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RE: SPECTRUM 2G -SONIA-RAJA- WHO ARE BENEFECIARIES

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Tension in Rajas fiefdom

DMK,AIADMK In Poster War In Perambalur,Workers Come Close To Clash

TIMES NEWS NETWORK

Perambalur: Unrest prevailed in Perambalur,the hometown of Union communications minister A Raja,after a poster war broke out between the DMK and the AIADMK over the spectrum allocation controversy.
Perambalur,about 280 km from Chennai,has started facing the heat of the political storm around Raja as DMK men walked along the road near the new bus-stand on Sunday afternoon,brandishing logs.
Women panicked and watched in shock as the men shouting derogatory slogans against AIADMK leader J Jayalalithaa,who has been stridently demanding Rajas ouster,started tearing the flex boards erected by AIADMK men.
An AIADMK youth was also attacked by a mob of DMK men.This led to AIADMK mobilising its cadres at its district office to retaliate,but they gave up even as their rivals started blocking the road and burning an effigy of Jayalalithaa.
For the people of Perambalur,the spectrum scandal was something much removed from their daily life,but the days events came as a shock.Locals found it distressing that the police stood by as mute witnesses as agitators went on a rampage pulling down flex boards and blocking the road.I dont know about spectrum or whether Raja is corrupt.But are all other politicians clean I dont think he should resign, said Ramalinga Chettiar,a fruit vendor.
For a politician synonymous with DMK in Perambalur for more than a decade,and an icon for dalits here,Raja should quit to prove his integrity, said a lecturer in a private college.
M Pari,DMK union secretary,alleged that AIADMK men engaged in mischievous propaganda to tarnish Rajas image.Police should arrest those behind the posters stuck all over the town, he said.
However,AIADMK men claimed that their posters were only in retaliation for another set of posters pasted by DMK men slamming Jayalalithaa for corruption.The AIADMK posters demanded that Raja resign.This is the second incident that has rocked the town in the last few days over Raja.A few days ago,a group of DMK men pelted stones into a hall where the AIADMK was holding a meeting.

BURNING ISSUE: Supporters of the DMK burning an effigy of AIADMK general secretary Jayalalithaa after the two groups clashed over the demand to recall A Raja from the Centre

Guru · Guru

I-T dept probe into 2G licencees

Dept Investigation To Focus On Possible Tax Evasion In Spectrum Allocation

New Delhi:In a development that could spell more trouble for embattled telecom minister A Raja,the income tax department has begun probe into charges of alleged bribing and possession of disproportionate assets against some of the new operators,who were awarded licences under the 2G spectrum deal,and telecom ministry officials.
The department had also begun an investigation into the tax returns of all the telecom operators who were granted 2G spectrum licences to ascertain their registered profits and find discrepancies,if any,official sources said.
The department,according to sources,will specifically look into the angle of tax evasion in the entire process of allotment of the 2G spectrum through under-stating profits and escalating losses to allegedly facilitate bribes and kickbacks.
The department is using its intelligence wing to gather financial information on all the stakeholders and individuals who were part of the spectrum allocation deal which has been marred by controversies including on the role of Raja.The Comptroller and Auditor General has reportedly put the revenue loss to exchequer at Rs 1.40 lakh crore in addition to another Rs 36,700 crore on allocation of spectrum beyond contractual limit to existing nine operators.In 2008,the DoT had issued 2G spectrum to eight new operators at Rs 1,658 crore for pan-India operations.
The Department of Telecom (DoT) has asserted that there was no loss to the exchequer due to distribution of new licences in 2008.
The CAG report is also understood to have castigated telecom minister A Raja for ignoring the advice of finance and law ministries on allocation of 2G spectrum licences to benefit a few operators.On his part,Raja asserted that he had not done anything wrong and had only followed the policies pursued by his predecessors.
Sources said the I-T department had shared certain documents with the CBI,probing the 2G spectrum allotment,and is in the process of obtaining documents from the investigating agency which related to communication regarding bidding and awarding of contract between the telecom ministry and the winners of the 2G spectrum.
The companies which were allotted spectrum include Unitech Wireless Ltd (rebranded as Uninor),Loop Telecom,S Tel,Datacom Services (now known as Videocon Mobile ) and DB Group-promoted Swan Telecom (now Etisalat DB Telecom).The ministry had earlier told the SC that the CAG did not have the authority to question the policy decision as per which licences were issued to new players in 2008.AGENCIES

