C Sivasankaran led, Siva group might be planning to close down its telecom business as the business has become unsustainable for the company to operate following cancellation of telecom licenses by the Supreme Court of India.

The Supreme Court of India had scrapped the validity of all 122 spectrum licenses that were granted to firms during the former communications minister A Raja’s time in office.

The court cancelled all the licenses on the ground they were issued in a “totally arbitrary and unconstitutional” manner. It also imposed a fine on three telecom companies that offloaded their shares after getting the licenses.

S Tel Pvt Ltd owned licenses in Assam, North-East, Bihar, Orissa, Himachal Pradesh and Jammu and Kashmir. The operator is estimated to have a subscriber base of about 36 lacks. The company said that it is unlikely to arrange bank funding for buying back licenses and has already asked its customers to opt for mobile number portability (MNP) to move to other operators to avoid disruption in services.

“Our infrastructure and media vendors have intensified disconnection of services, since the passing of the judgment by the Supreme Court, considering that there is now no chance of the banks disbursing funds,” the company said in a statement.