Supreme Court in its judgment dated 2.2.2012 in WP No.423 of 2010 has concluded that the Department of Telecommunications(DoT) ignored the “
concerns raised from various quarters including the Prime Minister, Ministry of Finance and also some of its ownofficers
.” The Supreme Court has also concluded that “
as theMinister of C&IT was very much conscious of the fact that theSecretary, Finance had objected to the allocation of 2G spectrumat the rates fixed in 2001, he did not consult the Finance Minister or the officers of the Finance Ministry
.” The Supreme Court hasalso noted that the meeting of the full Telecom Commissionscheduled to be held on 9.1.2008 was postponed by the DoT andthe LoIs were issued on 10.1.2008.
Thus, it will be clear that theLoIs were issued on 10.1.2008 without the knowledge of theMinistry of Finance.
What happened after 10.1.2008 is a matter of record. After 10.1.2008, notes and discussion papers were exchanged betweenthe Ministry of Finance and the DoT during January to April,2008. These discussion papers reflect the consistent stand of theMinistry of Finance that auction was the best method to discover the price and it was legally possible to do so. However, DoTdeclined to accept this view. Hence, various alternatives wereexplored to raise additional revenue. The final discussion paper that was prepared by Secretary, Finance and Secretary, DoTwas considered at a high-level meeting on 4.7.2008. Decisionstaken at that meeting were the decisions of the government.One of the decisions was to revise and update the entry fee byadopting one of two methods (GDP growth rate or SBI PLR) andto charge the said amount upfront when the licencee applied for additional spectrum. This decision would apply to all licenceeswho had been allocated spectrum up to 31.3.2008, includingthe 122 licencees. The decisions are recorded in the minutesdated 6.7.2008.
Therefore, there was never any “agreement”between the Minister of C&IT and me not to revise the entry