Fed-up Loop Telecom offers to return spectrum
10 Mar 2011
Loop Telecom has made an offer in the Supreme Court to surrender its 2G licence along with spectrum for 21 circles. The company says it is willing to let the government auction its spectrum in return for a refund of the Rs1,450 crore it had paid earlier as licence fee.
The offer by Loop was made on Wednesday during the public interest litigation (PIL) hearing in the Supreme Court that sought cancellation of the 2G spectrum allotted during A Raja's tenure as telecom minister. The apex court is hearing a petition on the issue of cancelling licences granted by Raja.
Loop is facing charges of violation of cross-holding of equity rules. The company in its affidavit filed with the Supreme Court in February had clarified that the Essar Group is not behind Loop Telecom's licence acquisition.
Loop has been under the scanner of the Central Bureau of Investigation for irregularities during the allotment of 2G licence, as well as for Essar violating holding norms in the company.
Loop, one of the operators, which have been named along with others in the entire case as it was awarded licence in 2008 by Raja, made an offer to the two-judge bench comprising justices G S Singhvi and A K Ganguly.
The company's counsel Ariama Sundaram submitted to the court that the government should auction Loop's licence / spectrum in an open and unrestricted auction.
