Exclusive privilege in respect of telegraphs, and power to grant licenses
Section 4 of the Indian Telegraph Act, 1885 deals with exclusive privilege in respect of telegraphs, and power to grant licenses. ] Within [India], the Central Government shall have the exclusive privilege of establishing, maintaining and working telegraphs: Provided that the Central Government may grant a license, on such conditions and in consideration of such payments as it thinks fit, to any person to establish, maintain o The Act came into force on 01 Oct 1885.
1[(1)] Within 2[India], the Central Government shall have the exclusive privilege of establishing, maintaining and working telegraphs:
Provided that the Central Government may grant a license, on such conditions and in consideration of such payments as it thinks fit, to any person to establish, maintain or work a telegraph within any part of 2[India]:
3[Provided further that the Central Government may, by rules made under this Act and published in the Official Gazette, permit, subject to such restrictions and conditions as it thinks fit, the establishment, maintenance and working--
(a) of wireless telegraphs on ships within Indian territorial waters 4[and on aircraft within or above 2[India], or Indian territoral waters], and
(b) of telegraphs other than wireless telegraphs within any part of 2[India].]
5[Explanation.-- The payments made for the grant of a licence under this subsection shall include such sum attributable to the Universal Service Obligation as may be determined by the Central Government after considering the recommendation made in this behalf by the Telecom Regulatory Authority of India established under sub-section (1) of section 3 of the Telecom Regulatory Authority of India Act, 1997 (24 of 1997).]
1[(2) The Central Government may, by notification in the Official Gazette, delegate to the telegraph authority all or any of its powers under the first proviso to sub-section (1).
The exercise by the telegraph authority of any power so delegated shall be subject to such restrictions and conditions as the Central Government may, by the notification, think fit to impose.]
6[(3) Any person who is granted a license under the first proviso to sub-section (1) to establish, maintain or work a telegraph within any part of India, shall identify any person to whom it provides its services by--
(a) authentication under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016); or
(b) offline verification under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016); or
(c) use of passport issued under section 4 of the PassportsAct, 1967 (15 of 1967); or
(d) use of any other officially valid document or modes of identification as may be notified by the Central Government in thisbehalf.
(4) If any person who is granted a license under the first proviso to sub-section (1) to establish, maintain or work a telegraph within any part of India is using authentication under clause (a) of sub-section (3) to identify any person to whom it provides its services, it shall make the other modes of identification under clauses (b) to (d) of sub-section (3) also available to such person.
(5) The use of modes of identification under sub-section (3) shall be a voluntary choice of the person who is sought to be identified and no person shall be denied any service for not having an Aadhaar number.
(6) If, for identification of a person, authentication under clause (a) of sub-section (3) is used, neither his core biometric information northeAadhaar number of the person shall be stored.
(7) Nothing contained in sub-sections (3), (4) and (5) shall prevent the Central Government from specifying further safeguards and conditions for compliance by any person who is granted a license under the first proviso to sub-section (1) in respect of identification of person to whom it provides its services.
Explanation.-- The expressions "Aadhaar number" and "core biometric information" shall have the same meanings as are respectively assigned to them in clauses (a) and (j) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016).]
Section 4, The Indian Telegraph Act, 1885 (Act 13 of 1885).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Referred to by 7
- Delhi Entertainments and Betting Tax Act s. 2 Definitions
- s. 8 Revocation of licenses
- s. 9B Crediting of sum to Consolidated Fund of India
- s. 19B Power to confer upon licensee powers of telegraph authority under this Part
- s. 20 Establishing, maintaining or working unauthorised telegraph. 20A. Breach of condition of license
- Maharashtra Entertainments Duty Act s. 2 Definitions
- Telecom Regulatory Authority of India Act s. 2 Definitions
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Vodafone Idea LTD vs Union of India Department of Telecommunications through Its Secretary
Court's Decision & Legal Precedent
The primary ratio decidendi are: (1) Spectrum constitutes a natural resource held by the government in sovereign trust and cannot be treated as property owned by corporate debtors subject to insolvency proceedings merely due to right to use granted under license; the question requires NCLT examination within two months as it is a substantial jurisdictional issue affecting the validity of insolvency proceedings initiated by telecom companies; (2) In spectrum sharing arrangements, the sharing operator has no liability for the original licensee's predecessor AGR dues as the sharing operator merely obtains right to use additional spectrum alongside its own spectrum - each operator remains liable only for AGR dues arising from spectrum it holds; (3) In spectrum trading arrangements, the buyer's liability for seller's predecessor AGR dues is determined by the Trading Guidelines - if entire spectrum is traded, buyer assumes seller's known past dues; if only partial spectrum is traded, buyer has no predecessor dues liability; any dues discovered after trade date are recoverable from buyer or seller jointly or severally at government discretion; (4) AGR dues determined by the Supreme Court judgment dated October 24, 2019 are final, binding and not subject to reassessment or fresh disputes; telecom operators must pay the determined amount through installment schedule without room for contesting the calculation; (5) The government as licensor retains sovereign privilege over spectrum allocation under Telegraph Act Section 4 and can enforce contractual conditions precedent (particularly payment of dues) before permitting license transfers or spectrum trading, notwithstanding IBC moratorium provisions, as these are conditions precedent to the right itself rather than post-right enforcement.