Guru · Guru

RAJAS SWANSONG
CAG refutes Rajas claim of following 2003 policy

Shalini Singh | TNN

New Delhi: In the eye of a political storm,telecom minister A Rajas latest defence against the CAG report has been that he followed existing policy since 2003.However,an examination of the CAG report on the alleged 2G spectrum scam shows that in the process of indicting Raja and arriving at the revenue loss caused by his policies,the CAG minutely examined this claim and dismissed it.
DoT deviated from its declared first-come-first-served (FCFS) policy though the MOCIT (ministry of communications & information technology ) maintained that it was continuing with the policy of processing applications.
The CAG has given scathing comments tearing apart Rajas claims that he had followed the procedure and precedents in allocating licences/ spectrum followed by his predecessors since November 2003.The issue relates to the very definition of a now controversial FCFS process of allocating spectrum.Raja had shunned auctions in favour of FCFS,which according to the CAG,led to a revenue loss of Rs 1,76,379 crore.
Contrary to the DoTs claim,it now emerges that the implementation of FCFS since 2003 was done through processing of applications in a chronological order based on the receipt of date of application in each service area.LoIs were issued in the same order to eligible companies and each company had 15 days for payment of entry fees and submission of bank guarantees.Applications for each circle would be processed in this order.
CAG,however,found that DoT switched the definition of FCFS from date of application to date of compliance of LoI,translating to time of payment.
This change according to the CAG is not only a deviation from the existing procedure but is in fact not the accepted principle for FCFS being followed by DoT.The impact of this deviation means that companies who applied even a year in advance could fall back in the queue purely because they could not rush their demand drafts before others.The CAG has also stated that the ministry issued another press release on the same day (2.45 pm) asking all applicants to assemble at DoT headquarters within 45 minutes (ie by 3.30 pm) to collect letters in response to their applications.
78 out of the 120 applications were able to comply with the LoI by making payments worth thousands of crores on the same day.CAG while making a serious indictment on the officers of DoT states,evidently,these applicants had advance information on the issue of these notifications by DoT which enabled them to take appropriate advance action to draw the DDs and prepare other relevant documents for complying with the LoI conditions.
Essentially,the CAG has trashed Rajas claims that he followed procedures that existed since 2003 and shown how rules were bent to benefit companies by giving them advance information to help them jump the queue.

Guru · Guru

As Raja got call to quit,Stalin & Maran bros were at a bash

Jaya Menon | TNN

Chennai: As high drama over A Rajas resignation following the 2G spectrum controversy took centrestage on Sunday,subtle dynamics in Tamil Nadus first family were at work on the sidelines in Chennai.As cameras flashed and grabbed images of a combative Raja and a tense Kanimozhi in Delhi on Sunday evening,back home the Maran brothers were at a dinner bash along with close family members and friends,including their uncle,MK Stalin in a star hotel in the city.Party sources maintained it was just a family get-together.
As the harried DMK MPs dodged inquisitive journalists ahead of what threatened to be a stormy Parliament session on Monday morning,Kalanidhi and Dayanidhi Maran were playing hosts at a lavish dinner for close family members and friends in Chennai.Stalin,who had a series of public functions to attend during the weekend in western Tamil Nadu,flew into the city from Coimbatore in the evening and drove straight to the hotel.
Karunanidhis older son,MK Alagiri,who has distanced himself from recent events centred around the spectrum controversy,also flew into Chennai from Madurai on Sunday.Alagiri has been a notable absentee from all the high points of the Raja episode he has not attended a single day of this Parliament session so far.He was also conspicuously absent at party discussions in Chennai to tide over the crisis,busy as he has been preparing for his sons wedding in Madurai on November 18.But he was among the guests at the dinner.
While differences within the DMKs first family have seemingly been resolved since a reunion two years ago,there are factors at work which reveal certain divisions.This has been apparent all through the Raja crisis.While Karunanidhi is said to be Rajas strongest backer,it was the persistent efforts of Kanimozhi and her mother Rajathi Ammal that ensured that the dalit senior got a cabinet berth.Kanimozhi continued to back Raja and provided the beleaguered minister moral support.
It was well-known that Dayanidhi Maran had been keen on the telecom portfolio which he had to give up rather prematurely following a May 2007 feud within the family that lasted nearly one-and-a-half years.The face-off between Alagiri and the Maran brothers led to DMK sympathisers going on an arson and violence spree in Madurai resulting in the death of three employees of Dinakaran,a Tamil daily owned by the Maran brothers.
While the family reunited in December 2008,subtle differences persisted.Stalin continued to be close to Dayanidhi Maran while Alagiri maintained a distance.As for Kanimozhi,who had been kept away from the high profile December 2008 reunion where all the family members posed for a happy picture together for the media,she has remained outside the Maran circle.
jaya.menon@timesgroup.com

ALL IN THE FAMILY: A file photo of Stalin,Dayanidhi Maran and Alagiri with DMK president M Karunanidhi

