New Delhi, Jan. 6: The Supreme Court today barred Aircel from transferring the ownership of its 2G airwaves while an alleged corruption case centred on a past deal involving the company was underway.

A bench, headed by Chief Justice J. S. Khehar, also said it would ask the government to cancel Aircel's 2G permits if two executives of its Malaysian parent Maxis Bhd did not appear in a trial court within two weeks.

The development comes as Aircel and Reliance Communications (R-Com) work towards a merger. Billionaire Anil Ambani-owned R-Com and tycoon T. Ananda Krishnan-controlled Maxis will hold an equal stake in the merged entity. The transaction, which was supposed to create a Rs 65,000-crore telecom giant, was expected to close in early 2017.

In July, Aircel completed the Rs 3,500-crore sale of its 4G spectrum to Bharti Airtel.

Ananda Krishnan and aide Augustus Ralph Marshall are among a number of people charged two years ago in relation to Aircel's sale to Maxis in 2006. Prosecutors allege that former telecom minister Dayanidhi Maran played an instrumental role in the deal. All the accused have denied any wrongdoing.

Malaysia's Maxis Group owns a 74 per cent stake in Aircel, which was granted 2G spectrum licences in November 2006.

"If T. Ananda Krishnan and Ralph Marshall of Maxis fail to appear in court on January 27, the 2G licence granted to Aircel in 2006 shall be seized," the apex court said. The next hearing date is on February 3.

The court also asked the department of telecom to look for an alternative service provider for Aircel's 65-million subscribers.

"We cannot tolerate a person using the national resource such as spectrum and not honouring the court notice," the bench said, adding that Krishnan cannot evade law.

The court directed the Centre to publish its order in two leading newspapers in Malaysia. It also said if the proposed order was passed, there would be no option for any of the accused to raise the issue of loss.

In September, a special CBI court in Delhi had issued bailable warrants against Krishnan, a Malaysian citizen, as an accused in the Aircel-Maxis money-laundering case.

The case relates to allegations of irregularities by Maran when he was the communications minister between 2004 and 2007. He allegedly stalled approvals needed by Aircel and forced then owner C. Sivasankaran to sell the company to Maxis Communications.

In return, Maxis invested around Rs 629 crore in Sun Group, owned by Maran's brother Kalanithi. It is alleged that once Sivasankaran sold his stake, Aircel almost immediately got all the necessary approvals from the government.

The court was hearing a plea filed by the Centre for Public Interest Litigation (CPIL), a non-profit organisation led by advocate Prashant Bhushan.