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HC Strikes Down Retrospective One-Time Spectrum Charge on Telcos
The court said the Centre lacked power to impose the charge retrospectively and ordered the return of bank guarantees.
- On Monday, the Bombay High Court struck down a retrospective one-time spectrum charge imposed on Bharti Airtel and Vodafone Idea, setting aside 2012 government decisions and ordering the return of all bank guarantees deposited by the operators.
- The government sought to retroactively impose the fee in 2012 for spectrum held above 6.2 MHz following the 2G spectrum case, but the bench ruled the state lacked statutory or contractual authority to unilaterally rewrite financial terms after granting licenses.
- Airtel had provisioned Rs 8,500 crore for the liability and classified another Rs 6,600 crore as contingent, while total industry relief is estimated at over Rs 24,000 crore, allowing these provisions to be reversed.
- The bench stated the government had "suddenly changed track midway through the working of the contract," finding the state's "inconsistency in the conduct of the respondent" regarding the 13-year-old demand impossible to sustain.
- Authorities are studying the ruling before deciding whether to appeal to the Supreme Court, while for Vodafone Idea, the decision removes contingent liabilities as it manages separate government-frozen AGR dues of Rs 87,695 crore until FY32.
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12 Articles
12 Articles
HC strikes down govt's spectrum charge demand, removes Rs 24,000 cr liability of Airtel, Vodafone Idea
No statutory authority for charge, no right or obligation to impose levy, court says, removing legal basis for one-time spectrum charge and giving Vodafone Idea a shot at survival.
·New Delhi, India
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HC strikes down retrospective one-time spectrum charge on telcos
Criticising the central government for its “unilateral” action, the court said the government cannot resile from the terms and conditions of the contract and then justify the same by taking shelter in concepts such as “common good, public good, public interest”
·New Delhi, India
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Airtel, Vi eye over ₹24,000 crore relief as Bombay HC quashes govt's spectrum fee demand
While the Bombay High Court has now quashed the demands against Airtel and Vodafone Idea, the broader legal battle over OTSC remains pending before the Supreme Court through multiple parallel proceedings.
·New Delhi, India
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Coverage Details
Total News Sources12
Leaning Left2Leaning Right2Center2Last UpdatedBias Distribution34% Left, 33% Center, 33% Right
Bias Distribution
- 34% of the sources lean Left, 33% of the sources are Center, 33% of the sources lean Right
34% Left
L 34%
C 33%
R 33%
Factuality
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