2G Scam Verdict: STel Owner C Sivasankaran, Loop and Videocon to Seek Damages From Indian Govt

C Sivasankaran, the owner of STel licenses, is reportedly planning to take the telecom department to the Supreme Court next month, seeking compensation of around Rs 3,400 crore. Loop Telecom and Videocon Telecom have already revealed their intentions to seek compensation after a special court last week acquitted all 18 individuals including former telecom minister A. Raja and DMK leader MK Kanimozhi, besides related companies, accused in the 2G case.

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“I want my money back. I have lost Rs 3,400 crore that I had invested in the company overall. I had brought in equity and taken loans from Indian commercial banks and spent on network and people,” Sivasankaran was quoted by the Economic Times. He said that his company was penalised even though it was blameless. “The latest order will strengthen claims for a refund.”

Sivasankaran’s company STel had received telecom licences and spectrum in Assam, the Northeast, Bihar, Orissa, Himachal Pradesh and Jammu and Kashmir. He had subsequently sold a 42.7% stake to Bahrain Telecommunications (Batelco) for around $175 million. Batelco sold the stake back to its Indian partner for $175 million after STel’s licences were cancelled along with other licenses.

Batelco had won an international arbitration order claiming damages of around $211 million from Sivasankaran.

STel had operations in Orissa, Bihar, Himachal Pradesh, North East and Assam, and it was in the process of launching its services in Jammu and Kashmir when its licensed got cancelled. It had 3.6 million subscribers as of February 2012.