NEW DELHI: The CAG has questioned the UPA government ’s decision allowing setoff of the non-refundable entry fee of Rs 5,476 crore paid by telcos whose 2G spectrum licences were later quashed, against the auction price payable for spectrum when the licences were auctioned in 2012-13. After the SC held all the 122 licences illegal in February 2012, the department of telecom (DoT) invited fresh applications in September 2012 for auction. The spectrum on auction was in the 1800 MHz and 800 MHz bands. “The conditions stipulated that the companies whose licences were quashed would be treated as ‘new entrants’ and would be required to fulfil the conditions as applicable to all,” said a CAG report tabled in Parliament on Friday.“Scrutiny of records of DoT pertaining to auction of 2G spectrum held in 2012-13 revealed that Videocon Telecom Ltd, Idea Cellular, Telewings Communications Services Pvt Ltd and Sistema Shyam Teleservices were allowed set-off of entry fee of Rs 5,476 crore,” CAG said.The auditor said the set-off was illegal as the entry fee was non-refundable. “Even the revenue of Rs 7,741 crore earned by these companies from the quashed licences since 2008 was not considered by DoT in the note for empowered group of ministers (which allowed the set-off). In this way, the licencees were apparently rewarded for losing their licences, as for the period of operation of the licence (2008-12), no entry fee was levied,” the CAG said.