2G scam Raja bent the rules says CAG

2G scam Raja bent the rules says CAG

New Delhi: The CAG report, tabled in Parliament on Tuesday, has made it clear that former Telecom Minister A Raja bent the rules for accommodating a few new operators in 2008 without reconsidering the old entry fee discovered in 2001, ignoring the advice of the Prime Minister.

Stating that the 2G spectrum allocation process lacked transparency, the report said Raja's decision had cost the exchequer Rs 1,39,652 crore and that 85 of the 125 licences issued were found to be given to companies which did not satisfy basic eligibility criteria.

It also points out that the PM's advice for transparency and the finance minister's advice that the EGOM should be consulted were ignored. It also says that the DoT did not follow guidelines and that the TRAI remained a helpless spectator to the entire mess.

The report has named Reliance communications saying that undue benefits were given to the company. According to CAG, Reliance communications was given spectrum ahead of others service operators.

Pointing out irregularities, the report said the spectrum was allocated to Swan Telecom by keeping out Idea Cellular.

Idea was at the No 2 position in the priority list whereas Swan was at 4th spot.

Meanwhile, the AIADMK said it wanted the allocated licences to be cancelled and a case filed against Raja.

In an unprecedented move, the CAG held a press conference on its finding in the 2G spectrum scam.

Deputy CAG Rekha Gupta said that the CAG audit revealed many discrepancies in allotment of Spectrum by DoT. "DoT had not practiced its own first cum first serve basis. The Law minister's advice was treated as out of context by the Telecom minister. The PM's suggestion was also overlooked," she said.

Gupta also said that loss ascertained by the CAG is only assumptive. "We have worked out a presumptive loss. There is a loss that cannot be denied."

Indicating that Raja was not the only one to be blamed for the 2G scam, Gupta said," We have not given any clean chit to anyone. CAG has put across the facts that were found during the audit."