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This is an archive article published on June 23, 2010

SC tells cellcos to pay half fee in 3 days

The Supreme Court on Tuesday gave cellular operators three days to pay half of the increased licence fee for use of mobile towers to the Municipal Corporation of Delhi.

The Supreme Court on Tuesday gave cellular operators three days to pay half of the increased licence fee for use of mobile towers to the Municipal Corporation of Delhi (MCD).

The fee is to be paid in Fixed Deposit Receipts (FDRs).

A Vacation Bench of Justice R M Lodha and Justice A K Patnaik refused to stay the levy of the enhance charges — currently logged at Rs 2 lakh per tower — for operating 5,364 mobile towers located within the MCD jurisdiction.

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The court said it would not adjudicate on the specific question of the “legality” of the hike as the issue is already pending before the Delhi High Court,and listed for hearing on July 12.

As a temporary relief for the operators,the Bench directed the MCD to not cash the FDRs,placed in trust with the HC Registry,until the High Court takes a final decision.

The Cellular Operators Association of India had approached the apex court in a last-ditch effort to protest the increase in fee — Tuesday was the deadline for payment.

The Bench disagreed the cellular operators’ contention that the enhancement was “unjust enrichment”,would increase operational costs for them and deprive consumers of “affordable world-class mobile telecom service”.

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“You are not someone who cannot pay. You can afford it,” the Bench remarked.

The MCD had on April 8 changed its earlier policy of a one-time payment of Rs 1 lakh and decided to hike the fee to Rs 5 lakh for every five years.

As the MCD began its sealing drive against “illegal” mobile towers,the operators approached the High Court. The HC on May 13 restrained the sealing.

On its side,the MCD argued before the High Court that of the 5,364 towers in the city,only 2,412 had the requisite permission and the remaining 2,952 were illegal. It contended that the sealing drive was necessary as the presence of so many towers posed a health hazard.

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On May 31,a Single Judge Bench of the High Court directed the Telecommunication Secretary and the MCD Commissioner to constitute a broad-based committee to examine the potential health hazards from the towers.

The Single Judge also reduced the enhanced fee from Rs 5 lakh to Rs 2 lakh. The civic body,however,chose to appeal against the order.

A Division Bench led by Chief Justice Dipak Misra on June 4 stayed the Single Bench’s direction to form an expert panel and also refused MCD permission to seal the 2,952 “illegal” towers.

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