Top of Form

/w EPDw UKMTY3 /w EWCw LG8+Cz

STATES STATES STATES

February 21, 2011

HOME NATION WORLD SOUTH ASIA BIZ SPORTS CRIC SCI-TECH SHOWBIZ HEALTH RECIPES EXCLUSIVE VIDEOS BLOGS PICS NRI
Search Her

Google

Zee
ISO-8859-1 Search

partner-pub-4239 FORID:11

| Jobs | Site map | Make Homepage

Home Nation

CAG report tabled, indicts A Raja in 2G

scam
Updated on Tuesday, November 16, 2010, 15:36 Tags: LOK Sabha, CAG Report, 2G Scam Share Buzz up!
TRANSLATE INTO:

Powered by

Translate

New Delhi: Government Tuesday tabled in Parliament the CAG report on 2G spectrum allocation, whose reported extracts have created a political storm and led to the resignation of Telecom Minister A Raja. The report was placed in the Lok Sabha and Rajya Sabha amid uproar by the Opposition which demanded a Joint Parliamentary Committee probe into the alleged scam. It was tabled in the Lower House by Minister of State for Finance S S Palanimanickam, who belongs to the DMK, and in the Upper House by his ministerial colleague Namo Narayan Meena. Raja, who is a member of the Lok Sabha, was not present in the House when the report was tabled as soon as it reassembled at noon after an hour-long adjournment. The report has pegged the revenue loss to the exchequer - based on auction held for 3G radiowaves- at Rs 1.76 lakh crore due to non-auctioning of the spectrum. Questioning the entire procedure employed, the CAG noted that the ministry of communication and IT "decided to go ahead with arbitrarily deciding that the cut-off date for issuance of Letters

of Intent would be advanced to September 25, 2007 and applications received would be decided on FCFS (first-come first-served) basis." In November, 2007, Prime Minister Manmohan Singh had written to the telecom ministry suggesting introduction of "transparent methodology" of auction, "revision of entry fee" in the "back drop of inadequate spectrum and large number of applications received for fresh licences." The CAG highlighted that the Law Ministry had suggested setting up of an Empowered Group of Ministers to discuss the large number of applications and spectrum pricing, but the telecom ministry rejected it saying "the need for forming and EGoM arises when a new policy is being framed and in this particular issue no new policy for grant of UASL (unified access service licences) was being framed." The auditor, however, said the "contention of the DoT is untenable as the rejection of the advice" of the Law Minister to have detailed deliberations on the issues in the EGoM on the ground that changes in policy might lead to litigation "goes against the well established and time-tested procedures of functioning of the government and the collective responsibility of the Union Cabinet." The report said the presumptive loss caused to the exchequer through spectrum allocation to 122 licencees and 35 dual technology licences in 2007-08 was Rs 1,76,645 crore. It pegged the figures on the basis of 3G auction held earlier this year in which the government mopped up over Rs 67,000 crore.

In the 77-page report, the CAG said the figure of the presumptive loss has been determined on the basis of various indicators like 3G auction and a price offered by an operator in 2007, besides scarcity value, nature of competition, business plans envisaged, number of operators and growth of sector. The auditor pointed out that spectrum was allotted by DoT to the existing operators beyond the contracted limits (6.2 Mhz) without imposing any upfront charge for such allotment. On the values determined through various indicators, the presumptive value of 2G spectrum on account of grant of 157 licences in different circles during 2007-08 would be in the range of approximately Rs 58,000 crore to Rs 1,52,038 crore. The value of spectrum held by 13 operators for 51 circles based on the 2001 rates works out to be Rs 2,561 crore, while its value based on above indicators like 3G auction would be Rs 12,00037,000 crore. The CAG said that 85 out of 122 new licences issued to 13 companies in 2008 were granted to ineligible companies as all of them (85) did not have stipulated paid-up capital at the time of application. Further 45 out of 85 licencees were issued to companies which failed to satisfy conditions of

main object clause in the memorandum of Association (MoA), the government auditor said. The CAG said the process of giving dual technology licences to leading telecom firms including Reliance Communications and Tata Teleservices "lacked transparency and fairness", and equal opportunity was denied to other similarly placed operators who could apply for use of dual technology only after formal announcement of the policy. Noting that this approval (dual technology use) had violated Cabinet decision of 2003 to allow additional spectrum at 2001 prices, the auditor said, "Deviation from a Cabinet decision should normally be with the approval of Cabinet. "However, in the present case, such a crucial decision to permit service providers to offer access using combination of technologies (CDMA, GSM and/or any other) under the same licence with dual spectrum allocation was taken without the matter being referred to the Cabinet." After the extracts of the report came out in the media last week, the Opposition launched a blistering attack on the government demanding Raja's removal and a JPC probe. Raja has maintained that he has done no wrong and distributed the licenses as per the policies followed by his predecessors since 1999. He initially refused to resign but finally quit on Sunday after intense pressure.

