'Billions lost' in India sell-off

[DesiGuy]

India's former telecommunications minister Andimuthu Raja undersold mobile phone licences worth billions of dollars, federal auditors say.

Their report to parliament says rules were flouted in the 2008 sale of second-generation (2G) spectrum.

Licences in the lucrative market had been sold at "unbelievably low prices" - the loss to the government could be as high as $39bn, the report said.

Mr Raja resigned over the weekend, denying any wrongdoing.

The former communications and information technology minister said he wanted "to avoid embarrassment to the government" and allow parliament - which has been in uproar - to function normally.

He is accused of issuing the licences on a "first-come, first-served" basis instead of auctioning them. An auction of 3G bandwidth in May ended up reaping $15bn, twice the sum expected.

Mr Raja was quoted by the Indian media on Tuesday as saying that the government's position on the matter had been filed in an affidavit before the Supreme Court - and that he could not comment any further as the case was sub judice.

Ineligible companies

There are about half a billion mobile phone subscribers in India, the world's fastest growing mobile market. The 96-page Comptroller and Auditor General (CAG) report said that the sale of the licences was undertaken "in an arbitrary, unfair and inequitable manner" by Mr Raja's department, which it said had favoured a select group of companies.

It is accused of not only ignoring the advice of Prime Minister Manmohan Singh on the sale - but also the advice of the ministries of finance, law and justice.

The CAG said the loss to the government could reach $39bn, but stressed that any figure was speculative because it was based on the sector's future growth.

It said that Mr Raja's ministry "brushed aside" rules while handing out the licences and that some operators did not qualify to bid for the contracts.

"We have worked out a presumptive loss. There is a loss that cannot be denied," deputy CAG Rekha Gupta told a news conference after the watchdog lodged its report with parliament.

She said that 85 of the 122 licences issued in 2008 were found to have been won by ineligible companies.

Correspondents say that the row is one of India's biggest corruption scandals in the Congress-led government's six years in power.

They say that while it has damaged the ruling party's image, it is unlikely to threaten the government's survival.

BBC News - India mobile licence sale lost billions, auditors say

 

[MYSTIC]

that a lot of money. Think of what could be done with that kind of money.

 

[Ganguly]

Raja should be hanged, if proven guilty.

 

[Markus]

Raja should be hanged, if proven guilty.

lolzz, do you really think such a thing is possible in India.

If we are going to take so many years in hanging Kasab the terrorist, then Raja was still a minister.

 

[SpArK]

Raja should be hanged, if proven guilty.

We dont have rules to hang corrupted people.. not yet.

 

[BTG]

This scandal should pave the way for having tougher laws and more strict implementation of anti-corruption measures in our country... I have a VERY hard line view on corruption... Any government official (Minister or a petty clerk, there should be no differentiation) found guilty of corruption should be summarily executed and their assets and their family's as well should be seized and used for public projects...

With the amount of money lost to the exchequer, we could have completed so many badly needed infrastructure projects...

 

[Bang Galore]

that a lot of money. Think of what could be done with that kind of money.

That number is more notional than anything else. It is calculated using the bids for the 3G auctions earlier this year & using them to arrive at the figure of $36-37 Billion . That would probably have not been the amount even if the licenses had been auctioned off. However, no matter what the actual amount(this $37 billion is the equal of the defence budget), that Raja caused this country great loss cannot be disputed. I only wish he had been stopped then by the PM instead of waiting till now.

 

[paritosh]

India's former telecommunications minister Andimuthu Raja undersold mobile phone licences worth billions of dollars, federal auditors say.

Their report to parliament says rules were flouted in the 2008 sale of second-generation (2G) spectrum.

Licences in the lucrative market had been sold at "unbelievably low prices" - the loss to the government could be as high as $39bn, the report said.

Mr Raja resigned over the weekend, denying any wrongdoing.

The former communications and information technology minister said he wanted "to avoid embarrassment to the government" and allow parliament - which has been in uproar - to function normally.

He is accused of issuing the licences on a "first-come, first-served" basis instead of auctioning them. An auction of 3G bandwidth in May ended up reaping $15bn, twice the sum expected.

