72 of 122 new 2G licences issued to ineligible telcos: CAG

Datacom, STel, Unitech, Allianz did not meet eligibility criteria

PTI | October 13, 2010



In a startling revelation, the Comptroller and Auditor General (CAG) has said that 72 out of 122 new 2G spectrum licences issued by Telecom Minister A Raja in January, 2008, were awarded to companies that did not meet the eligibility criteria.

According to the government auditor, Datacom Solution, STel, the Unitech Group of companies and Allianz Infratech, among others, were issued licences in 2008 even though they did not meet the eligibility criteria prescribed by the DoT at the time of application.

This, sources said, may prompt the Telecom Ministry to issue showcause notices to new operators, including STel, Unitech Wireless and Datacom.

The DoT has asked for access to the documents available with the auditor for further investigation into the case and to issue a showcause notice for further action, including termination of the licences awarded to the ineligible telcos, they added.

If the DoT decides to terminate the licences, it would result in encashment of guarantees worth Rs 2,625 crore, including financial bank guarantees worth Rs 1,875 crore and performance bank guarantees worth Rs 750 crore.

"As per DoT's own stipulation, none of these companies were eligible to apply for the grant of unified access service (UAS) licences on the date that they submitted their applications in DoT," an internal CAG note said.

"... DoT chose not to abide by its own guidelines and issued 122 licences without detailed verification of the documents submitted by the applicants," it added.

The audit body said the applications should have been rejected in the first place.

According to sources, the DoT is yet to respond to the CAG's latest report, which also observed that the Telecom Ministry did not consider the Law and Finance Ministry's views on allotment of 2G spectrum.

 

Comments

 

Other News

India reaffirms commitment to climate multilateralism

India has reaffirmed its commitment to climate multilateralism and the principles of Equity and Common But Differentiated Responsibilities and Respective Capabilities (CBDR-RC), calling for a fair, equitable and ambitious outcome at the 31st Conference of the Parties (COP31) to the United Nations Framewo

How the mind can help the body heal itself

Why do some people recover from illness against all odds? Can our beliefs, emotions and consciousness influence the body’s ability to heal? Drawing on over three decades of experience in medicine, research and medical innovation, internationally trained ophthalmologist and author Dr Dinesh Verma ex

1,364 anti-cancer formulations to cost less from today

The National Pharmaceutical Pricing Authority (NPPA), under the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, has capped trade margins on the Maximum Retail Price (MRP) of 137 anti-cancer drugs. This was based on the recommendations of an Expert Committee constitute

Who checks the books?

I read about the news about the Coimbatore library over coffee this morning. On the face of it, the headline was about a political ‘war’ between the DMK and TVK. But what stayed with me was something much more important than the blame game behind what had transpired. A writer walking through

Development paradox: Falling poverty miracle and an inequality problem

India’s reduction in poverty over the past decade is a development achievement of considerable significance. The World Bank’s April 2026 ‘India Development Update’ estimates that the share of Indians living below the international extreme-poverty line of $3.00 per person per day i

In Arunachal, a river we call mother

In Arunachal Pradesh, the Siang is not just a river. For many of us, especially the Adi people, it is part of our family. Our grandparents fished in it. Children learned to swim in it. Our farms drink from it. When someone says a huge dam will be built on it, we do not hear the word "project".

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter