SC refuses to stay hike in tower fee

Jun 23, 2010 - S.S. Negi |

New Delhi

In a partial relief to the cellular operators in their dispute with the Municipal Corporation of Delhi on the cellphone towers, the Supreme Court on Tuesday restrained the civic body from encashing the fixed deposits deposited by the operators towards the enhanced fee. However, it refused to grant any interim stay on the enhanced licence fee.

The mobile companies were directed by the Delhi high court to make FDRs in the name of MCD in any nationalised bank in lieu of the fee imposed by it for erecting towers in its jurisdiction. The MCD had fixed Rs 1 lakh fee per mobile tower annually.
The Cellular Operators Association of India (COAI) had challenged the MCD move in the Delhi high court, claiming that the corporation had no power to impose such fee.
The HC had in an interim order directed the cellular companies to deposit 50 per cent of the fee in the form of FDRs in the name of MCD. Aggrieved by the HC order, the COAI moved the apex court to challenge the direction. However, the top court declined to stay the HC order but directed the MCD not to encash the FDRs till the disposal of the case.

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