Centre challenges HC order allowing Sun Grup in FM auctions

The central government today challenged in the Madras High Court the recent order of a single judge allowing Sun group to participate in Phase-III auction process of FM radio without security clearance.
The Information and Broadcasting Ministry and Home Ministry filed appeals against the July 23 order of Justice M Sathyanarayanan contending that the judge had erred in passing the interim order.
The I&B Ministry had refused permission to the Group company to participate in the FM auctions on the basis of non-security clearance by the Union Home Ministry which had cited 'grave' economic offences faced by one of its promoters and former Telecom Minister Dayanidhi Maran for its decision.

Passing interim orders on a batch of six petitions by three Sun Group companies and three others by shareholders, Justice Sathyanarayanan had permitted them to participate in the auctions with a rider that results of the auctions should be kept in a sealed cover.
Challenging this, the I&B Ministry and the Home Ministry submitted that security clearance was part of the tender condition in clause 3.8 of tender document and this clause was not questioned at all by the Sun group.
Noting that security clearance was a condition precedent for participating in the e-auction, they said "government of India alone is the competent authority to decide on the security clearance and it is not for the court to substitute the opinion of the government of India on this issue."

The observation of the single judge that the accused was presumed to be innocent unless the guilt was proven would not apply when the government refused security clearance. Section 4 of Indian Telegraph Act, 1885, is very wide and clearly provides that it is the exclusive privilege of the central government to grant licence on such conditions, the appeals said.

"Therefore, if the Centre decides to insist on security clearance as a condition, it is clearly traceable to the Act and it cannot be questioned by Sun Group after having made an application to participate in the e-auction," they said.

The appeals raised the issue of jurisdiction as well, saying that in view of clause 4.22.2 of tender conditions, the high court of Delhi alone had jurisdiction to decide the issue.
The appeals are expected to be taken up for hearing in the next two days.