Guru · Guru

CBI MOVES IN FOR THE KILL,TO GRILL RAJA

It Has Identified Rajas Alleged Role In Spectrum Allotments

Dhananjay Mahapatra | TNN

New Delhi: Stepping up its probe into the 2G spectrum scam,CBI is expected to question A Raja about his role in specific instances of alleged irregularities.
A day after he resigned from the Union Cabinet in the wake of a huge uproar in Parliament over the 2G spectrum allocations,the CBI has activated its planned line of investigations that was impeded by the continuance of Raja in the Cabinet.With the decks cleared for his questioning,the CBI is working hard to frame questions on the basis of sensitive information the agency has gathered following a detailed scrutiny of hundreds of the files it had lifted from the Department of Telecom shortly after it registered an FIR in October last year.
The CBI appears to have established how the advancing of the cut-off date for making applications for allotment of spectrum from October 1,2007 to September 25,2007 by a notification dated October 10,2007 was designed to benefit certain companies.By this process,over 350 applicants were eliminated in one stroke.
The CBI has documented its findings in its status report to the apex court,which is still in the sealed cover.It expressed its reluctance to disclose them in an affidavit on the ground that the disclosrue would allow the suspects/accused to tamper with evidence.
What could worry the former telecom minister is that the Enforcement Directorate too has started examining the case actively for the alleged violation of provisions of stringent Prevention of Money Laundering Act (PMLA) as well as under Foreign Exchange Management Act (FEMA).
The ED is expected to act in tandem with CBI regarding collation of evidence as is evident from its affidavit before the SC.It had said it has already registered a enforcement case information report (ECIR) on March 9,2010 on the lines of the CBI FIR dated October 21,2009.
The directorate,which also had given its status report in a sealed cover to the SC,had said it registered the case for the purposes of locating the proceeds of crime and its attachment and confiscation generated by the accused persons after committing the schedule offence and to prosecute the person involved in money laundering.
On September 13,the SC had issued notices to Raja,CBI,DoT,ED and directorate general of income tax (DGIT) on an appeal filed by NGO Centre for Public Interest Litigation alleging the role of the then minister and others in the scam.

Guru · Guru

CAG audit report has Rajas notings

Josy Joseph | TNN

New Delhi: The report also demolishes Rajas claims that he went by the first-come-firstserved (FCFS) concept followed in the past by the Department of Telecom,accusing him of tampering with even that system to favour select private companies.What is more,the auditor found that 13 applicants were ready with demand drafts drawn on dates prior to the press release being issued,proof that they were aware of the ministers move.
The CAG audit is unique in many ways.For perhaps the first time in the history of CAG,the auditor has provided as an annexure file the notings of a cabinet minister in order to indict him.Rajas personal notings that altered even the FCFS policy are part of the CAG report annexure.Under the approved FCFS practice,all applications were first received in the central registry section of DoT,where the date of receipt and serial number are posted,and seniority was decided based on this.However,Raja altered this,by applying FCFS on the basis of who first complied with the letter of intent conditions such as bank guarantee and entry fee.While the CAG has not endorsed any particular amount as the loss to the national exchequer,it has applied at least three assessment methods.At the maximum,Raja has caused the exchequer a loss of over Rs 1.77 lakh crore,it says.
The auditors findings on private companies are damning.Of the 232 applications received from 21 companies till the changed cut-off date,121 applications from 15 applicant companies were found eligible.

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PM faces tough queries from SC

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Karuna rakes up brahmin-dalit distinction to attack Jaya

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RE: SPECTRUM 2G -SONIA-RAJA- WHO ARE BENEFECIARIES

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Swamy seeks high-level security for Raja

`TWO WOMEN BEARING SLAVIC NAMES TRYING TO CONTACT HIT MEN TO SILENCE RAJA' “The Prime Minis- ter must direct the external affairs ministry to ask the US government to share bank transfer records regarding the spectrum deal.

"It is maintained in a communication facility at Fort Meade in Maryland State”

Former telecommunications minister A.

Raja has found an unusual friend in Janata Party president Subramaniam Swamy.

Mr Swamy has expressed his concern over a threat to Mr Raja’s life and has urged the Prime Minister to put Mr Raja under ‘high level security cover.’ “Two European women bearing Slavic names have been trying to contact hit men in Dubai to silence Mr

Raja forever as he is key to embarrassing information about some of those in power today,” Mr Swamy said in his letter to the PM.

He as also urged the Prime Minister to direct the external affairs ministry to ask the US government to share bank transfer records regarding the spectrum deal.

“It is maintained in a communication facility at Fort Meade in Maryland State,” he said in the letter.

Mr Swamy also said that Manmohan Singh need not not resign for his “inaction” on his petition for sanction

to prosecute former telecom minister in the 2G Spectrum allocation scam.

“Those Opposition parties which are demanding his resignation are wittingly or unwittingly participating

in the conspiracy, launched by those who are beneficiaries of the lion share of the loot in the 2G scam, to quit,” he said.

