Bombay High Court voids telecom government's spectrum levy

In a major legal victory for India's telecom sector, the Bombay High Court on Monday set aside the central government's long-standing demand for retrospective one-time spectrum charges from Bharti Airtel and Vodafone Idea. The ruling annuls demands and related actions stemming from a 2012 cabinet decision, providing the companies relief from potential liabilities exceeding 24,000 crore rupees and concluding a 13-year legal dispute.

The court quashed two Union Cabinet decisions from November and December 2012, along with all subsequent demand notices issued by the Department of Telecommunications (DoT). A bench of Justices Manish M. Pitale and Shreeram V. Shirsat ruled that the government had failed to identify any legal authority under the Telegraph Act or the original license agreements to impose the charges retroactively. The court directed that bank guarantees furnished by the operators as financial security against the disputed demands be returned and need not be kept alive.

The dispute originated after the Supreme Court's 2012 cancellation of 122 telecom licenses in the 2G spectrum case. Subsequently, the government sought to levy a one-time charge on operators holding...