2G: Videocon to file Rs 10k cr damage claim against Govt

Source: The Hitavada      Date: 24 Dec 2017 10:32:24


Dec 23,


VIDEOCON Telecommuni-cations was planning to file over Rs 10,000 crore compensation claim against the Government after the CBI court gave a clean chit to all accused in 2G spectrum allocation case, a company source said. “Videocon Telecommunications is planning to file compensation suite against the Government for at least Rs 10,000 crore. The damage is estimated to be more than Rs 10,000 crore and the company is working on final amount that is to be claimed,” a source close to senior management said.

The CBI court on Dec 21, 2017 gave a clean chit to all the accused, including the then Telecom Minister, A Raja, in 2G spectrum allocation case of 2008. The SC judgement in 2012 had cancelled 122 telecom licences in 2G spectrum allocation done under the regime of Raja, which included 15 licences of Videocon.

The company had paid around Rs 1,500 crore for procuring telecom permits. Following the SC judgement, Videocon participated in spectrum auction and purchased permit in 1,800 MHz band, then known as 2G spectrum, across 6 circles -- Bihar, UP (East), UP (West), Haryana, MP and Gujarat in Nov 2012 for Rs 2,221.44 cr. “Videocon Tele had to take loans of around Rs 25,000 crore for telecom services business. The cancellation of telecom licence caused huge financial losses to the company,” the source said.