Unitech drops after SC cancels licences

The Unitech traded with over 8.5 percent losses after the Supreme Court scrapped 122 telecom licences, including 22 licences of Uninor, in a historic judgement given by it on Thursday.

Reliance Communication traded with nearly 5.5. percent loses on Wednesday. However, the company had clarified on the entire issue saying it was not affected since their licences were of 2001.

Uninor said it was shocked and treated unfairly.

Videocon, that faced 21 licences cancelled by the apex court, traded with over 3 percent losses.

Idea on the other hand traded with over 3 percent losses after nine licenses of the company were cancelled.

However, Bharti traded 4 percent gains on Wednesday.

In a historic judgement that is likely to send shiver down the spine of some giant conglomerates, the Supreme Court on Thursday scrapped 2G spectrum licences of 122 mobile networks granted during the tenure of A Raja as the telecom minister since early 2008.

In another verdict it said the trial court hearing the 2G spectrum scam will decide if P Chidambaram would be made co-accused in the case.

The apex court said the Telecom Regulatory Authority in India (TRAI) must ensure issuance of fresh issue of licences.

The court gave four months to cancel the licences and issue fresh ones by auction.

The Court also asked the Central Bureau of Investigation (CBI), the federal investigating agency, to submit their status report regularly to the Chief Vigilance Commissioner (CVC).

The scandal over the alleged allocation of telecoms licences at below-market prices, which could have lost the treasury up to Rs 1.76 lakh crore, according to the government's auditor, has already impaired the Congress-led coalition government in India.

The 122 zonal licences were issued in the 2008 to 85 firms, including the local units of Telenor and Etisalat, that were said by the Comptroller and Auditor General (CAG) to be fouled up.

The verdict also affects companies like Aircel, Idea and Tata.

Unitech Wireless (Uninor) is the company which is a joint venture between Telenor Group of Norway and Unitech Group, an Indian real estate company.