2G verdict will have no impact on foreign investments: Moily

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The Supreme Court judgment regarding cancellation of 2G licences will have no impact on the inflow of foreign investments in the country, Corporate Affairs Minister Veerappa Moily said here Monday.

"Everybody should know that every country has its own regulations... If there is a case of any distribution of a national asset that is contrary to the rule of law of a country, then one should know the consequences. Any honest dealing will be rewarded and there will be problem if there is dishonesty," Moily told reporters on the sidelines of a programme here.

In a blow to the government, the Supreme Court Thursday quashed all 122 licences for mobile phone services issued in 2008. In what also comes as a respite to some 45 million phone subscribers covered by the 122 licences, Justices G.S. Singhvi and A.K. Ganguly ordered that the services will carry on for four months, by which time the telecom watchdog will decide the future action plan.

The licences were issued to companies, which now operate under the brand names Uninor, Loop, Etisalat, Videocon, STel, Tata Tele, Idea and MTS. But not all the licences that are currently with them pertain to the tainted ones awarded in 2008.

When asked about the reported apprehensions of the foreign business houses regarding their investments not being safe, Moily said: "This is only a small segment of the business that is being done by foreign companies. There are large segments of business that is being done and that is unaffected. Any honest business done by the foreign business houses will be rewarded."

Moily also dismissed reports that the telecom space can be anti-competitive after the cancellation of 122 licenses and said: "A competition law is there and the competition regulatory body will get into it to stop it."