Videocon to fast track its Rs. 10,000cr case against government
Videocon Telecom will put on fast track its case filed against the government in 2015. In it, Videocon had sought damages worth up to Rs. 10,000 crore due to business losses resultant of the Supreme Court's decision to cancel 2G licenses of eight companies including Videocon. The decision comes after the CBI court acquitted all accused in the 2G scam case on Thursday.
A brief note on the 2G scam case
The 2G scam case relates to the alleged sale below-market-price of lucrative telecom permits and airwaves in 2008. It cost the government an estimated Rs. 1.76 lakh crore in revenue. The CBI court acquitted all accused on Thursday due to lack of evidence.
Details of the case filed against government
A senior executive from Videocon Telecom who did not want to be named told The Economic Times that the case was filed just before the three year pleading period against the Supreme Court decision. The demanded damages at the time ranged between Rs. 5,500 crore to Rs. 10,000 crore taking into account loss of business, financial losses, and compensation.
The 2G judgement strengthens Videocon's case
"We've taken a loss of Rs 25,000 crore to the business even when there was no fault of ours, so the 2G judgement [clearing Videocon's name] will strengthen our case to seek relief from the government," said the executive.
Videocon suffers heavy losses after the Supreme Court cancels licenses
In its judgement of 2nd February 2012, the Supreme Court cancelled 21 licenses belonging to Videocon. In the following months, Videocon suffered heavy losses. Videocon Telecom, however, made a brief comeback and bought back spectrum in a few circles. However, owing to issues of financial viability, Videocon exited telecom in May 2016 when it sold its spectrum to Airtel for Rs. 4,428 crore.
