SC refuses to stay hike in Delhi mobile tower fees
23 Jun 2010
Turning down a plea by cellular operators for a stay in the fee hike for use of mobile towers imposed by the Municipal Corporation of Delhi (MCD), the Supreme Court on Tuesday gave the operators three days to pay half of the increased licence fee to the MCD. The fee is to be paid in Fixed Deposit Receipts (FDRs).
A vacation bench of justices R M Lodha and A K Patnaik refused to stay the levy of the enhanced charges - currently at Rs2 lakh per tower - for operating 5,364 mobile towers located within the MCD jurisdiction.
The court said it would not adjudicate on the specific question of the ''legality'' of the hike as the issue is already pending before the Delhi High Court, and listed for hearing on 12 July.
As a temporary relief for the operators, the Bench directed the MCD not to cash the FDRs, placed in trust with the high court registry, until the high court takes a final decision.
The single bench order also permitted the cellular companies to operate their towers by depositing Rs one lakh instead of Rs 5 lakh in the form of a fixed deposit receipt with the high court registry.
The Cellular Operators Association of India had approached the apex court in a last-ditch effort to protest the increase in fee. Tuesday was the deadline for payment.
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