The Supreme Court has ruled that the Centre has absolute powers to decide the terms and conditions for telecom operators as neither the Telecom Regulatory Authority of India, TRAI, nor the Telecom Disputes Settlement and Appellate Tribunal, TDSAT, can overrule it.

The apex court said, though TRAI has been conferred with the statutory power to recommend the terms and conditions of the license and the Central Government was bound to seek its recommendations, yet, the same was not binding on it.

A Bench of Justices R V Raveendran and A K Patanaik passed the ruling while upholding an appeal filed by the Union Government challenging a TDSAT direction of 2007 to the Government, to prepare revised terms and conditions for licensees vis-a-vis the adjusted gross revenue.