On this section: Establishes government's exclusive privilege in establishing, maintaining and working telegraphs; grants Central Government power to license telecommunications activities on specified conditions; foundation for spectrum allocation regime
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Tata Teleservices LTD vs Union of India through Its Secretary
Court's Decision & Legal Precedent
The core ratio decidendi is: (1) Spectrum is a natural resource held by Government under exclusive privilege per Section 4 of Telegraph Act, granted to licensees subject to contractual conditions including payment of AGR dues. While the question of whether spectrum can be subjected to IBC proceedings involves significant jurisdictional issues to be examined by NCLT, it is clear that AGR dues accumulated over nearly 20 years must be paid in full by all telecom service providers without dispute or reassessment. (2) Payment of these dues aggregating Rs. 1,43,271.74 crores (as calculated by Court) shall be made in 10 equal yearly installments commencing from April 1, 2021 to March 31, 2031, with 10% due by March 31, 2021. This represents modification of Government's proposal for 20-year timeline as inappropriate given the sovereign nature of spectrum rights. (3) For telecom service providers sharing spectrum under 2015 Guidelines, each operator remains liable for AGR dues proportionate to spectrum held; sharing operator bears no liability for past dues of original licensee. (4) For spectrum trading, seller must clear all pre-trading dues; buyer liable for post-trading dues except those discovered later and unknown at trading date, recoverable jointly or severally at Government's discretion. (5) All telecom service providers must pay dues without any reduction, waiver, or relief other than the approved 10-year installment schedule with NPV protection. No dispute, reassessment, or recalculation is permitted. Default in payment results in automatic interest, penalty and interest on penalty, and constitutes contempt of court. (6) The question of whether spectrum can be subjected to insolvency proceedings is a jurisdictional matter for NCLT to decide within two months, examining whether such proceedings constitute bona fide attempts at revival or subterfuge to avoid AGR payment.
On this section: Establishes exclusive privilege of Central Government to establish, maintain and work telegraphs; enables Government to grant licenses on such conditions and payments as it thinks fit; creates contractual relationship between licensor and licensee; forms basis of Government's sovereign rights over spectrum
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Bharti Airtel LTD vs Union of India through Secretary
Court's Decision & Legal Precedent
Spectrum, being a scarce recognized natural resource held in public trust by the Central Government under its exclusive privilege granted by Section 4 of the Indian Telegraph Act, 1885, cannot be treated as property owned by a corporate debtor and therefore cannot be subjected to insolvency proceedings under the Insolvency and Bankruptcy Code, 2016. A telecom licensee possesses only contractual usage rights over spectrum granted under the license agreement, not ownership rights. These contractual rights, being under agreement with a third party (the Government) retaining interest, fall outside the definition of 'assets' under Section 18 of the IBC as per the Explanation to that section. Accordingly, spectrum cannot be transferred in resolution plans or subject to resolution proceedings, and statutory Guidelines for Spectrum Sharing and Trading issued by the Department of Telecommunications must be adhered to. However, the jurisdictional question of whether spectrum can be subjected to insolvency proceedings and whether AGR dues are operational dues under the IBC requires consideration by the National Company Law Tribunal before any further determination.
On this section: Establishes Central Government's exclusive privilege to establish, maintain, and work telegraphs. License granted under Section 4(1) is a contract between licensor and licensee. Core provision for understanding government's sovereignty over spectrum and exclusive right to grant licenses on specified conditions including payment obligations.
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Union of India v. Association of Unified Telecom Service Providers of India
Court's Decision & Legal Precedent
Licences issued under Indian Telegraph Act s.4 on a revenue-share footing bind the licensee to pay Adjusted Gross Revenue as defined in the licence; DoT’s wider AGR definition prevails over the licensees’ narrower construction, and licensees cannot reprobate contractual licence-fee obligations under the s.4 grant.
