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Govt may move SC on cellular licence issue

The government on Thursday said it is considering moving the Supreme Court to handle litigation in Madras high court which has halted the finalisation of bidding process for fourth cellular slot, even as Bombay high court vacated its interim order staying finalisation of cellular licences.

"Every possible step is being taken to bring in new players in both the cellular and basic services. The Madras high court is being moved and so is Supreme Court. Legal Opinion is being obtained on these issues," an official spokesperson said.

The Bombay high court vacated its Tuesday's ad-interim order restraining the Union government from finalising tenders for the fourth cellular licence and allowing Videsh Sanchar Nigam Ltd to make a bid.

Hearing a petition filed by Bharti Telecom, Chief Justice B P Singh and Justice Vijaya Tahilramani noted that VSNL had not made the bid till Thursday which was the last day for filing tenders.

The government had announced a 3-stage bidding process for the fourth cellular slot. At the end of second stage, government was likely to get at least Rs 14.86 billion for awarding licences in 17 circles.

The final (third) bids for fourth cellular operator in various circles have been received by the government on Thursday and have been sealed and kept in safe custody, and would be opened as soon as legal position is clear, the spokesperson said.

HC vacates stay on finalising 4th cell licence

In a significant development, the Bombay high court on Thursday vacated its earlier ad-interim order restraining the Union government from finalising tenders for the fourth cellular licence and allowing Videsh Sanchar Nigam Ltd to make a bid.

Hearing a petition filed by Bharti Telecom, Chief Justice B P Singh and Justice Vijaya Tahilramani noted that VSNL had not made the bid till Thursday which was the last day for filing tenders.

The judges were of the opinion that no purpose would be served by continuing the July 17 order of the high court, which had allowed VSNL to participate in the fourth cellular licence bid under advise from the Union government and restrained the Centre from finalising the tenders until further orders.

The ad-interim order had been delivered on a petition filed by Federation of Union of VSNL Employees and VSNL Officers Union challenging the government's decision to exclude VSNL from participating in the bid for the fourth cellular licence.

The petition contended that VSNL was excluded from participating in the cellular licence bid on the ground that intense competition between public sector units was to be avoided. Besides, it was proposed to privatise VSNL by reducing its equity stake from 52.97 to 26 per cent.

Petitioners argued through their counsel Janak Dwarkadas that VSNL and MTNL were already holding licences as the third cellular service provider and the former was soon to be privatised. Hence, there was no question of intense competition between PSUs, he argued.

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