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Delhi HC clears revenue-sharing plan

Siddharth Zarabi

New Delhi, Aug 10: The Delhi high court on Tuesday allowed the implementation of the revenue sharing package for basic and cellular telecom companies subject to approval by the new government and the Lok Sabha but left the door open for the Election Commission to take its own decision on the matter.

The Election Commission had recently expressed dissatisfication over the But it refrained from taking a decision in view of the high court case. The court has fixed the next hearing on December 6, 1999.

A division bench of Chief Justice SN Variava and Justice SK Mahajan passed an interim order giving the go-ahead to the revenue sharing package following commitments by cellular and basic telecom operators that they would submit undertakings as desired by the court regarding approval of the package by the new government and Lok Sabha.

"Each and every licensee shall give an undertaking that the implementation of the migration package is acceptable by them subject to approval of government after the constitution of the 13th Lok Sabha or subject to disapproval of Lok Sabha," Justice SN Variava said.

Another significant aspect of the ruling is that the court ordered that the undertakings would be valid only till December 31. This followed repeated pleas by the telecom companies' that a deadline of November 30 be set by the court for the new Lok Sabha to clear the package.

The court clarified that the interim order was neither an approval or dissaproval or vindication of the new telecom policy as the court has not gone into the merits of the policy.

The bench said that the government can issue new licences to the operators only after they furnish an undertaking in this regard. Attorney General Soli Sorabjee assured the court that the undertakings will be furnished to the court.

The court ruled that in case the revenue-sharing package was disapproved, operators will not claim any right or equity out of the said package and will go back to the 1994 licence policy.

The ruling will only be applicable to licencees who give undertakings to the court and not to those whose licences have been terminated, the court said. Also, the court ruled that if any new licencees are issued to new operators, the same shall stand terminated.

The court was hearing a public interest litigation (PIL) filed by the Delhi Science Forum challenging the validity of the national telecom policy, 1999, which provided for switching over to revenue sharing system from fixed licence fee regime for existing operators.

Counsel for the Cellular Operators Association of India (COAI) Harish Salve said the 22 mobile phone service firms would comply with the court order but set the condition that the undertaking would be valid only until December 31 this year.

The public interest litigant contends the government stands to lose revenues to the tune of Rs 50,000 crore if the package is implemented.

THE CONDITIONS