On this section: s.4 — revenue-share licences; AGR definition and licence-fee obligations under the exclusive-privilege grant
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Bharti Airtel Ltd. v. Union of India
Court's Decision & Legal Precedent
A telegraph licence under Indian Telegraph Act s.4 is a contractual grant of the Central Government’s exclusive privilege; it does not confer a vested right to automatic licence/spectrum extension, and the Union may require spectrum to be obtained by auction consistent with the public-trust allocation of natural resources.
On this section: s.4 — exclusive privilege and power to grant licences; no vested right to spectrum/licence extension; auction permitted
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Vodafone Mobile Services Ltd. v. Union of India
Court's Decision & Legal Precedent
A telegraph licence under Indian Telegraph Act s.4 is a contractual grant of the Central Government’s exclusive privilege; it does not confer a vested right to automatic licence/spectrum extension, and the Union may require spectrum to be obtained by auction consistent with the public-trust allocation of natural resources.
On this section: s.4 — exclusive privilege and power to grant licences; no vested right to spectrum/licence extension; auction permitted
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Hughes Communications India Limited vs Union of India
Court's Decision & Legal Precedent
The essential ratio of this decision comprises: (1) Spectrum is a natural resource held by the State in trust, subject to exclusive privilege of Central Government under Section 4 of Indian Telegraph Act; licenses to use spectrum are contractual arrangements, not transfers of ownership; (2) Under Section 18 of IBC read with its Explanation, assets held under contractual arrangements (including spectrum licenses) are not included in the 'assets' that can be taken into control by resolution professionals; (3) The Public Trust Doctrine and public interest in spectrum allocation as a scarce natural resource prevents spectrum from being subjected to insolvency proceedings except as determined by NCLT after examination of bona fides; (4) In spectrum sharing arrangements, each operator remains liable for AGR dues on its own revenue from its own spectrum; the sharing operator assumes no liability for past AGR dues of the original licensee; (5) In spectrum trading arrangements, the seller must clear all dues prior to trading; if partial spectrum is traded, buyer assumes no liability for seller's past dues; if full spectrum is traded, buyer assumes all past dues unless dues are discovered post-trade; (6) AGR dues must be recovered through a reasonable payment schedule as approved by the Court; in the instant case, installments over 10 years with NPV protection rather than the proposed 20 years; (7) The NCLT has jurisdiction to examine whether spectrum can be subjected to insolvency proceedings and the bona fides of insolvency proceedings initiated by telecom operators; this Court declined to pre-judge that question.
On this section: Cited to establish the exclusive privilege of Central Government in establishing and maintaining telegraph/telecommunication services and the power to grant licenses subject to conditions and payments. The Court held that spectrum is a natural resource subject to government sovereignty and cannot be owned by private licensees but only used under contractual license agreements.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… the appellants was that the provision of providing DTH service is only one taxable event which cannot be split into various aspects to become amenable to taxation as both a broadcasting service and as entertainments. Reliance was also placed on the fact that the appellants are mandated to avail license granted under Section 4 of the Indian Telegraph Act, 1885 for providing telecommunication services. It was also highlighted that this Court in Bharat Sanchar Nigam Limited observed that the license under Section 4 of the Indian Telegraph Act is for providing telecommunication service and not for supply of any goods or transfer of right …
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… the appellants was that the provision of providing DTH service is only one taxable event which cannot be split into various aspects to become amenable to taxation as both a broadcasting service and as entertainments. Reliance was also placed on the fact that the appellants are mandated to avail license granted under Section 4 of the Indian Telegraph Act, 1885 for providing telecommunication services. It was also highlighted that this Court in Bharat Sanchar Nigam Limited observed that the license under Section 4 of the Indian Telegraph Act is for providing telecommunication service and not for supply of any goods or transfer of right …
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… the appellants was that the provision of providing DTH service is only one taxable event which cannot be split into various aspects to become amenable to taxation as both a broadcasting service and as entertainments. Reliance was also placed on the fact that the appellants are mandated to avail license granted under Section 4 of the Indian Telegraph Act, 1885 for providing telecommunication services. It was also highlighted that this Court in Bharat Sanchar Nigam Limited observed that the license under Section 4 of the Indian Telegraph Act is for providing telecommunication service and not for supply of any goods or transfer of right …
