Supreme Court: Spectrum Usage Charges Payable from Date of 2G Licence Quashment

The Supreme Court directed a telecom operator to pay spectrum usage charges (SUC) from the date its 2G licence was quashed, not from the date of re-auction or grant of a fresh licence.

The Court observed that once a licence is declared invalid, the operator continues to use the spectrum and must compensate the exchequer accordingly.

It noted that allowing payment only from re-auction would unjustly benefit the operator at the cost of public revenue.

The Bench issued the direction while hearing an appeal arising from disputes over the consequences of quashing 2G licences issued in the controversial 2008 spectrum allocation exercise.

[UOI v. Sistema Shyam Teleservices Ltd.]