2G scam: Govt to issue show cause notices to 119 telcos

Mulling cancellation for suppression of facts and missing roll-out obligations

PTI | November 30, 2010



Under attack for alleged Rs 1.76 lakh crore scam in allocation of spectrum, the government today said over half a dozen operators would be asked as to why their licences should not be cancelled for suppression of facts and missing out on roll-out obligations.

The show-cause notices for a total of 119 licences would be based on the list of licencees, as pointed out by the CAG, that were ineligible to get licences due to misinformation furnished by them, and telecom regulator TRAI's recommendation for failing to meet the roll-out obligation.

Announcing the strong government action, new Telecom Minister Kapil Sibal declined to name the licence holders.

However, CAG had listed out licences given to new operators, including Unitech, Videocon, S-Tel, Loop and Swan.

TRAI also pointed lapses in licences held by theses apart from few others while recommending their cancellation.

"... we believe that some of the companies might have suppressed facts, might have got an undue advantage in accessing licences," Sibal told reporters.

Asked about the revenue loss to the exchequer by allotting spectrum at 2001 prices, as pointed out by the CAG, the Minister said, "The CAG has stated this. This is something which the Ministry will decide and we will apply our mind individually to each case."

The government auditor CAG has quantified a revenue loss of up to Rs 1.76 lakh crores for giving licences and spectrum at 2001 price of Rs 1,651 crore for pan-India operations by former telecom minister A Raja in January 2008.

The CAG report, which saw the outster of Raja from the ministry, also have raised an uproar inside and outside Parliament, with the Opposition demanding an investigation by the Joint Parliamentary Committee.

The notices will be issued to 119 licences, of which 81 fall under both categories of ineligibility to get licences and 38 for not meeting roll-out obligations as spelt out in the licences, Sibal said.

Sources said that among the new operators, the companies are Uninor, S Tel, Loop Telecom and Videocon.

The operators would be given 60 days time to respond to the show-cause notices, Sibal said, adding each case would be dealt with separately.

"After studying their response, a decision will be taken on whether these (licences) need to be cancelled or a penalty should be imposed," the minister said.

The ministry will start issuing the notices in next three-four days, senior DoT officials said adding the Minister has cleared the file.

 

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