Mr Swamy said this was done because Dr Singh forced the resignation of Mr Raja two nights ago thus risking revelations of who got the loot.

The Supreme Court had on Tuesday was critical of the long delay on the part of the Prime Minister in taking a decision on sanction for prosecution of Mr Raja which was demanded by Mr Swamy.

Guru · Guru

It was hurly, burly but wise

Jayalalithaa bats like Sehwag, not like Dravid.

Her aggressive approach has now put the DMK on the defensive

ALTHOUGH J. JAYALALITHAA'S statement that she was prepared to give the support of her MPs and also get others to make up for any loss that might be caused to the Congress by splitting with the Dravida Munnettra Kazhagam (DMK) was called an offer of support by the media, I consider it more as a challenge to the Congress Party.

The All-India Anna Dravida Munnetra Kazhagam (AIADMK) leader was in effect telling the Congress that it cannot hesitate to take action against former telecom minister A. Raja any longer on the ground that the DMK would withdraw support. She disarmed the DMK. Whether the Congress accepted her socalled offer or not, she stood to gain.

If the Congress decides to ditch the DMK and opt for an alliance with the AIADMK, it could together sweep the forthcoming elections in Tamil Nadu. If the Congress does not take up her offer, she still stands to gain, for she would have exposed the Congress as being handin-glove with the DMK on the issue of 2G spectrum.

Also, she gave the jitters to DMK chief M.
Karunanidhi -he was already not very sure about what the Congress was going to bargain for in the Assembly elections, and now Ms Jayalalithaa had empowered the Congress to stand up against the DMK. He could no longer threaten to pull down the Central government.

With this, Ms Jayalalithaa delivered a message to the people that if the Centre did not act against Mr Raja, it could only mean that others were involved. Thus, with a single statement, she set a new political agenda. Mr Karunanidhi, who considered the telecom ministry as his family property, now had to watch silently as the ministry went to Kapil Sibal. This could happen only because Ms Jayalalithaa made her politically sagacious move of assuring the Congress.

Now it is up to the Congress and the Prime Minister to order a thorough probe into the 2G spectrum scandal and see that all those who are guilty are punished. Her so-called offer to the Congress was indeed a wise move. It surprised political watchers, but then Ms Jayalalithaa bats like Sehwag, not like Dravid. Her aggressive approach put the DMK on the defensive.

Though Gulam Nabi Azad has said the Congress would stick to the DMK in Tamil Nadu, one cannot rule out the possibility of wiser leaders deciding otherwise. If the Congress fails to take advantage of Ms Jayalalithaa's statement, they would continue to live not only with the DMK but also with the spectrum scam.

CHO RAMASWAMY is magazine editor, author and political analyst

Guru · Guru

ஸ்பெக்ட்ரம் ஊழல் பணத்தில் வாங்கிய சொத்துக்கள் -வெளியாகி இருக்கும் பட்டியல் !

Posted on நவம்பர் 17, 2010 by vimarisanam - kavirimainthanஸ்பெக்ட்ரம் ஊழல் பணத்தில் வாங்கிய

சொத்துக்கள் -வெளியாகி இருக்கும் பட்டியல் !

இரண்டு நாட்களுக்கு முன்னர் ஒரு இடுகை
எழுதி இருந்தேன் – இந்த திருட்டுப் பணத்தில்
வாங்கிய அசையும் மற்றும் அசையா சொத்துக்களை
முடக்க நடவடிக்கை எடுப்பார்களா என்று கேட்டு !

இன்று இந்த பெரிய மனிதர்கள் சேர்த்து இருக்கும்
மற்றும்
சேர்க்க முயன்று கொண்டிருக்கும்
சொத்துக்களைப் பற்றிய பட்டியல் ஒன்றினை
இன்று வெளியிட்டிருக்கிறது ஜூனியர் விகடன் -

அதிலிருந்து சுருக்கமாக -

1)லண்டன் அருகே ஹன்ஸ்ப்ரேர் என்கிற தீவு -
பல ஆயிரம் கோடி ரூபாய் பெறுமானமுள்ளது.

2)மலேசியாவில் பிஸியான ஜே.பி. ஏரியா
அருகே சுமார் 600 ஏக்கர் அளவிற்கு மூங்கில்
எஸ்டேட்.

3) சென்னை ஒட்டேரி அருகே பல மாடி
பில்டிங் ஒன்று. ( கட்டப்பட்டு வருகிறது )

4) பழைய மகாபலிபுரம் சாலையில் பல மாடி
அபார்ட்மெண்ட் ஒன்று.(கட்டப்பட்டு வருகிறது )

5) சென்னைக்கு வெளியே சிறு நகரம் ஒன்றில்
பெரிய மாளிகை ஒன்று.(கட்டப்பட்டு வருகிறது)

6) திருச்சி மாவட்டத்தில் ஒரு பிரபலமான
கல்லூரி பல நூறு கோடி ரூபாய் விலையில்
(ரெடிமேட் )ஏற்கெனவே
விலைக்கு வாங்கப்பட்டுள்ளது.

