Markets: Eerie calm

Markets: Eerie calm

it is not clear when market sentiment can change; as in the past, it can be quite sudden.
At a turn and yet not

At a turn and yet not

RBI could be tempted to cut policy rate to support growth at its bi-monthly review.

SC rejects curative petitions of Sistema, TTSL & Idea

Feb 15 2013, 03:46 IST
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SummaryThe Supreme Court on Thursday rejected the curative petition of Sistema Shyam seeking setting aside of the court’s February 2 order on cancellation of its licences.

The Supreme Court on Thursday rejected the curative petition of Sistema Shyam seeking setting aside of the court’s February 2 order on cancellation of its licences.

With this, curative petitions of other companies —Videocon Telecommunications, Tata Teleservices and Idea Cellular —were also rejected.

A bench comprising three senior judges led by Chief Justice Altamas Kabir said that “no case is made out” and “hence, the curative petitions are dismissed.” It also rejected SSTL’s applications for stay and appropriate directions filed in the curative petition.

Besides, the bench, which also comprised justices P Sathasivam and GS Singhvi, also rejected former telecom minister A Raja’s plea for grant of “permission to file curative petitions”.

Now Sistema Shyam Teleservices (SSTL), which offers mobile services on the CDMA platform under the MTS brand, has no option but to bid in the second round of 2G spectrum auction scheduled for March 11. SSTL, which is set to lose licence in all but one of its 22 telecom zones, had opted out of participating in the first round of 2G spectrum auction in November following cancellation of its licences, saying the price was too high.

However, the company had indicated during the last court hearing on Monday that it was ready to participate in the next round of 2G spectrum auction scheduled for March 11 and would take a decision on February 22 to choose the circles.’

Commeting on the dismissal of its curative petition by the SC, SSTL said, “It is unfortunate that the Hon’ble Supreme Court has not admitted the curative petition of Sistema Shyam TeleServices. The company believes that it has been unfairly penalised in the February 2, 2012, order by the honourable Supreme Court. While SSTL remains committed to its operations, however, it would be up to the shareholders to decide the go forward strategy of the company”.

The government had last month halved the reserve price for CDMA spectrum in a bid to get SSTL bid in the upcoming auctions.

Sistema, which has invested more than $ 3.2 billion in India, had also warned that the dispute over its permits would threaten diplomatic ties between India and Russia.

The telecom department had also earlier indicated that it would support Sistema's curative petition in the apex court. SSTL had even threatened to seek billions of dollars in damages by initiating international arbitration proceedings if the Indian government failed to finalise a strategy for restoring its quashed permits.

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