Related Stories

Cong steers clear of SC comments on PM`s role in 2G spectrum scam CAG faults DoT for failing to recover Rs 679 cr penalty 2G scam: SC questions PM`s silence JPC into 2G spectrum allocation necessary: BJP CAG is an important watchdog: PM CAG report tabled, indicts Raja

In Video

Parliament adjourned The presentation of the report is expected to provide fresh fodder to the Opposition which is not satisfied with Rajas resignation and is pressing for a Joint Parliamentary probe to unearth the

entire scam, a demand rejected by the government. However, the Lok Sabha was adjourned for the day and the Rajya Sabha, first till 2 pm and then later for the day. The government has rejected as "meaningless" the demand for setting up of a JPC. Earlier, Opposition members in both Houses stormed the well soon after they assembled for the day, raising slogans 'We want JPC' . The Congress members sought to counter the Opposition by waving newspapers carrying reports of Karnataka Chief Minister B S Yeddyurappa's alleged involvement in allocation of land to his sons. BJP members, who stormed the well, were joined by those from Shiv Sena, AIADMK, Samajwadi Party and RJD. Later Pranab Mukherjee met leaders from across the political spectrum over lunch but he also failed to break the deadlock. PTI

New Delhi: Government Tuesday tabled in Parliament the CAG report on 2G spectrum allocation, whose reported extracts have created a political storm and led to the resignation of Telecom Minister A Raja. The report was placed in the Lok Sabha and Rajya Sabha amid uproar by the Opposition which demanded a Joint Parliamentary Committee probe into the alleged scam. It was tabled in the Lower House by Minister of State for Finance S S Palanimanickam, who belongs to the DMK, and in the Upper House by his ministerial colleague Namo Narayan Meena. Raja, who is a member of the Lok Sabha, was not present in the House when the report was tabled as soon as it reassembled at noon after an hour-long adjournment.

The report has pegged the revenue loss to the exchequer - based on auction held for 3G radiowaves- at Rs 1.76 lakh crore due to non-auctioning of the spectrum. Questioning the entire procedure employed, the CAG noted that the ministry of communication and IT "decided to go ahead with arbitrarily deciding that the cut-off date for issuance of Letters of Intent would be advanced to September 25, 2007 and applications received would be decided on FCFS (first-come first-served) basis." In November, 2007, Prime Minister Manmohan Singh had written to the telecom ministry suggesting introduction of "transparent methodology" of auction, "revision of entry fee" in the "back drop of inadequate spectrum and large number of applications received for fresh licences." The CAG highlighted that the Law Ministry had suggested setting up of an Empowered Group of Ministers to discuss the large number of applications and spectrum pricing, but the telecom ministry rejected it saying "the need for forming and EGoM arises when a new policy is being framed and in this particular issue no new policy for grant of UASL (unified access service licences) was being framed." The auditor, however, said the "contention of the DoT is untenable as the rejection of the advice" of the Law Minister to have detailed deliberations on the issues in the EGoM on the ground that changes in policy might lead to litigation "goes against the well established and time-tested procedures of functioning of the government and the collective responsibility of the Union Cabinet." The report said the presumptive loss caused to the exchequer through spectrum allocation to 122 licencees and 35 dual technology licences in 2007-08 was Rs 1,76,645 crore. It pegged the figures on the basis of 3G auction held earlier this year in which the government mopped up over Rs 67,000 crore.