சிபிஐ வசம் இந்த தகவல்கள் ஏற்கெனவே
உள்ளதாகக் கூறப்பட்டுள்ளது. இதற்கு மேல்
கைது செய்வது, வழக்கு தொடுப்பது,
நடவடிக்கை எடுப்பது போன்றவை –
ஆளும் கட்சியின்,(மத்திய அரசின் )
விருப்பத்தைப் பொறுத்தே இருக்கும்.

பி.கு. இதை எழுதி முடித்த நேரத்தில்
செய்தி வந்து கொண்டிருக்கிறது.எனவே
மீண்டும் தொடர்கிறேன் –

இதில் தொடர்புடைய சில ‘பெரிய’ இடங்கள் -

கலைஞரின் உயிர் காக்கும் மருத்துவக்
காப்பீட்டுத் திட்டத்தின் உரிமையாளர்கள்,
(ஸ்டார் க்ரூப், துபாய் )

அனில் அம்பானி ( தம்பி )

இன்னும் பல பெயர்கள் தொடரலாம் !

இப்போது கூட – மக்கள் உயிர்ப்புடன் செயல் பட்டால்
நிறைய செய்யலாம். செய்ய வைக்க வேண்டும் -

பதவியிலுள்ள ( அதிகாரமுள்ள )
உச்ச நீதி மன்ற நீதிபதியை கொண்டு ஒரு
விரைவு நீதிவிசாரணை நடத்த வேண்டும்.

தொடர்புடையவர்களின் சொத்துக்கள்
(முக்கியமாக பாஸ்போர்ட் ) முடக்கப்பட வேண்டும்.

வழங்கப்பட்ட லைசென்சுகள்
உடனடியாக ரத்து செய்யப்பட்டு – மீண்டும் புதிதாக
ஏலம் விடப்பட வேண்டும்.

இந்த ஊழல் அரக்கர்களைக் காக்க முயற்சிக்கும்,
வக்காலத்து வாங்கும் அரசியல்வாதிகளை -
மக்கள் நன்கு “கவனித்து” – “ஆவன”
செய்ய வேண்டும்.

செய்வார்களா

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ECCI ETA STAR

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RE: SPECTRUM 2G -SONIA-RAJA- WHO ARE BENEFECIARIES

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Coastal Energen is an arm of Coal & Oil Group of Dubai (C&O Group) 1200 MW power plant in Tuticorin

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Trai wants 69 licences of six firms cancelled

Telecom regulator Trai on Thursday cracked the whip on six telecom players, five of which are new, recommending that the 69 licences given to them be cancelled for not meeting the roll-out obligation.

The crackdown comes in the wake of the 2G licence allocation scam, where cheap licences were awarded to new telecom firms in 2008, costing the exchequer a loss of `1.76 lakh crore.

Trai’s recommendations came on a day when Mr Kapil Sibal, who has been given additional charge of the telecom ministry after Mr A. Raja was forced to resign, held a meeting with senior telecom ministry officials. The Trai recommendations are learnt to have been discussed during this meeting.

The recommendations could spell trouble for the new telecom companies as the government will find it

exceedingly difficult not to act on them as these have come just two days after a s CAG report, which found e gross irregularities in the s issue of licences to new t firms, was tabled in Parliament.

The CAG report has led to mounting Opposition attacks on the government for gross irregularities in 2G spectrum allocation.

However, even if the telecom ministry does act on the Trai recommendations, there is a likelihood of the companies whose licences are cancelled challenging the decision in court.

Among the five new telecom companies against whom Trai has acted are Loop, Etisalat (Swan), Uninor, Sistema and Videocon, said sources. The sixth company whose licences have been recommended for cancellation by Trai in some circles is Aircel, which has been around for a considerable length of time, having started services in 1999 in southern India.

India is divided into 22 telecom circles and an operator has to take a separate licence for each circle in which it wants to operate.

The companies whose licences have been recommended for cancellation for not meeting the rollout obligation are Loop (14 licences), Sistema (10 licences), Uninor (eight licences), Etisalat (two licences) and Aircel (four licences), said sources.

According to the telecom department’s roll-out obligations, operators have to start services in 90 per cent of the service area in metros, 10 per cent in district headquarters of the states and in other service areas within 12 months of the date of award of licence.

Some 31 licences have been recommended for can

cellation due to poor services. These include Etisalat (13 licences), Videocon (10 licences), Aircel (one licence), Loop (six licences) and Sistema (one licence), according to sources.

The CAG report has said that 70 per cent of the new licences were given to companies which were not eligi ble on the date of filling of the application.

