February 1, 2011 6:46 PM

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Cancellation of 2G spectrum allocation: CAG report not the sole basis, says SC

The Supreme Court on Tuesday made it clear that the CAG report cannot be the only basis for cancellation of allocation of the 2G Spectrum and said all government decisions, including regularisation of the licences of erring telecom companies, would be scrutinised by it. It said that any decision taken by the centre on the 2G spectrum would be subject to the outcome of the petitions pending before it. A bench comprising Justices G S Singhvi and A K Ganguly said everything government does after the filing of the petitions is subject to the outcome of the petitions.The remarks of the bench came on the plea by an NGO Centre for Public Interest Litigation (CPIL), which was seeking a direction to the government for restraining it from regularising the license of the telecom companies which failed to meet the roll-out obligations. The NGO's counsel Prashant Bhushan said that the government was regularising the licenses of the companies by imposing penalties on the companies. Senior advocates Harish Salve, Abhisekh Manu Singvi, Soli Sorabjee and others appearing for various telecom companies, contended that CAG report, which had estimated a presumptive loss of 1.76 lakh crore rupees to the exchequer in allocation, has been the basis for the cancellation of 2G spectrum. They said it has already been pointed out by the government that there could be a host of errors in the computation of loss by the CAG.

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