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2G case: Loop promoters move high court on refund

Posted on Nov 07, 07:30PM | IANS

Promoters of Loop Telecom Wednesday moved the Delhi High Court against the decision of a ministers' group to refund the licence fees only to those telecom companies against whom criminal prosecution was not initiated in the 2G case.

Loop Teleholding promoters Kiran Khaitan and I.P. Khaitan, along with Essar group promoters, have been facing trial in the case.

The Supreme Court Feb 2 cancelled 122 licences issued to telecom companies by former telecom minister A. Raja in 2008. The apex court also asked the central government to auction the 2G spectrum again.

Alleging that the guidelines of Unified Access Services Licence (UASL) were vague and ambiguous, the Khaitans also challenged the UASL guidelines.

"The vague and ambiguous provision of Clause 8 of UASL guidelines have caused grave prejudice and violated the fundamental rights of the petitioners," said Khaitans in the petition.

It was alleged that the word "association" has not been defined in the Clause 8 of UASL guidelines and the word has been interpreted by various persons as per their respective perception.

"The word association has not been defined in the guidelines or the Companies Act and thus has been interpreted by various persons/authorities based on their respective perception," said the petition.

Khaitans mentioned in the plea that they had approached the Telecom Disputes Settlement and Appellate Tribunal against the government and the Telecom Regulatory Authority of India (TRAI) to refund Rs.1,454 crore paid for 2G licence in 2008 and sought Rs.1,000 crore damages for loss of reputation after its cancellation, in which a final decision was yet to come.

The plea said that the ministers' group Oct 8 had taken a decision to refund the licence fee only to those companies which were not facing criminal case.

The matter would next come up for hearing Nov 20.