2G: FinMin note hints at PC-Raja nexus
As FM, Chidambaram okayed Raja’s spectrum pricing in 2008
In a new twist to the second generation (2G) spectrum case, a note to the Prime Minister's Office from the finance ministry says this resource could have auctioned in 2008 if Home Minister P. Chidambaram, then the finance minister, had ''stuck to his stand''.
Union Home Minister P Chidambaram could now face the heat of 2G spectrum scam probe with a government document claiming that he as finance minister in 2008 had virtually agreed to then telecom minister A Raja’s formula for spectrum pricing.
The note prepared by Finance Ministry’s Deputy Director P G S Rao and sent to Prime Minister’s Office in March this year purportedly showed that Chidambaram was not in favour of changing the 2001 entry fee for the allocation of spectrum in 2008.
It said the Union Cabinet had in 2003 decided that the telecommunication and finance ministries would discuss and finalise spectrum pricing formulae, including the incentive for efficient use of spectrum.
In view of the development, the BJP said, the home minister should give an explanation and if does not do so the prime minister should drop him from the Cabinet. Left parties also maintained that the Home Minister should present himself for examination.
The note marked as “secret” claims that Chidambaram had in 2008 favoured treating the previous spectrum allocation as “closed chapter”.
“As a response to the Department of Telecommunication letter dated November 29, 2007, the then director (infra) initiated a note highlighting the need to revise the entry fee…This position paper was used by then finance minister as a basis of his ‘secret note’ to the prime minister on January 15, 2008, wherein an auction based mechanism was recommended for future allocation of spectrum (beyond the start up spectrum) with the spectrum allocation having been made in the past to be treated a closed chapter,” the note said.
Interestingly, the document prepared in the form of office memorandum claims that this has seen by the Finance Minister.
It also said that a Finance Ministry representative who attended the full telecom commission meeting on January 15, 2008, did not raise the issue of revision of entry fee.
Janata Party president Subramanian Swamy has sought direction from the Supreme Court to the CBI for including Chidambaram in the 2G probe for allegedly being in complicity with Raja. He submitted the set of documents in the apex court.
The CBI as well as Centre had opposed the move claiming that the probe in the matter is over with the charge sheet having been filed. They also claimed that it was for the trial court only to decide on any such plea.
The apex court, which has decided to monitor the probe into the scam last year, is to pass an order on the application filed by Swamy.
Notably, the document brought out clearly that then Finance Minister in his communication with the Prime Minister was not for revisiting the entry fee for the operators.
“The note of the Finance Minister (sent to the PM on January 15, 2008) did not deal with the need, if any, to revise entry fee or the rate of revenue share. The issue of revision of entry fee was taken up by the MoF subsequently in November 11, 2008. In a meeting held on January 30, 2008, between then Ministers of Finance and Telecommunications, it was noted by the then Finance Minister that he was for now not seeking to revisit the current regimes of entry fee or revenue share,” it said.