Made under this section, and citing it
22 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
- Flight and Maritime Connectivity Rules, 2018Rule 2018
- The Use of Very Low Power Radio Frequency Devices or Equipments for Inductive Applications (Exemption from Licensing Requirement) Amendment Rules, 2018.Rule 2018
- The Use of Wireless Access System including Radio Local Area Network in 5 GHz Band (Exemption from Licensing Requirement) Rules, 2018Rule 2018
- The use of low power and very low power Short Range Radio Frequency Devices (Exemption from Licensing Requirement) Rules, 2018Rule 2018
- The use of very low power Ultra-wideband devices (Exemption from Licensing Requirement) Rules, 2018Rule 2018
- The use of very low power Radio Frequency devices or equipments including the Radio Frequency Identification Devices, (Exemption from Licensing Requirement) Rules, 2014Rule 2014
- The Use of Very Low Power Radio Frequency Devices for indoor Applications in the 13.553 - 13.567 MHz frequency range (Exemption from Licensing Requirements) Rules, 2010Rule 2010
- The Indian Wireless Telegraphy (Demonstration License) (Amendment) Rules, 2009Rule 2009
- The Indian Wireless Telegraphy (Experimental Service) Amendment Rules, 2009Rule 2009
- The use of low power equipment in the frequency band 865-867 MHz for (RFID) Radio Frequency Identification Devices (Exemption from Licensing Requirement) Amendment Rules, 2006Rule 2007
- The use of very low power equipment in the Citizen Band 26.957- 27.283 MHz ( Exemption from Licensing Requirements) Amendment Rules, 2006Rule 2007
- The Indian Wireless Telegraphs (Amateur Service) Amendment Rules, 2005Rule 2005
- The Use of low power equipment in the Citizen band 26.957 - 27.283 MHz (Exemption from Licensing Requirement) Rules, 2005Rule 2005
- The use of low power Equipment in the frequency band 2.4 GHz to 2.4835 GHz (Exemption from Licensing Requirement) Rules, 2005Rule 2005
- The Radio, Television and Video Cassette Recorder Sets (Exemption from Licensing Requirements), Amendment Rules, 2001Rule 2001
- The Radio, Television and Video Cassette Recorder Sets (Exemption from Licensing Requirement), Rules, 1997Rule 1997
- The Indian Wireless Telegraphy (Experimental Service) Amendment Rules, 1988Rule 1988
- The Indian Wireless Telegraph (Foreign Ships) Amendment Rules, 1986Rule 1986
- The Indian Wireless Telegraphs (Amateur Service) Amendment Rules, 1984Rule 1984
- The Indian Wireless Telegraphs (Amateur Service) Rules, 1978.Rule 1978
- The Indian Wireless Telegraphs (Foreign Ships) Rules, 1973Rule 1973
- The Indian Wireless Telegraphy (Experimental Service) Rules, 1962Rule 1962
Another 3 instruments name this provision in its title or its text without being made under it.
Questions about Section 4
What have the courts held on Section 4 of the Indian Telegraph Act?
Vodafone Idea LTD vs Union of India Department of Telecommunications through Its Secretary (01 Sep 2020) is the leading judgment on this section among those set out below: Establishes government's exclusive privilege in establishing, maintaining and working telegraphs; grants Central Government power to license telecommunications activities on specified conditions; foundation for spectrum allocation regime. Another 6 judgments on this section are set out below, all of them from the Supreme Court. They run from 2015 to 2020.
How do I find court cases under Section 4 of the Indian Telegraph Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Indian Telegraph Act 1885 4, section 4 Indian Telegraph Act 1885, section 4 of the Indian Telegraph Act. People searching for it also type indian telegraph act 1885 section 4. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 7 reported judgments on this section are set out on this page, beginning with Vodafone Idea LTD vs Union of India Department of Telecommunications through Its Secretary (01 Sep 2020).
What should I read with Section 4 of the Indian Telegraph Act, and has it changed?
Its own text turns on section 2 ([Repealed.]), Telecom Regulatory Authority of India Act 3 (Establishment and incorporation of Authority), so none of them can safely be read on its own. 7 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 22: most recently Flight and Maritime Connectivity Rules, 2018 (2018), then The Use of Very Low Power Radio Frequency Devices or Equipments for Inductive Applications (Exemption from Licensing Requirement) Amendment Rules, 2018. (2018), and 20 more.
When did Section 4 of the Indian Telegraph Act come into force?
Section 4 of the Indian Telegraph Act, cited as Indian Telegraph Act 1885 4, came into force on 01 Oct 1885, having been enacted on 22 Jul 1885. It is in force as at the date shown on this page.
Other sections of this Act
- 7. Power to make rules for the conduct of telegraphs901 words
- 19A. Person exercising legal right likely to damage telegraph or interfere with telegraphic communication to give notice325 words
- 16. Exercise of powers conferred by section 10, and disputes as to compensation, in case of property other than that of a local authority325 words
- 3. Definitions316 words
- 5. Power for Government to take possession of licensed telegraphs and to order interception of messages296 words
- 17. Removal or alteration of telegraph line or post on property other than that of a local authority255 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 23 Oct 2026. This page is not a substitute for legal advice.