The CAG indicted former telecom minister A Raja for ignoring the advice of Prime Minister, finance and law ministries to allocate 2G spectrum to new players in 2008 causing a whopping revenue loss of over Rs 1.76 lakh crore.
The Performance Audit Report on the Issue of Licences and Allocation of 2G spectrum by the department of telecommunications was tabled in the Lok Sabha by finance minister Pranab Mukherjee.
The report of the CAG, which lent an edge to the clamour for A Raja's ouster as telecom minister, has also come down hard on the corporates who benefited from the controversial 2G spectrum allocation.
The report, which was tabled in Parliament on Tuesday, specifically focuses on how facts about a top industrialist's substantial stake in Swan Telecom — it far exceeded 10% — were concealed while applying for the 2G spectrum licence.
According to the guidelines, no entity can hold more than 10% stake in two telecom service providers operating in the same circle. Since a telecom company controlled by the industrialist — who also has interests in energy and entertainment — has a pan-Indian presence, Swan should have been disqualified. Yet, it stayed in the ring and went on to pip several established contenders. The industrialist, one of India's richest, has denied any link with Swan.
CAG's indictment of corporates for use of "fraudulent means" to qualify runs into several pages. The report lists not just companies but also the violations the auditor has found them guilty of. The licences issued to various companies floated by corporates such as Swan, Unitech, Loop and Datacom Allianz Infra involved several violations, the auditor has pointed out. As many as 85 of the 120 licences were illegal, the CAG has said.
The Performance Audit Report on the Issue of Licences and Allocation of 2G spectrum by the department of telecommunications was tabled in the Lok Sabha by finance minister Pranab Mukherjee.
The report of the CAG, which lent an edge to the clamour for A Raja's ouster as telecom minister, has also come down hard on the corporates who benefited from the controversial 2G spectrum allocation.
The report, which was tabled in Parliament on Tuesday, specifically focuses on how facts about a top industrialist's substantial stake in Swan Telecom — it far exceeded 10% — were concealed while applying for the 2G spectrum licence.
According to the guidelines, no entity can hold more than 10% stake in two telecom service providers operating in the same circle. Since a telecom company controlled by the industrialist — who also has interests in energy and entertainment — has a pan-Indian presence, Swan should have been disqualified. Yet, it stayed in the ring and went on to pip several established contenders. The industrialist, one of India's richest, has denied any link with Swan.
CAG's indictment of corporates for use of "fraudulent means" to qualify runs into several pages. The report lists not just companies but also the violations the auditor has found them guilty of. The licences issued to various companies floated by corporates such as Swan, Unitech, Loop and Datacom Allianz Infra involved several violations, the auditor has pointed out. As many as 85 of the 120 licences were illegal, the CAG has said.
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