the licenses of the companies byimposing penalties on the companies.

The bench further said, "If the licenses are going tobe cancelled, it cannot be cancelled only on the basis of theCAG report." MORE AAC RKS ABA RAXABA

The court was hearing two petitions filed by CPIL and Janata Party chief Subramanian Swamy seeking cancellation ofthe licenses of 2G spectrum allotted during the tenure offormer Telecom Minister A Raja on the ground that therewere largescale irregularities on the allocation.

The court posted the hearing on the petitions forMarch 1.

During the brief hearing, Bhushan submitted that theCPIL has raised five grounds for cancellation of the licensesof 2G spectrum.

He said the spectrum were allocated without auction atthe price prevailing in 2001 and the cut-off date was advancedwhich resulted in the elimination of two-third applicants.

Further, 85 out of 122 entities were ineligibleoperators and 69 of them failed to meet their roll-outobligations, Bhushan added.

The bench said all these factors will be considered atthe time of hearing.