SC Dismisses PIL Challenging Relief Measures for Stressed Telecom Sector

The Supreme Court has dismissed a PIL(Public Interest Litigation) seeking the cancellation of the Centre’s decision made on September 15, 2021, to grant relief to the stressed telecom sector from paying statutory dues.

The Court stated that these matters pertain to policy decisions, often based on expert opinions, and are influenced by emerging situations and exigencies in the interest of India’s welfare, especially during the COVID-19 pandemic. Therefore, it is not appropriate for the Court to lightly interfere with Cabinet decisions unless they are proven to be unconstitutional, arbitrary, or contrary to the law.

A bench of Justice B V Nagarathna and Justice Ujjal Bhuyan emphasized that the COVID-19 pandemic brought significant changes in people’s lives, with a surge in data consumption, online education, and work from home. In this context, reforms were deemed necessary to enhance broadband and telecom connectivity. The Court noted that telecom services became crucial during the pandemic, supporting virtual education, remote work, and even virtual court proceedings.

The bench also pointed out that the telecom sector played a pivotal role in facilitating communication and maintaining vital services during lockdowns. Therefore, it concluded that the Cabinet’s decision to initiate reforms and provide relief measures to telecom service providers was justified, given the changing circumstances brought about by the pandemic.

The Court stated that it may initially seem that these Cabinet decisions contradicted its earlier directions, but the exceptional circumstances of the pandemic warranted such actions. Instead of the Court, it suggested that the central government should have filed an application regarding these developments.

In summary, the Supreme Court upheld the Cabinet’s well-considered decision, emphasizing the crucial role of the telecom sector during the pandemic, and rejected the PIL, finding it without merit.

The Union Cabinet’s relief package in 2021 aimed to provide significant support to the struggling telecom sector by allowing companies to defer payment of statutory dues, share scarce airwaves, redefine revenue for levies, and permit 100% foreign investment through the automatic route. These measures were designed to provide relief to companies like Vodafone Idea, which faced substantial unpaid statutory dues.