DoT files affidavit in SC; denies allegations of revenue loss

Facing allegations of causing revenue loss of Rs 1.76 lakh crore, the telecom ministry today said that government auditor CAG had no jurisdiction to investigate policy decisions.

Top telecom official said that all decisions on awarding of licences were as per policy of 1999 and were followed by his predecessors in the BJP-led NDA regime and also in the UPA regime.

At the same time, the ministry also filed an affidevit before the Supreme Court which is hearing a petition filed by an NGO which alleged irregularities in distribution of licences in 2008 by Telecom Minister A Raja.

The DoT has asserted in the affidavit that all licences along with 2G spectrum were given "as per law and in keeping with the extant policy and procedures".

It also rejected allegations of favouring companies while alloting 2G spectrum and opposed any court-monitered enquiry by the Central Bureau of Investigation (CBI) or by forming any special investigative team (SIT) in this issue.

"DoT has throughout acted in public interest on the basis of the policy determined by the government of India. There is no case made out by petitioners (NGO) for monitoring the investigation by CBI or an SIT," said DoT in its affidavit.

The affidavit said that all decisions with regard to 2G spectrum allocation in 2008 were taken as per government policy that was being followed by all his predecessors since 1999.

The ministry said that the CAG had similar harsh observations even in 1999 when the operators were migrated from fixed licence fee to revenue sharing regime.

And the licences along with start-up 2G spectrum were also allocated in 2008 according to the same policy, ministry officials said.

The CAG has submitted its latest report to the government saying non-auction of 2G spectrum in 2008 may have cost the exchequer up to Rs 1.40 lakh crore besides over Rs 36,000 crore on account of additional spectrum to existing players beyond 6.2 Mhz.

The officials pointed out that the additional 2G spectrum beyond 6.2 Mhz was given to the existing players by A Raja's predecessors free of cost.

"As no finding was given by Public Accounts Committee (PAC), the successive governments followed the same policy, including the present Minister A Raja," the affidavit said.

DoT also rejected the allegations made by a city-based NGO Telecom Watchdog that it alloted 2G spectrum to ineligible firms, without any proper verification.

It also rejected the allegation that it alloted spectrum to firms such Swan Telecom, in which Anil Ambani group Firm Reliance Communication has shares.

"Insofar Swan is concerned, the contention appears to be that it was ineligible since RCOM held some shares in the company. It is submitted that the allegation is without any basis. As per UASL guidelines, no legal person may hold more than 10 per cent equity in more than one access service licese company.

"On the date of the application, RCom held 9.9 per cent equity share is Swan Telecom. Rcom also held certain preferential shares in Swan Telecom, however, reference shares are not counted ... Hence it was within prescribed limit," submitted DoT.

DoT also denied the allegations that it ignored advise of Prime Minister, Finance Secretary and Ministry of Law and Justice (MoLJ) over allotment of spectrum.

"This is wholly incorrect," the DoT said adding that MoLJ advice to reffer the matter to Empowered Group of Ministers was "not necessary on such procedural issue, since no policy issue was to be examined".

It further said that "there was no difference of opinion between the two ministries", DoT and Ministry of Finance.

On allegations that the view of the finance secretary was disregarded, DoT said," on November 27, 2007, the Finance secretary had raised certain queries regarding the entry fee. This was replied by the Secretary, DoT. Thereafter, no further reference or communication was received".

On the charged that 2G spectrum was not auctioned to benefit some companies, DoT submitted, "the decision to not auction was taken on the basis of NTP 199 and 10th and 11th Five-years Plan and the recommendations of TRAI, under which a conscious policy decision was taken".

DoT affidavit was filed over the directions of Supreme Court, which had earlier issued notices over the petition filed by Telecom Watchdog and Center for Public Interest Litigation pointing figures towards  role of Telecom Minister A Raja.

The apex court had also issued notices to A Raja, CBI, ED and Income Tax department. In this, CBI and ED have filed their affidavits stating that they were not in a position at this stage to confirm or deny charges that Raja was involved in the alleged Rs 70,000-crore scam.

However, ED has said the investigations were on against companies that allegedly violated foreign exchange norms in the 2008 award of telecom licences.

During the last hearing on October 29, the apex court had slammed CBI for its "slipshod" investigations into the 2G spectrum allocation scam and said "the same minister (Raja) is still continuing today".

However, Raja's counsel had submitted before the apex court that "wrong impression" has been given by filing draft reports of the CAG to "sensationalise" the entire issue.