Mr Raja was quoted by the Indian media on Tuesday as saying that the government's position on the matter had been filed in an affidavit before the Supreme Court - and that he could not comment any further as the case was sub judice.

Ineligible companies

There are about half a billion mobile phone subscribers in India, the world's fastest growing mobile market. The 96-page Comptroller and Auditor General (CAG) report said that the sale of the licences was undertaken "in an arbitrary, unfair and inequitable manner" by Mr Raja's department, which it said had favoured a select group of companies.

It is accused of not only ignoring the advice of Prime Minister Manmohan Singh on the sale - but also the advice of the ministries of finance, law and justice.

The CAG said the loss to the government could reach $39bn, but stressed that any figure was speculative because it was based on the sector's future growth.

It said that Mr Raja's ministry "brushed aside" rules while handing out the licences and that some operators did not qualify to bid for the contracts.

"We have worked out a presumptive loss. There is a loss that cannot be denied," deputy CAG Rekha Gupta told a news conference after the watchdog lodged its report with parliament.

She said that 85 of the 122 licences issued in 2008 were found to have been won by ineligible companies.

Correspondents say that the row is one of India's biggest corruption scandals in the Congress-led government's six years in power.

They say that while it has damaged the ruling party's image, it is unlikely to threaten the government's survival.

BBC News - India mobile licence sale lost billions, auditors say

things like this make me regret voting for congress...so many scams!
BJP had it's own scams..but too far and few...
if only BJP becomes truly secular! or congress less scam prone!!
in netaon ko koi khauff nahin hain...we need to hang or lynch a couple of them
there has to be a price to pay...

 

[Markus]

things like this make me regret voting for congress...so many scams!
BJP had it's own scams..but too far and few...
if only BJP becomes truly secular! or congress less scam prone!!
in netaon ko koi khuff nahin hain...we need to hang or lynch a couple of them
there has to be a price to pay...

Well, its not COngress directly, this scam can be attributed to DMK but again Congress cant do much since its handicapped and needs to save its government if DMK pulls out in the advent of tough action against Raja.

 

[StingRoy]

Put them in jail without bail... these people are playing with thousands of crores like chump change while common man and people on the street work their a$$es off to maintain the GDP of the country. Hope all the dealings are tracked and guilty asked to pay back their profits to the state exchequer.

 

[StingRoy]

Well, its not COngress directly, this scam can be attributed to DMK but again Congress cant do much since its handicapped and needs to save its government if DMK pulls out in the advent of tough action against Raja.

Thats right Markus... the quota system for ministries should be gotten rid off in the coalition govts. That is the root cause of this failure of the govt.

 

[S3xy B0y]

Such ministers should be prosecuted to the most harsh level.

 

[Bang Galore]

Thats right Markus... the quota system for ministries should be gotten rid off in the coalition govts. That is the root cause of this failure of the govt.

Easier said than done. Its like trying to get the permanent countries in the UNSC to give up their Veto & leave, Will never happen. What we need is to put the fear of the law into ministers. The PM is not going to want another rap on his knuckles like he just got from the Supreme Court because of the likes of Raja. The next time, he will either put a stop to it or resign. That is our best hope.

I never thought I would say this because I perceived him to be a slimy character; Dr.Subramaniam Swamy deserves this Nation's thanks for his efforts.

The 3G licenses were awarded correctly through auction because the PM had wisened up to Mr.Raja. The fact that Pranab Mukherjee was looking over his shoulder & with Sachin Pilot in his ministry( as a Congress spy) meant that Mr.Raja could do nothing much with those auctions.

 

[smartindian]

norms where broken, date of application submition was preponed, so complete procedure is illegal, 2 high court bench,1 supreme court bench have termed it as illegal, so it matter of time before complete process is reopened spectrum will be occasion , company who got the spectrum illegally will loss lot of money this will teach them a lesson

 

[Basha_Trichy]

if anyone interested in C.A.G.s full report,pls visit

Audit Reports: CAG of India .