2-G verdict: Videocon to sue Centre seeking Rs.10000 crores compensation

In what is a direct fall-out of the much-awaited verdict in the multi-crore 2G scam delivered last week, Videocon Telecom is likely to sue the Centre seeking a whopping Rs.10,000 crores as compensation now that the special CBI Court had not only acquitted all the main accused in the case for want of evidence against them but also said that there didn't appear to be irregularities in allocation of spectrum frequencies.

All the individuals and firms connected with the above-said case have been absolved by the Court as Justice O.P. Saini pronounced his verdict last Thursday, the day when the electorate in R.K. Nagar, Chennai voted in the by-polls.  Videocon is of the view that as it has been 'cleared' by the Court as innocent, the Centre was duty-bound to compensate it for the loss of its reputation and business in view of the allegations.

The case dates back to 2008 during the tenure of Union Telecommunications Minister A. Raja who was accused of committing scam/irregularities in allotting frequencies to leading telecom operators.  When the trial in the 9-year long case had been going on, the Supreme Court cancelled outright all the 122 allocations of high-end frequencies awarded to various telecom operators across the country.

Videocon, which had acquired the 2G Spectrum frequencies at a cost of Rs.1500 crores, suffered a lot by the apex Court's verdict.  Later, it participated in an auction in November, 2012 and procured 2G spectrum rights at Rs.2221.44 crores to operate its services in Bihar, Gujarat, Uttar Pradesh (East), Uttar Pradesh (West), Haryana and Madhya Pradesh.  Citing various losses and the loss of its reputation, Videocon is said to be mulling the prospect of seeking Rs.10000 compensation crores from the Centre.