In the 77-page report, the CAG said the figure of the presumptive loss has been determined on the basis of various indicators like 3G auction and a price offered by an operator in 2007, besides scarcity value, nature of competition, business plans envisaged, number of operators and growth of sector. The auditor pointed out that spectrum was allotted by DoT to the existing operators beyond the contracted limits (6.2 Mhz) without imposing any upfront charge for such allotment. On the values determined through various indicators, the presumptive value of 2G spectrum on account of grant of 157 licences in different circles during 2007-08 would be in the range of approximately Rs 58,000 crore to Rs 1,52,038 crore. The value of spectrum held by 13 operators for 51 circles based on the 2001 rates works out to be Rs 2,561 crore, while its value based on above indicators like 3G auction would be Rs 12,00037,000 crore.

The CAG said that 85 out of 122 new licences issued to 13 companies in 2008 were granted to ineligible companies as all of them (85) did not have stipulated paid-up capital at the time of application. Further 45 out of 85 licencees were issued to companies which failed to satisfy conditions of main object clause in the memorandum of Association (MoA), the government auditor said. The CAG said the process of giving dual technology licences to leading telecom firms including Reliance Communications and Tata Teleservices "lacked transparency and fairness", and equal opportunity was denied to other similarly placed operators who could apply for use of dual technology only after formal announcement of the policy. Noting that this approval (dual technology use) had violated Cabinet decision of 2003 to allow additional spectrum at 2001 prices, the auditor said, "Deviation from a Cabinet decision should normally be with the approval of Cabinet. "However, in the present case, such a crucial decision to permit service providers to offer access using combination of technologies (CDMA, GSM and/or any other) under the same licence with dual spectrum allocation was taken without the matter being referred to the Cabinet." After the extracts of the report came out in the media last week, the Opposition launched a blistering attack on the government demanding Raja's removal and a JPC probe. Raja has maintained that he has done no wrong and distributed the licenses as per the policies followed by his predecessors since 1999. He initially refused to resign but finally quit on Sunday after intense pressure. Parliament adjourned The presentation of the report is expected to provide fresh fodder to the Opposition which is not satisfied with Rajas resignation and is pressing for a Joint Parliamentary probe to unearth the entire scam, a demand rejected by the government. However, the Lok Sabha was adjourned for the day and the Rajya Sabha, first till 2 pm and then later for the day. The government has rejected as "meaningless" the demand for setting up of a JPC. Earlier, Opposition members in both Houses stormed the well soon after they assembled for the day, raising slogans 'We want JPC' . The Congress members sought to counter the Opposition by waving newspapers carrying reports of Karnataka Chief Minister B S Yeddyurappa's alleged involvement in allocation of land to his sons. BJP members, who stormed the well, were joined by those from Shiv Sena, AIADMK,

Samajwadi Party and RJD. Later Pranab Mukherjee met leaders from across the political spectrum over lunch but he also failed to break the deadlock. PTI

1|2|

i agree with the above documents. don`t worry guys easily earned money don`t stay with much more time. Those fraudulent people must be punished

ch.pradeep - TENALI

We talk about the world`s best, one of the world`s fastest growing economic country......where the world`s largest scam is also possible even in 21st century. How strange and how shame for these common people who pays taxes humbly and suffers with the inflations & corruptions thereafter. JAAGO INDIAN JAAGO. We are standing on 21st century, even after 64 years of Independence our ruling party fails to remove poverty. How much years still they need ???????

Himanshu Sekhar Sahoo - Cuttack

i agree

d - dc

I am agree with above written comments..really this man cross the limits.This scam is 1000 times bigger than Bofors scam.What the hell they think they never going to be caught..rascals must be hang till death...and all same like them.who cheated our motherland....

Ruchin Dobriyal - Pune

this person should be punished seviourly,,,-Spectram Corruption by A. Raaja (Ex.Central Ministor., DMK`s MP) :- Net Loss to Govt. 176381 Crores. With this amount....658608 Schools, or 171531 Normal Hospitals, or 37930 Collages, or 1763 Big Hospitals., can be Built., or Even 1563766 KM Roads or 34930 KM Electric Rail Tracks can be Constructed....Wake Up INDIAN....Better Late than Never.... Think & Comment on it...,,

hemant soni - vadodara

punish this rascal..... put away him from indian citizen ship. he is not an indian.... he is more worse than terrorists.. he must be punishable....

bitu - chennai

Comptroller Auditor General of India has tabled its report in regard to 2 G spectrum Allocation , As it has clearly pointed out that 1.76 Lack crores have been witnessed . As it is very strange that Why the Government failed to fetch this 1.76 Lack crores which would have been utilized for Development of India , Education , providing basic civic amenities in Rural areas like safe drinking Water , Roads , schools .As it is really a loss that would have been utilized for the betterment of the Indians .

