SC rejects plea for CBI inquiry against Sibal

The Supreme Court today rejected a plea to order a Central Bureau of Investigation (CBI) inquiry against Communications Minister Kapil Sibal for alleged favouritism shown to Reliance telecom companies.

The judges said there were several dimensions to the 2G spectrum distribution and they would review only the decisions of granting licences causing losses to the exchequer. The bench consisting of Justice G S Singhvi and Justice A K Ganguly did not want to expand the scope of the case. They also rejected a request for setting up a special investigation team into the complaint. They said those who had any grievance could move the appropriate authority.

According to the allegations, contained in an affidavit filed by the Centre for Public Interest Litigation, Reliance Communications had agreed to provide mobile services to 13 circles in May 2007 under a contract with Universal Service Obligation Fund (USOF). However, by December 2010, the company switched off most of these stations.

USOF issued show cause notices to Reliance Communications and Reliance Telecom and imposed Rs 50 crore per circle. However, instead of following this recommendation made by the officials, Sibal reduced the amount from Rs 650 crore to Rs 5 crore only, acting upon the Reliance letter that it has restored the services. This letter was written directly to the minister, bypassing the department of telecommunications, according to the petitioner’s counsel, Prashant Bhushan.