Govt buys time on 2G scam with another probe

In a desperate bid to buy some time on the 2G scam and pacify an agitated opposition in Parliament, which has been in deadlock after the Comptroller & Auditor General (CAG) report indicated massive financial irregularities in 2G spectrum allocation, the government has announced yet another probe into the issue.

As many as four probes - by the Income Tax (I-T) department, the Enforcement Directorate, the vigilance department and the Central Bureau of Investigation (CBI) - are already currently underway.

Sibal's probe will be the fifth and will once again focus on telecom operators, while ignoring the role of the man in the eye of the storm - former telecom minister A. Raja.

The firms which had obtained licences for 2G spectrum will be issued notices for suppressing facts and failing to comply with roll-out obligations while securing licenses and airwaves in 2006 and 2008, Sibal said.

"Many of these companies were not eligible for the 2G licenses granted in 2007 and 2008 and went through a self-certification process. We will send notices to 85 companies asking them why their licences should not be cancelled for suppressing facts.

They will be given 60 days to respond", communications minister Kapil Sibal said on Monday.

He said his ministry will also issue notices in 119 instances for not complying with roll- out obligations to telcos which were given licenses in 2006 and 2008. These firms may be liable to pay damages to the Centre on this score.

Of the 119 licencees, 81, he said fell under both categories - of ineligibility to get licences, as well as for failing to meet roll- out obligations - while 38 will be served notice for not meeting roll- out obligations alone as spelt out in the licenses. Officials said that among the new operators, the companies are Uninor, Loop Telecom, S Tel and Videocon.

The ministry, Sibal said, will start issuing the notices in the next three to four days.

"This has serious implications for transparency of process. It allows companies to get ahead of the queue on basis of first come first served, in that they did not register first with the registrar of companies," Sibal further said.

Sibal addressed his first official press conference after taking over the additional charge of communications portfolio after his predecessor A. Raja was forced to resign, following his name figuring in the 2G scan.

The issue has caused adjournment of the parliament for the 12th working day.

Sibal assured that the government will investigate and ensure that action is taken against those firms that had manipulated and had self- certified regarding their financials and main line of business, specified in their memorandum of association, to get licenses for telephone services.

The minister was of the view that many companies that got licences may not have disclosed all facts, adding that if roll- out obligations were not fulfiled within 52 weeks, licences of those telecom operators were liable to be cancelled.

"We are not averse to Supreme Court monitoring investigations into irregularities in 2G spectrum allocation," said Sibal adding that the audit report of CAG is only an opinion.

The minister also informed that it will ask the ministry of corporate affairs to investigate the CAG allegation that Swan Telecom got licenses and spectrum in 2008 as a front for the Anil Ambani- run Reliance Communications. Swan had bagged licences in all 13 circles where RCom already operated.

This was against the rules, which bar the same operator from holding more than one licence in any single circle.

Courtesy: Mail Today