No undue advantage given to Idea Cellular: DoT

CAG, in a report, stated that Idea Cellular was given undue benefit of Rs 684.59 crore

The Department of Telecommunications (DoT) has said that the set off of Rs 684.59 crore, which was adjusted with the price of fresh spectrum that Idea Cellular has bought through auction in November 2012, was given following the rules and regulations.

 

In a recent communication to the Comptroller and Auditor General of India (CAG), DoT has stated that the provision of set-off was allowed against the earnest money and the payment due in the event of spectrum being won in the auction. The Empowered Group of Ministers (EGoM) considered the circumstances in which the set off was to be allowed and the terms thereof, it noted, adding that the decision was taken according to EGoM and is consistent with the Supreme Court judgment.

 

The CAG can not comment on and object to the matters of policy, DoT said in its reply to CAG audit note, adding that in the event such a set off is perceived to be illegal, then the appropriate course is to seek legal opinion of the Attorney General instead of rendering its own opinion in the matter.
 

Earlier, in a report, CAG has stated that Idea Cellular was given undue benefit of Rs 684.59 crore. 

 

As per rules and regulations of the unified access service (UAS) licences, the set-off allowed was not in the nature of refund as it was allowed only to the companies that participated and were successful in the auction, DoT communicated.

 

Idea Cellular had, in November 2012, won licences in seven circles for Rs 2,031.31 crore. The set off amount was adjusted for the first year’s instalment.

In a separate communication, DoT has said that the set off of Rs 1626.32 crore, which was adjusted with the price of the fresh spectrum that Sistema Shyam Teleservices has won through auction in March this year, was given following the rules. Earlier, in a report, CAG has stated that Sistema Shyam Teleservices has received undue benefit of Rs 1626.32 crore.

 

In March, Sistema Shyam Teleservices, which operates under MTS brand in India, has won by 3.75 MHz of spectrum in Delhi, Kolkata, Gujarat, Karnataka, Tamil Nadu, Kerala, Uttar Pradesh (West) & West Bengal for Rs 3,639 crore. However, the company did not require paying anything this year, as Rs 1,626 crore was adjusted that it had paid in 2008 for the licences which were quashed by the Supreme Court order that cancelled 122 operating permits in February 2012.