The Comptroller and Auditor General (CAG) has rejected allegations that it had discouraged lead auditor R P Singh in his work on the 2G spectrum report and justified the quantum of presumptive loss of Rs 1.76 lakh crore as based on certain market indicators of spectrum value.

Against the backdrop of reports that Singh, the then DG, Audit (Post and Telecommunications) had computed lower figures of loss and that his figure of Rs 2,645 crore was overruled, the CAG office sent a detailed reply to Parliament's Public Accounts Committee (PAC), looking into the issue.

On the suggestion that Rai had discouraged Singh from seeking comments from DoT which he wanted to include in the final report, the CAG note said there was "no question" of preventing the DG, Audit from taking such a step.

"There is no question of CAG wanting to prevent DG (P and T) from obtaining comments from DoT. It is part of audit procedure to obtain response from the department and consider the same before finalising the report," it said.

The CAG said the draft report was issued to the DoT on July 19 by Singh and their response was received on July 27 and August 31, 2010.

On the reason behind the government auditor choosing to calculate presumptive loss at Rs 1.76 lakh crore based on 3G auction prices, the CAG said audit tries to work out loss in all such cases where documentary evidences suggest a possible loss or wastage.