RAJAT KUMAR MOHINDRU - JALANDHAR CITY .PUNJAB

Dear Congress party worker, will you please protest at 10th Janpath, against this corruption. IF you have little shame or love for country, then do not blame RSS. Ask your party boss, how many and more are involved in this ``ADARSH TELECOM GHOTALA``

Debendra Jena - Mumbai

With due respect and care to the exposing of the scams, stabilty of Nation should also be considered. We can try calculating in Nett instead of only negatives.

Veekay - Mumbai

Under current environmental changes people usually mix some salt in wheat flour but here it appears that, flour was mixed in salt, instead.Has this time of scams on such a large scale crossing all limits not broken world records? How they percieved public? Can`t current inflamationary pressures and undue burdens on common people be due to this & this type of scams? How this scale of scams could survive??? Will govt. correct for future to respect Indian public for that undue pressure don`t come on them?

Kumar -

Page: 1 2 TERMS OF USE: The views represented here are not neccesarily endorsed by www.zeenews.com and its allied websites. All messages will be moderated and no message that has inflammatory, abusive, derogatory language or any language deemed unfit for publication by the editor will be displayed. Though it will be endeavoured that as many messages as possible be displayed, there will be time lag between the submission and publication of the messages. The website reserves the right to publish or reject any message.

Name :

*Name

Place :

Email :

*Email

Comments :
Post

Pak defence spending exceeds budgetary limits by Rs 60 bn Nepali national held for carrying banned Indian currency notes Afghanistan suicide blast kills 28 Sri Lanka lift banner ban by `killjoy` cops Pak ISI believes US gunman was with CIA

Gaddafis son warns of `rivers of blood` in Libya Obama did nothing to earn Nobel: Rumsfeld Northeastern parties join hands to fight polls India to ratify convention against corruption Govt sets up committee to monitor Libya crisis `Gandhi family has black money in Swiss banks` Telangana: Violence in parts of Hyderabad Pak ISI believes US gunman was with CIA

Obama, back up, India has got Sheela! Sheela is not only jawan, but has a sharp mind too. This Sheela is not slippery at all.

Parliament: Limits of Protest

World Cup 2011 News | Exclusive | Blog | Wish India | Pick Your ideal XI | In Pics | History | Schedule | Expert Speak | Videos | Your View | On Facebook | On Twitter |

Arab Uprising News | Interview | Fall of Mubarak | In Pics | Exclusive | Libya | Bahrain |

Left Day in Pics: 21st Feb Day in Pics: 20th Feb Day in Pics: 19th Feb Day in Pics: 18th Feb Day in Pics: 17th Feb Day in Pics: 16th Feb Day in Pics: 15th Feb Valentine`s Day Day in Pics: 14th Feb Day in Pics: 13th Feb

Day in Pics: 21st Feb

Day in Pics: 20th Feb

Day in Pics: 19th Feb

Day in Pics: 18th Feb

Day in Pics: 17th Feb

Day in Pics: 16th Feb

Day in Pics: 15th Feb

Valentine`s Day

Day in Pics: 14th Feb

Day in Pics: 13th Feb Right

Loading...

JPC: PM likely to make statement tomorrow

26/11 verdict: Maha govt to file appeal

Headlines Top 10

Maya pulls up officials during Noida visit

Budget session begins

Kasab`s death penalty upheld

Will the govt emerge unscathed?

Will the govt emerge unscathed? II

Will the govt emerge unscathed? III

Adarsh scam: RTI activist threatened

Related Stories Cong steers clear of SC comments on PM`s role in 2G spectrum scam CAG faults DoT for failing to recover Rs 679 cr penalty 2G scam: SC questions PM`s silence JPC into 2G spectrum allocation necessary: BJP CAG is an important watchdog: PM CAG report tabled, indicts Raja

In Video

``Contact Us : Privacy Policy : Legal Disclaimer : SMS to 57575 : Register : On The Channel : Jobs With Us : Complaint Redressal Copyright Zee News Limited. All rights reserved.
Bottom of Form