India’s top court yesterday upheld its decision to cancel 122 2G licences, which were awarded in 2008 under controversial circumstances.

Reuters reports that four firms affected by the February 2011 decision – Russia’s Sistema and local Indian firms Idea Cellular, Videocon and Tata Teleservices – had separate appeals rejected by India’s Supreme Court, the country’s highest court of appeal.

However, those affected that successfully rebid for licences in re-auctions of the airwaves last November will be allowed to use their recently acquired spectrum to launch services immediately, the court said. But those that did not participate have been ordered to cease to operate “forthwith”.

“The telecom companies which have been unsuccessful in the bidding and those after the cancellation of the licences did not participate in the fresh auction are directed to cease from continuing from operation forthwith and the successful bidders will immediately start in their respective circles,” the court said.

Idea Cellular acquired licences in seven zones where its operating permits were due to be scrapped. Videocon, which is to lose 21 permits, won back airwaves in six of them.

But Sistema, which operates under the MTS brand in India and had all but one of its 22 regional licences cancelled, did not participate in the November auctions and now faces closure.

Sistema yesterday called the rejection of its appeal “unfortunate,” but is thought to be considering participating in fresh auctions next month.