Turning the heat on telecom minister A. Raja, the Central Bureau of Investigation (CBI) has registered a case saying there was large scale corruption in the allocation of 2G (second generation) radio spectrum licences.

Raja, the second-time telecom minister in the UPA government, had repeatedly denied any corruption in the 2G allocation to private companies in 2008. The FIR filed by CBI on Thursday names no person but merely mentions unknown officials of the department of telecommunications (DoT) and unknown private persons and companies as the accused.

The agency raided the DoT office in Sanchar Bhawan and the search for incriminating documents was on till late night in the wireless planning cell and in the office of the deputy directorgeneral (access services) of DoT. Top bureaucrats of the ministry are under the CBI scanner. The FIR confirms allegations of "serious irregularities" in the award of the spectrum licenses and a criminal conspiracy woven between DoT officials and certain private companies.

However, telecom minister A. Raja ruled out resignation in the wake of CBI searches in his ministry. "The question of my resignation does not arise. All decisions on spectrum licensing have been taken in accordance with procedures laid down by Telecom Regulatory Authority of India (Trai) and in consultations with the Prime Minister," he told reporters.

But the CBI FIR said, "The licenses were awarded to these companies by putting a cap on the number of applicants against the recommendations of the Trai. The licences to these private companies were given on a first-come-first-served basis at the rates of 2001 - which were very low - without any competitive bidding." CBI has acted within days of the Central Vigilance Commission ( CVC) asking for a comprehensive CBI probe. "The CVC findings show the spectrum was not allocated at the present market- driven price, no auction process was followed and no bids were invited. We will now quiz senior DoT officials, including an IAS officer," a senior CBI official said.

"The scam could run up to Rs 22,000 crore. Firms which got the licences at throwaway prices later sold their stake to foreign operators at huge prices," he added. SOURCES said the CBI probe will concentrate on specific aspects like why DoT did not go for the auction process in accordance with Trai guidelines and instead opted for a firstcome- first- served approach.

It will also examine why licences were not issued at current prices and why no time cap was fixed for those who were given the licences.

" CBI will further analyse documents to ascertain if the DoT had cabinet approval for going ahead with its idea of not inviting global bids for such a big project," according to sources.

Two companies that got these licences in 2008 - Swan Telecom and Unitech - are allegedly under CBI investigation. Swan Telecom got the license for a mere Rs 1,537 crore. It then sold its stake to a foreign operator at nearly three times the amount within a few months. Unitech got the spectrum licence for Rs 1,650 crore from the DoT, which too, sold its stake to a Norwegian company for over four times this amount. " The end loser was the government, which could have earned thousands of crores more," said a CBI official.

In 2008, the government had issued new licences bundled with start- up 4.4 MHz spectrum at a fee of Rs 1,651 crore.

UNDER SCANNER

CBI will probe why DoT didn't go for the auction as per Trai norms & opted for a first-come-first-served approach.

It will also examine why licences were not issued at current prices and why no time cap was fixed for those who were given licences.

The scam could run up to Rs 22,000 crore. Firms which got the licences at throwaway prices later sold their stakes to foreign telcos at big prices.

Two firms that got these licences in 2008 - Swan Telecom and Unitech - are under CBI investigation.

Courtesy: Mail Today