It also found that some of these companies got licences because Mr Raja had tinkered with the “firstcome-first-serve policy” of his department.

Meanwhile, Sistema denied that it had not met the rollout obligation.

“Amongst the new telecom operators, Sistema Shyam TeleServices Ltd (SSTL) was the first company to launch its services. The company has complied with all its rollout obligations in all the 22 telecom circles and has already secured over seven million voice subscribers and over 3,00,000 data customers,” the company said in a statement.

Guru · Guru

Guru · Guru

No need to sing paeans of PM: SC to SG

Dhananjay Mahapatra | TNN

New Delhi: The occasion was far too grim,the stage unsuitable and the audience too serious for Solicitor General Gopal Subramaniam to attempt but he-is-an-honorable-man defence for his client Prime Minister Manmohan Singh.
Subramaniam,however,unabashedly sang paeans of the PM when the Supreme Court was examining the alleged delay in deciding a petition by Janata Party president Subramanian Swamy,who had sought sanction from the PM to prosecute former telecom minister A Raja in the 2G spectrum scam.
Unfortunately for him,however,the effort fell flat with the Bench comprising Justices G S Singhvi and A K Ganguly insisting on an affidavit on the PMs behalf to explain why he,as sanctioning authority,delayed his response to the petition.It did not agree with Subramaniam that the affidavit was not needed and that oral submissions would do.
The SG backed his argument by pointing to the Manmohan Singhs known qualities honesty and integrity stressing these had won him public respect.
I must make it very clear.There is utmost transparency in dealing with the petition and subsequent communications.There is no need for an affidavit.The confidence,with which I had told the court on Tuesday that everything has been dealt with in a very transparent manner,has been vindicated, the law officer said.
The lines,however,did not work with the Bench which maintained,It will be appropriate that you put in an affidavit.
The SG,however,pressed on.It is all a debate to find the truth and the court is entitled to ask questions.This is the hallmark of our judicial system.And it has been a great privilege to be the Solicitor General of this government.I am proud to enjoy complete confidence of the Prime Minister who has set high standards of probity and honesty.For me,it is a privilege to represent the PM, he said.
The Bench abruptly stopped the SG from going further by saying the senior law officer need not do so as the petitioner had already given a certificate to him (the PM) in this regard.Swamy had on Wednesday said he did not want the PM to resign over the issue as it would be simply playing into the hands of the alleged beneficiaries of the 2G spectrum scam who wanted the PM to go.

Guru · Guru

Raja helped Swan,Unitech twice over

Redrafted First-Come First-Serve Policy To Enable Them Jump Spectrum Queue

Shalini Singh | TNN

New Delhi: The CAG report on the 2G spectrum scam has thrown up fresh evidence of how former telecom minister A Raja used his office to manipulate the definition of firstcome,first-served (FCFS) to give Swan and Unitech a greater advantage over even the carefully handpicked new licencees.
Raja pulled off this colossal scam by insisting that he followed policy and procedure established since 2003 to give away licenses on a FCFS basis,when in fact,he did not.
Violating the established FCFS policy is just one of the many violations that helped perpetrate the Rs 1.76 lakh crore scam but CAGs report shows that this in particular,is directly attributed to Raja himself.On page 63 of its report,the CAG has attached a copy of a DoT press release on its use of the FCFS policy for award of new licences showing that Raja made changes in the definition of FCFS in his own handwriting.The FCFS system followed since 2003 gave priority for spectrum allocation based on date of application.According to the CAG,MOCIT (Raja) personally without any sound and valid reason took away the sanctity of date of application and the date of compliance of LOI conditions became the date of priority,which is not accepted principal of FCFS being followed by DoT till then.It was for the first time in the history of DoT that the date of compliance of LOI was considered a criterion for the issue of UASL licenses.
Raja used press conferences and press releases to cleverly hide this modification and continues to state,I am following policy established by my predecessors since 2003.
The CAG shows how this clever alteration was used to switch companies in the queue,bringing those like Swan and Unitech who had applied much later,right up ahead over Spice and Idea in the priority for spectrum allocation.Essentially,the queue of applicants was illegally formed.Unsurprisingly,this created the most impact in the Delhi circle where spectrum demand far exceeds supply.In the case of Swan,this change of definition of FCFS allowed Swan to get spectrum as early as 28 August 2008 despite submitting its application just 6 months earlier on 2 March 2007.No other applicant has been awarded spectrum for Delhi,not even Spice,which had submitted its application in August 2006 eight months ahead of Swan.
This is because Raja knew that there was spectrum for only one operator in Delhi.
Similarly,for Maharashtra,Spice (date of application 31 August 2006) had to wait 2 years for spectrum till May 2009,while Unitech and Datacom (Videocon) who applied a year after Spice in September 2007,got spectrum within a year and eight months ahead of Spice,in September 2008.Idea was awarded spectrum after more than two years,in May 2009,despite an application of June 2006.Unitech became the key beneficiary,jumping ahead of the queue,to receive spectrum in September 2008 or eight months before Idea,despite having applied 14 months after Idea.It is likely the victims kept quiet as they all hoped to eventually gain from the allotment of valuable spectrum in 2008 at 2001 prices.Rajas careful manipulation of FCFS helped both Swan and Unitech make a killing within 9 months by selling 45% and 60% of their equity stake to Etisalat and Telenor respectively at 6-7 times their cost without a single customer or a rupee in revenues.Clearly,Raja neither followed the FCFS policy that existed since 2003 nor,according to CAG,did he implement TRAI recommendations of 2007.

