Can't take cognisance of Sibal's version of loss: SC

The court also questioned the silence of TRAI on the issue of alleged delay in fulfilling roll-out obligations of the companies which were issued 2G spectrum licenses

PTI | January 10, 2011



Telecom Minister Kapil Sibal may have created a flutter by describing as incorrect the CAG report on the presumptive loss of Rs 1.76 lakh crore in the 2G allocation but the Supreme Court today said it cannot take cognisance of that as it is not part of the record.

The court's remark came when advocate Prashant Bhushan appearing for NGO Centre for Public Interest Litigation (CPIL) seeking cancellation of the 2G licenses submitted that Sibal had disputed the CAG report on the presumptive loss of 1.76 lakh crores, saying it was not correct.

"We cannot take cognisance of that as it is not part of the record," a bench comprising justices G S Singhvi and A K Ganguly said.

The bench also questioned the silence of TRAI, which is the highest regulatory authority in the telecom sector, on the issue of alleged delay in fulfilling roll-out obligations of the companies which were issued 2G spectrum licenses.

"Why did the TRAI not take action. Why was it silent for around one year and seven months. TRAI is treated as the highest regulatory authority in the telecom sector and even in terms of the consumer. What was it doing?," the bench asked.

When contradictions in the actual loss to the national exchequer was mentioned, the bench said it will be for the government to spell out the actual loss suffered by the national exchequer in the allocation of the spectrum which was done by allegedly flouting several norms.

"How much loss has the national exchequer suffered? We will ask the government," the bench said.

However, when Bhushan said that CAG report has given the amount, the bench said it is not the government's version.

Bhushan submitted that there was a huge loss to the government as the licenses were sold to other entities next day after its allocation at three times the original price.

However, the bench said that the amount of loss has now become a debatable issue.

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