CAG report indicts Raja in spectrum scam: Report

Agencies

New Delhi, 10 November 2010: Endgame appears to be nearing for Union IT and Communications Minister A Raja with the Comptroller and Auditor General (CAG), as per reports, holding him personally responsible for the sale of 2G spectrum at ludicrously low rates.

 

The CAG report on the alleged massive scam, which is said to have resulted in a loss of up to Rs 1.76 lakh crore to the national exchequer, has been submitted to the President and the Finance Ministry.

 

"Yes, we have submitted the final report to the government. I cannot disclose the findings of the report. It is up to the government when it will be tabled in the Parliament... may be within a fortnight or it may take long," Comptroller and Auditor General of India Vinod Rai told reporters here.

 

The month long winter session of the Parliament began on November 9. As per a report published in a English daily, Wednesday, the CAG has accused Raja of ignoring advice from the PM and ministries of law and finance, and the recommendations of the Telecom Commission to allocate 2G spectrum to a select group of companies at dirt cheap prices.

 

Terming the 2G spectrum as undervalued, the CAG held that the allotment price was not realistic, which has caused a revenue loss of Rs 1,76,700 crore to the government. The CAG report said the price at which the spectrum was allotted in 2008 was based on 2001 prices, which was quite low and has resulted in a loss to the government exchequer.

 

Moreover, out of the 122 new licences issued in January 2008, as many as 85 licences to 12 companies were granted to entities which did not meet the prescribed DoT eligibility conditions, the CAG said. CAG has also slammed the Telecom Regulatory Authority of India (TRAI) for not stepping in to prevent irregularities.

 

The telecom ministry had, however, hit at the CAG saying the policy decisions cannot be "assailed" as arbitrary and debunked CAG’s assertion that 2G spectrum was allocated in an arbitrary manner. "Decisions (on spectrum) taken on the basis of New Telecom Policy of 1999 and the Cabinet decision of 2003, coupled with periodic and respective TRAI’s recommendations.”

 

"(This) cannot be assailed by the audit as arbitrary or cause of exchequer loss until and unless the entire policy devised with legislative backing is changed or modified by the
same authorities concerned," DoT had said in its reply to the Comptroller and Auditor General.

 

The Supreme Court had on October 29 pulled up the CBI for its tardy progress in the investigations in the 2G spectrum allocation scam. "You (CBI) have not done anything. Is that the way Government functions? Do you follow the same standards in other cases? One year has (already) gone by," a bench comprising Justices G S Singhvi and A K Ganguly said.

 

Oppositions ups the ante

 

After tasting blood by forcing the removal of Ashok Chavan as Maharashtra chief minister over the Adasrh Housing Society scam, the Opposition appears to be in no mood to let go of the momentum and is going all out with its demand for the sacking of Raja.

 

Amid pandemonium in the Parliament - both houses were adjourned for the day - following demands by the Opposition to set up a Joint Parliamentary Probe (JPC) to probe the Adarsh, Commonwealth and spectrum scams, the Congress appears in no mood to let go of Raja at this juncture.

 

This despite its increasing uneasiness over his presence in the Cabinet, clearly coalition considerations are at play. Congress spokesperson Jayanthi Natarajan has said that the party cannot comment on allegations of Raja’s involvement in the 2G spectrum scam as the matter is sub judice.

 

"The matter is in focus for long, but it is sub judice and until a decision comes it is difficult to comment," Natarajan said. "The ultimate prerogative will be of Prime Minister, they are coalition partners," she said.

 

Raja’s party the DMK is said to be solidly backing him and is no mood to give their principal opposition the AIADMK an advantage, a year before Tamil Nadu goes to polls. For the record, AIADMK boss Jayalalithaa has asked every citizen to send a telegram to the President seeking Raja’s removal.