Putting up a brave front after the Supreme Court judgement, telecom minister Kapil Sibal said the verdict will clear the air of uncertainty in the telecom sector and will encourage foreign investment into India.
"The sector has suffered due to uncertainties and this judgement brings a lot of clarity," the minister said while welcoming the decision.
Earlier in its verdict the Supreme Court Supreme Court cancelled all 122 spectrum licences granted after January 2008 causing massive embarrassment to the UPA government.
The apex court also said that the trial court could decide whether to probe the home minister P Chidambaram’s role in the 2G spectrum allocation case.
In its verdict, the SC has said that the TRAI recommendations were "flawed", said Sibal adding, "the telecom regulator will prepare guidelines for the auction of second-generation spectrum."
Sibal said he was pleased about SC verdict since it provided clarity on the 2G issues. "The SC order is consistent with the government policy."
The government will abide by the judgement that spectrum should be auctioned which, he said, the ministry has done by delinking spectrum from the licence in 2011 after he took over.
Defending the home minister P Chidambaram over BJP’s demand for his resignation sibal said that he expect the BJP to come clean and say that they themselves were responsible for the loss.
Affected licence holders can operate for four months, during which regulators will come up with new market rules. Sibal said the government will decide on exit policies for telecom firms in 10 days.
Asked about the implications of the judgement on the companies like Telenor of Norway and Sistema of Russion who have pumped huge money to roll out services, the minister said any aggrieved corporate can approach the court for relief.