In Brief
Reliance Telecom and other telecom operators challenged the Notice Inviting Application 2015 for spectrum auction, claiming the capping clause, minimum bidding criteria, and exclusion of certain spectrum were arbitrary, discriminatory, and contrary to public interest. The Supreme Court held that the State, as trustee of natural resources, must ensure fair and transparent allocation through auction. The NIA's classification of bidders and capping were reasonable, non-arbitrary policy decisions serving consumer interest and preventing monopoly. TRAI's recommendations, though entitled to due weight, were not binding. The Court declined to interfere with complex commercial auction decisions absent manifest arbitrariness or mala fides. Spectrum reserved for defence purposes and withheld pending harmonization reflected legitimate public interest. The dismissal upheld the government's auction design as a prudent exercise balancing revenue maximization with consumer protection.
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