The Attorney General is believed to have refused to budge from his earlier stand that the foreign telecom players cannot claim damages for losing 2G spectrum licences in the wake of Supreme Court’s February 2 verdict cancelling 122 licences.

This has come as a severe blow to operators like Sistema and Telenor who have invoked Bilateral Investment Promotion and Protection Agreements (BIPAs) to seek damage.

The legal views of Attorney-General of India, Goolam E. Vahanvati are contrary to the contention of ministtry of external affairs (MEA) and the department of commerce which feel  that foreign companies that these players can seek protection under BIPA.

Vahanvati is learnt to have stuck to his stand after giving a serious thought to the issues raised by the MEA and the commerce ministry.  According to PTI sources, he is believed to have said that  his earlier views do not require reconsideration.

“The arbitration tribunals do not function under domestic law. For the outside world, the Indian State is a single entity and the conduct of any organ entity is attributable to the state of India,” the Ministry of External Affairs had stated.

Vahanvati said that the constitution of India has a clear demarcation of the respective jurisdictions of the various organs of State.

“It recognizes the principle of separation of powers. The judiciary exercises powers within its own sphere and under our constitutional setup the executive exercises no control over the judiciary. As such, the government of India, cannot be held responsible for judgements of the Courts", he said.