Aircel to seek recall of Supreme Court order on airwaves sale

NEW DELHI: Aircel, which risks losing its spectrum licence due to a case filed against former telecom minister Dayanidhi Maran, has written to the telecom department, saying it will move an application in the Supreme Court to clarify certain details of the company, including airwaves that it has already sold.

The telecom services provider told the Department of Telecommunications (DoT) that it is not party to the proceedings in the case and that no allegations of wrongdoing have been made against the company. The clarifications will include details of Aircel’s sale of broadband wireless access (BWA) or 4G spectrum to Bharti Airtel last year.

The Supreme Court last week gave Maxis Group owner T Ananda Krishnan and Maxis Communications Berhad, which own a majority of Aircel shares, two weeks to explain their failure to answer criminal charges in a lower court or risk the cancellation of airwave licences belonging to Aircel.

The court also barred the transfer or sale of Aircel’s 2G airwaves to a third party in the interim.

“Aircel has sought legal advice on the effects of the orders for appropriate steps to be taken and we have been advised to move an application which shall be filed shortly with a view to setting straight certain details of the company, including sale of BWA spectrum to Bharti Airtel,” the company said. EThas seen a copy of the letter dated January 12.

“The business and operation of the company are continuing as usual and we remain committed to provide continued service to our subscribers and shall keep you duly informed,” the company said. Aircel held a board meeting on Thursday to inform directors and lenders about the decision to file a plea with the apex court, people aware of the development said. The company did not immediately comment on the matter.

The top court had also asked the DoT to look for an alternative service provider for Aircel’s 91 million subscribers. The department could even consider auctioning the spectrum, a three-judge bench had said.

The order could affect a transaction between Aircel and Reliance Communications, which are merging their wireless businesses in a new entity to be equally owned by the founders of both companies.

ET had reported earlier this week that Aircel may seek the recall of the Supreme Court order barring the telecom company from selling or transferring its airwaves to a third party, on the grounds that it was not accused in the case filed against Maran. Aircel plans to contend that the spectrum belongs to the company, a separate entity, and not Maxis.