2G spectrum scam: CAG reports on loss placed before SC

The two draft reports were placed by an NGO, Centre for Public Interest Litigation, which had alleged irregularities in allocation of spectrum.

Parts of the reports were placed on October 8 by the NGO before the apex court which had asked the Department of Telecom to respond to charges of large-scale irregularities and favoritism allegedly on telecom minister A Raja.

In the petition, it was alleged that there was corruption of Rs 70,000 crore.
The report had made adverse remarks on the allotment of radio frequencies to Loop Telecom and Unitech Wiresless.

In its application, the NGO has placed on record two recent CAG draft reports and claimed that the ineligible firms - Loop Telecom and Unitech Wirless, a group firm of real estate major Unitech -  were alloted 2G spectrum.

The NGO has further contended that the illegal allotment of spectrum has cost the national exchequer Rs 1.4 lakh crores as per proper audit calculations by CAG.

According to the report, "DoT chose not to abide by its own guidelines and issued 122 Licences without detailed verification of the documents submitted by the applicants."
"DoT failed to verify the false/altered documents submitted by the applicants and continued with the process of issuing licences based on these documents which proves that the process of grant of UAS Licenses in January 2008 was neither fair nor fool proof in a hasty manner," it said.

The NGO further claimed that CAG auditors had on September 20, 2010 wrote to DoT on the issue of licence and spectrum to ineligible Loop Telecom.

"The submission of the applications for UAS License for 21 service areas by Loop Telecom Limited to DOT on 3rd September 2007 with altered MOA without full disclosure of the factual position was deliberate misrepresentation of the facts and was done with fraudulent and malafide intentions of obtaining UAS license from DOT, though they were not eligible to apply for the UAS licenses for this circle on that date."

"Loop Telecom Limited did not fulfil the eligibility criteria for obtaining the UAS licence at the time of application and as such, the application was required to be rejected. But same could not be done as department failed to verify the facts and figures submitted by the applicant," it said.

The Supreme Court which was to hear tomorrow Raja's case adjourned it to October 29 on the request of government.

Earlier, on October 8, during the last hearing, the apex court had asked the Department of Telecom to respond to the CAG report pointing out largescale irregularities and favoritism allegedly by telecom minister A Raja.

The Apex Court had asked government to go through the draft report alleging that the Ministry of Telecom ignored the advice of the Law Ministry and the Prime Minister and alloted the license by favouring "ineligible" companies at lower rate on first-in basis by arbitrarily deciding the cut-off date.

The Bench had posted the matter for October 22 without perusing the status reports filed by CBI and Enforcement Directorate into the investigations in the case.
It returned the reports filed in sealed covers to both the agencies stating that it will considered them in the next hearing.