SC proposes to cancel Aircel’s 2G licence

New Delhi, Jan 6 (IANS) The Supreme Court on Friday proposed to cancel the 2G licence and spectrum granted to Aircel if Maxis Communication Communication's owner, Malaysia-based Anantha Krishnan Tatparanandam, who bought the majority shares of the Indian telecom company, and his one-time key aide Augustus Ralph Marshal fail to present themselves before it.

Marshall is shown by the Central Bureau of Investigation (CBI) as a Director of Britain-based Astro All Asia Networks Plc, and Malaysia-based Maxis Communications Berhad.

A bench of Chief Justice Jagdish Singh Khehar, Justice N.V. Ramana and Justice D.Y. Chandrachud also restrained transfer or trading in 2G spectrum originally granted to Aircel to any other entity.

Aircel was granted 2G licence with spectrum bundled with it in November 2006.

In a candid message to overseas investors that they can't build on India's natural resources and at the same time escape its laws, the court said that Krishnan and other accused would not be allowed to frustrate the due course of law by avoiding appearing before the court.

"It is imperative to ensure, in our considered view, that the process of law should not be permitted to be frustrated by non-service of summons on the accused," it said.

"In order to enforce the presence of accused Augustus Ralph Marshall, Ananda Krishna Tatparanandam, Astro All Asia Networks Limited and Maxis Communications Berhad, Malaysia, we propose to restrain, earning of any revenue, by using the 2G Spectrum licences, which were originally granted to Aircel Telecommunications."

To bring its order to the notice of the four accused, the court directed the Central government get it published in two leading newspapers in Malaysia.

The court made it clear that Krishnan, Marshal or any other two accused would not be permitted to raise any issue of financial loss, that they might suffer on account of the proposed cancellation of the 2G licence and spectrum granted to Aircel in November 2006.

It said that the Ministry of Communication and Information Technology would devise ways and means by which "the earlier subscribers (of the 2G Spectrum licences, granted in favour of Aircel) can be transferred provisionally, to some other service provider, in case the necessity to pass the proposed order arises" in order to prevent any hardship or adverse consequences to the subscribers.

The bench said that it would be open to Krishnan and Marshal to appear before the court in Delhi, failing which it would pass its proposed order.

"If he (Krishnan) wants to use 2G spectrum then he will have to come here. He must appear before us. He can't run away from the process of law. We can't allow him to run away from law."

Making it clear that it would take a stern view of Krishnan not submitting to Indian laws, the bench observed: "If money is earned as a matter of fraud and if party refuses to appear (before the court), we can ask that party not to sell spectrum. You can't defeat the process of law."

The court made these observations when Prashant Bhushan, counsel for petitioner, NGO Centre for Public Interest Litigation and petitioner Subramanian Swamy said that the proceeds of the spectrum, which was obtained through a crime, need to be attached under money laundering law.

Attacking former Finance Minister P. Chidambram, BJP leader Swamy said that a foreign-based company was allowed to acquire 74 per cent stakes in Aircel in violation of the government regulations putting the ceiling at foreign investment to the maximum of 26 per cent.

The court directed the next hearing of the matter on February 3.