2G scam: we are the final authority, says SC

The Supreme Court today made it clear that any action taken by the government in connection with the 2G spectrum 'scam' would be subject to the outcome of petitions pending before it; and the Comptroller and Auditor General's report cannot be the only basis for cancellation of licenses for the 2G services.

"Everything they (government) do after filing of the petition is subject to the outcome of the petitions," a bench comprising Justices G S Singhvi and A K Ganguly said. "We do not know what they are doing. But if they do (cancel licences) it is subject to the outcome of our order," the bench said.

The remarks by the bench came on the plea by the Centre for Public Interest Litigation (CPIL), which was seeking a direction to the government restraining it from regularising the licenses of the telecom companies which failed to meet service roll-out obligations.

Prashant Bhushan, council for CPIL, said that the government was regularising the licenses of the companies by imposing penalties on the companies.

The bench further said, "If the licenses are going to be cancelled, it cannot be cancelled only on the basis of the CAG report."

The apex court adjourned the hearing on the matter till 1 March.

Critics allege that spectrum was sold on the cheap in 2008-09, when former telecom minister A Raja dished out licences and spectrum on a first come, first served basis and violated various procedures.

The CAG has estimated the loss caused to the exchequer at Rs1.76 lakh crore, a figure that has been disputed by current telecom minister Kapil Sibal. Raja had to resign in the wake of the alleged scam.