The 2G (second generation) telecom spectrum allocation controversy of 2008, which the opposition had referred to as a Rs60,000-crore scam, has returned to haunt communications minister A Raja.
Parliament proceedings were disrupted once again on Wednesday over a newspaper report based on records of phone conversations between corporate lobbyist Nira Radia and several high-profile people, including Raja.
According to the report, the phone records indicated that corporate groups had a role in influencing Raja’s decision in the alleged 2G spectrum scam. Raja could not be contacted for comment.
The communications minister has been under attack from opposition parties ever since 2G licences were given to a string of companies — many without any experience in the telecom sector — at a throwaway price.
The allegation is that the government gave away scarce spectrum to companies, clubbed with licences, on a first-come-first-serve basis, rather than through an auction process. That is, an operator got start-up spectrum by paying pan-India licence fee of Rs1,650 crore. Also, many new players roped in foreign investors soon after acquiring the licences, thereby making a neat sum.
Raja has so far maintained that the government has continued with the prevalent practice of allocating 2G startup spectrum along with licences on a first-come-first-serve basis. But, the 2G spectrum allocation issue came under the scrutiny of various bodies, including the Central Vigilance Commission (CVC) and the Central Bureau of Investigation (CBI). Despite these investigations during the UPA-1 regime, Raja returned as the IT and communications minister in UPA-2. Raja is an MP of UPA ally DMK.
The government policy to allocate 2G spectrum on a first-come-first-serve basis is again being criticised as the ongoing auction of 3G (third generation) spectrum has resulted in exceedingly high bids. Against the pan-India reserve price of Rs3,500 crore, the 3G auction has yielded close to Rs9,000 crore in 16 days of bidding. The 3G bidding is nowhere near the closing line yet.
Rubbishing the comparison of price of 3G spectrum with that of 2G, Raja had on Tuesday told the media that rice under PDS (public distribution system) should not be compared with basmati. According to Raja, 2G is for the masses and 3G for those who can afford to pay much more.
Reacting to the report, AIADMK chief J Jayalalithaa demanded the dismissal of Raja over the spectrum scam. Jayalalitha said that CBI official Vineet Agarwal, who had investigated the case and was transferred later, should be brought back to continue the investigation. The CBI inquiry into the spectrum scam was necessitated following a serious indictment by the CVC, the AIADMK chief pointed out.
Meanwhile, the Central Board of Direct Taxes (CBDT) has clarified that the income tax department has not recorded any telephone conversation of influential businessmen, politicians and advertising professionals, as alleged in the newspaper report. The CBDT statement has added that “the income tax department does not intercept telephonic conversations except as authorised under the law. The provision is used in exceptional cases of suspected tax fraud / evasion involving security of the state. The procedure, as prescribed under the law, is strictly followed in all such cases.”