Guru · Guru

Rajas spectrum pie was a fudge cake

13 Companies Handed In False Papers For Bid

TIMES NEWS NETWORK

New Delhi: It looks like a story that kept repeating but the communications department did not get a whiff of it,and chose not to consult other government agencies to check possible wrongdoing.
An analysis of applications for the unified access service by the CAG has shown that most players ranging from Unitech to Swan Telecom,Loop,Videocon and S-Tel were ineligible if due diligence was done.In all,85 out of the 122 new licences issued to 13 companies in 2008 were granted to entities that did not comply with the prescribed conditions,CAG said in its report tabled in Parliament on Tuesday.These players resorted to misrepresenting facts and submitting false certificates from company secretaries to meet norms related to articles of association,authorized share capital and paid-up capital.
Thirteen companies submitted false and fictitious claims of higher paid-up capital to be treated as eligible for licences.The guidelines prescribed a minimum equity base of Rs 3-10 crore,depending on the service area a company applied for.In addition,the Companies Act has prescribed norms for increasing the authorized share capital.It is only after the authorized share capital is increased and registered with the registrar of companies that the procedure of increase in the equity base can be undertaken.
But in several cases,CAGs investigations have shown that only a resolution had been passed by the company,and that too after the application seeking telecom licences had been filed.Similarly,13 applicants did not have the requisite authorized share capital on the date of submission of their applications.Of these,the Unitech group,which had submitted eight applications,had incorporated companies in August-September 2007 with an authorized share capital of Rs 5 lakh.It was not until early October that the registrar of companies issued a certificate for an increase,while the application with supporting certificates had been submitted on September 24.
The story was much the same with Allianz Infratech,which has now merged with Etisalat DB,S-Tel,Shipping Stop Dot Com (now Loop Telecom) and Datacom Solutions (Videocon Telecommunications).There are also instances of misrepresentation of facts by nine real estate companies.
Unitech had submitted their applications for grant of UAS licences for 20 service areas on September 24,2007 with memorandum and articles of association indicating that the main object clause was telecom sector.But examination of records by auditors has shown that the certification of registration of the six-newly incorporated group companies was on September 20,while the alteration was certified by RoC in May 2008.As a result thereof,the MoA of these firms did not permit them to operate in the telecom sector on the date of application, the CAG report said.The submission of the altered MoA/AoA of the companies without full disclosure of the factual position of the alteration of the main object clause in the MoA/AoA and their conditional registration by RoC was fraudulent act of these companies with the malafide intentions of obtaining the UAS licences for 20 service areas by misleading DoT.

How Companies Violated Eligibility Norms

Swan Telecom

Company was ineligible to get a licence on several counts It is seen as a front company for Reliance Telecom Reliance Telecoms equity in Swan was Rs 1,002.79 crore against Tiger Traderss 98.22 cr In terms of shareholding,Reliance held a 10.71% stake in Swan at the time of application for a UAS licence,with Tiger holding the remaining 89.29%.Rules do not allow an entity to hold over 10% stake in two ventures operating in the same circle Reliance Telecom was opertaing in the same circle areas for which Swan had sought licences,and this was not in conformity with the guidelines It suppressed non-registration of alteration in memorandum and articles of association regarding an increase in the share capital Submitted false certificate from company secretary regarding paid-up capital

Unitech group

Six group companies,which now offer services under the Uninor brand,were ineligible to get unified access licences The articles of association were only altered in May 2008,while the date of application was Sept 24,2007.The companies suppressed this fact Had lower than the prescribed authorized capital,submitted false certificate from company secretary regarding authorized capital

Loop Telecom

Shipping Stop Dot Com (SSDC),Loops earlier name,was ineligible for grant of licence on the day it submitted its application When SSDC submitted an application for UAS licences on September 3,2007,it did not disclose that the registration of articles of association had not taken place A u t h o r i ze d share capital was Rs 5 lakh against the prescribed norm of Rs 8 crore Submitted false certificate from company secretary regarding authorized capital

