In a new development in the ongoing 2G spectrum scandal case, the Supreme Court of India has scrapped the validity of quashed 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.

The Telecom Regulatory Authority of India (TRAI) has also been directed to make special recommendations on allocation of 2G licenses. The bench comprising bench comprising justices G S Singhvi and A K Ganguly has asked the government to take steps on recommendations of TRAI and has said that new auction will take place in four months.

The Supreme Court also said in a ruling that the trial court will decide if to accept a plea by Janata Party chief Subramanian Swamy to make home minister P. Chidambaram a co-accused in the case. The highest court in the country had given a two-week time frame to the trial court to decide the matter.

Special CBI Judge O P Saini has already reserved his order for February 4 on a separate petition of Swamy to begin legal proceedings against Chidambaram.