Supreme Court: Centre has Absolute Powers to decide the Terms and Conditions for Telecom Operators

The Supreme Court of India ruled that the Centre has absolute powers to decide the terms and conditions for telecom operators as neither the Telecom Regulatory Authority of India, TRAI, nor the Telecom Disputes Settlement and Appellate Tribunal, TDSAT, can overrule it.

The apex court ruled, though TRAI was conferred with the statutory power to recommend the terms and conditions of the license and the Central Government was bound to seek its recommendations, yet, the same was not binding on it. A Bench of Justices R V Raveendran and A K Patanaik passed the ruling while upholding an appeal filed by the Union Government challenging a TDSAT direction of 2007 to the Government to prepare a revised term and conditions for the licensees vis-a-vis adjusted gross revenue.