In Brief
This case concerns whether telecom operators whose licences were quashed in the 2G spectrum scandal could claim exemption from paying the auction reserve price for continuing operations beyond the original cancellation date. In 2012, the Supreme Court cancelled 122 telecom licences and ordered a fresh auction, but permitted temporary continued operations to prevent service disruption. Due to auction delays, the Government demanded that operators pay the reserve price and interest for the extended period. The Court held that temporary continuation did not exempt operators from financial obligations. The Court clarified that the liability commenced from the licence cancellation date, not from later judicial orders, and ended when new licences were allocated. Interest accrued only from when the demand notice expired.
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