Date:28/11/2009 URL: http://www.thehindubusinessline.com/2009/11/28/stories/2009112850950400.htm

Back Court quashes DoT plea on licence cut-off date

Our Bureau

New Delhi, Nov 27

The Delhi High Court has upheld an earlier decision by its single Bench to quash the Department of Telecom's move to advance the cut-off date for applying for new licences in 2007 from October 1 to September 25.

The DoT's move had left about 20 applicants including STel, AT&T and Hindujas in the lurch as they had applied after September 25. The court said that DoT's decision tantamounted to changing the rules after the game has begun.

STel had challenged the DoT's decision and had appealed for an order asking the Government to give licences. A single Bench judge had upheld STel's appeal which was challenged by the DoT.

However, the High Court has once again quashed the DoT order and has asked the Government to consider all 110 applications pending. “The appellant (DoT) has been unable to show that its decision to revise the cut-off date after receiving the application of the respondent (STel) was based on some rational criteria. It is vulnerable to being labelled arbitrary and irrational,” the court said.

According to analysts, the ruling has major ramification for the spectrum allocation rules being formalised by the regulator. “The court's decision could imply that the Government cannot impose a cap on the number of players anymore,” said a market watcher.