DoT to get documents back from CBI to respond to CAG queries

Licences issued based on documents certified by company secretaries

PTI | October 15, 2010



The Telecom Ministry will soon approach the CBI, which is probing the alleged irregularities in allocation of new licences and 2G spectrum in 2008, to get back documents to enable it respond to queries raised by government's auditor CAG.

The Comptroller and Auditor General (CAG) had 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.

It had also said that DoT failed to verify the documents submitted by various companies.

The DoT is likely to reply to the queries raised by CAG by October 20, but sources said in the absence of documents, it was difficult for the department to send its reply.

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.

Asked whether DoT was in agreement with the CAG on the eligibility criteria as observed by the apex auditor, sources said DoT would seek a legal opinion on the matter.

They, however, indicated that licences were issued based on documents, verified by the respective company secretaries and other senior officials of new operators, and if any violation of guidelines were found, appropriate action would be taken against the companies.

DoT, however, would issue show cause notices to the new operators only after seeking legal opinion.

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.

Sources said that CBI may not return the documents at this stage when the investigations were in process.

 

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