MTS Sistema has filed a review petition with the SC in the 2G Spectrum Scam case praying that the ruling should not apply to it on the following grounds,
SC’s cancellation of 2G licenses issued on or after January 10, 2008 was based on the premise that FCFS method of allocation was flawed. MTS’ contention is that it happened to be awarded licenses in January 2008 and it needs to be noted that MTS Sistema was the lone applicant for a CDMA licence and FCFS was not involved at any stage of application, licence allocation or spectrum allocation
SC’s contention that the 2G licence allocation resulted in loss to the exchequer stems from the fact that the licensees sold stakes in their business at much higher prices to their JV partners. In MTS Sistema’s case, it needs to be noted that the JV was formed prior to the award of license and hence MTS Sistema cannot be accused of profiteering.
Since the case does appear different from that of Uninor [Unitech + Telenor] Etisalat and DB, the SC may take cognizance of these issues and grant relief to Sistema. Well MTS Sistema is right in its argument however, the core question remains the “Price of Spectrum” for which the entire Scam was engineered by cronies of A. Raja. The SC may allow MTS to operate and match the Spectrum Price after the Auction or Participate in the Auction and Win the Spectrum.
If MTS Sistema is not happy with the SC ruling, MTS Sistema is prepared to invoke the Bilateral Investments Treaty as 17% stake is held by the Russian Government by virtue of which the Indian Government is obliged to promote and protect foreign investments, including treating investments in a fair and equitable way.
If further aggrieved by Government’s decision, MTS Sistema may approach the United Nations Commission on International Trade Law or the World Bank-affiliated International Center for Settlement of Investment Dispute for legal redressal to safeguard its investments.
Long Live the Indian Telecom Industry governed by Politicians of Highest Integrity 😉