S Tel

Suppressed the non-registration of alteration in the memorandum and articles of association regarding increase in authorized capital Had authorized capital of Rs10 lakh against prescribed level of Rs18 cr Submitted false certificate from company secretary

Videocon Telecommunications

Datacom Solutions,which originally applied for the licence,suppressed the non-registration of the resolution effecting alternation in the memorandum of association,effecting increase in the authorized capital The authorized capital was Rs 1 lakh against the requirement of Rs 138 crore Increase in authorized capital was done through a resolution the day before application was submitted The company submitted false certificate from company secretary

Guru · Guru

DoTs response failed to convince auditor

New Delhi: When the breach of the guidelines was pointed to DoT,it responded to CAG by saying that Reliances shareholding was 9.81%,as only capital is considered as the holding.But this has obviously failed to convince CAG which maintained that Swan had violated the guidelines and was ineligible for a licence.
Swan had used Reliance Telecoms net worth of Rs 314.7 crore to meet the prescribed net worth norms since Tigers Traders,the majority shareholder,had a networth of only Rs 1 lakh.The Swan link is not the end of the story for Reliance.
To start with,Reliance Communications,Shyam Telelink and HFCL Infotel received dual technology licences,allowing them to also use GSM technology,on October 18,2007 a day before the department actually issued a press release announcing its decision to accept Trais recommendations.Its a different matter that DoT decided on the grant of dual technology licences without consulting the Telecom Commission,the apex policy-making entity in the communications and information technology ministry,which was headed by A Raja till last week.The haste with which the communications ministry was moving can be guaged from the fact that the regulator submitted its recommendations a day earlier,on October 17.
Reliance Communications,which is now the third largest telecom service provider in the country,seemed to be matching the governments speed.It acquired 2G spectrum on the same day as the government issued the press release October 19 by depositing the entry fee of Rs 1,645 crore through a sister concern,Reliance Infocomm.
Acceptance of bank drafts for Rs 1,645 crore by the orders of Reliance Infocomm Ltd (third party) on behalf of Reliance Communications Ltd was also not in order and shows the hurry through which entry fee was deposited, the CAG report said.Moving at a fast pace helped Reliance secure spectrum across 20 service areas ahead of competition,including HFCL Infotel and Shyam.

Rajya Sabha member Kanimozhi arrives at Parliament during the ongoing winter session in New Delhi on Tuesday

Guru · Guru

How Raja defied PM,law & finance ministries

Shalini Singh | TNN

New Delhi: The Comptroller and Auditor General (CAG) has meticulously documented how former telecom minister A Raja circumvented norms at every level and obdurately avoided scrutiny in awarding 2G licences in January 2008 at 2001 rates,which resulted in a loss of Rs 1.76 lakh crore to the exchequer.
Unlike the usual scams,there is nothing secretive about Rajas spectrum scam.He carried out the dubious 2G licence awards in full public view,defying the PM,senior Cabinet colleagues,bureaucrats,and statutory agencies.
There was serious opposition to Rajas spectrum allocation plans from the Prime Minister and they exchanged three letters on November 2,2007.
The PM recommended auctions or benchmarking to determine entry fee seeking an assurance that no action would be taken till he was informed.Raja told the PM he would implement existing policy pleading acute shortage of spectrum,but went on to give licences on a firstcome-first-served (FCFS) basis.
Earlier,Raja,owing to a lack of agreement within DoT,sought legal opinion for allocation of licences and 2G spectrum.
According to the CAG,the law minister himself recommended, In view of the importance of the case and the various options indicated in the statement of the case,it is necessary that the whole matter is considered by an EGoM,and in the process,legal opinion of the attorney general can be obtained. However,Raja told the PM that the law ministers views were totally out of context.
The third attempt to stop Raja was by the finance ministry.The then finance secretary (current RBI governor) D Subbarao,expressed shock over the fact that the DoT had decided to give away licences/2G spectrum at roughly Rs 1,600 crore at 2001 prices.He specifically asked why benchmarking to 2008 prices had not been done and directed the DoT to stop any allocation of licences /spectrum.Raja ignored this.
Raja then sought to create an impression that a legal opinion from the law ministry supported his FCFS policy and the arbitrary cutoff date it is now known that no such legal opinion existed.In fact,this has been further confirmed in the DoTs affidavit in the SC in the current PIL.
Finally,the Trai points out that Raja was cherry-picking from its recommendations and pretending to implement them when in fact,four of the five recommendations were being modified or misrepresented without following the legal process of referring it back to the regulator.

Guru · Guru

CONTINUES `BRAHMIN BASHING', HITS OUT AT JAYA Karuna says DMK ready for JPC 2G scam probe

Guru · Guru

RE: SPECTRUM 2G -SONIA-RAJA- WHO ARE BENEFECIARIES

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