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The PMO X-File: Documents prove the PM was apprised of the 2G issue but he preferred not to act : North, News - India Today
The PMO X-File: Documents prove the PM was apprised of the 2G issue but he preferred not to act
March 19, 2013
The 2G controversy may well be back to haunt the United Progressive Alliance government and its Prime Minister.
With disgraced telecom minister A. Raja trying desperately to depose before the Joint Parliamentary Committee looking into the matter, their hands may be forced with new revelations emerging to call him. And Raja waiting for an opportunity may well recount what this hitherto unseen note has now put into public domain.
Pulok Chatterjee, secretary in the Prime Minister's Office (PMO), on January 6, 2008, just four days before Raja gave away precious spectrum on a first- come- first- served basis to a handful of operators, wrote to principal secretary TKA Nair and the PM apprising them of the 'spectrum issue'.
All this happened on the back of Raja's note to the PM dated December 26, 2007, (already in public domain) which says, " Discussions with external affairs minister (Pranab Mukherjee, who also headed the GoM on spectrum) and solicitor general (Ghoolam Vahanvati, now attorney general) have further enlightened me to take pre- emptive and proactive decisions on these issues as per the guidelines and rules framed." This note was asked for by Nair after much correspondence between various players of the time.
Chatterjee summarises by saying that his extensive note gives recommendations and suggestions.
While Chatterjee details several things which are well known in the preamble of his note like the fact that "allocation of very limited spectrum to each operator leads to high levels of inefficiency in the use of spectrum, what emerges is damaging note by Mail Today Bureau in New Delhi that he opts for an auction methodology".
"Ideally in a situation where spectrum is scarce, it should be auctioned though uncontrolled auction can lead to inflated bids, unacceptability high prices for the customer and threaten the financial stability of the industry."
He then goes on to suggest that "there are licensed operators who have excess spectrum while at the same time there are many pending applications awaiting allocation of spectrum".
Chatterjee then unveils a new spectrum policy based on new norms: .. Allocation must ultimately be linked to the number of subscribers to ensure optimal use .. Solution must be found within set of contractual rights already created .. Existing operators which were allotted spectrum must be given an opportunity to reach efficient scale .. New operators must be assured of the prospect of sufficient spectrum .. Spectrum must be assigned value, its pricing must not be inflated to make it financially unsustainable .. Licensing and spectrum allocation policy must be fair and transparent to ensure free competition Progressing, Chatterjee reveals his approach which is slightly at variance with his initial comments, as auction becomes new allotments at normal rates: ..
Fix a threshold level of spectrum that each operator must have for efficiency. Existing operators holding spectrum above threshold level may be allowed certain amount of time to raise subscriber levels to reach full utilisation failing which excess spectrum may be withdrawn. New operators may be allotted spectrum only up to the threshold level on payment of normal fees. Balance spectrum may then be auctioned among all those who hold spectrum up to the threshold level Chatterjee at the time of writing all this already discussed the matter with the newly inducted Department of Telecommunications (***) secretary Siddharth Behura, who was ultimately charge- sheeted and jailed along with Raja.
Interestingly, even while all this is going on, a file noting on January 11, a day after Raja has given away spectrum willfully, says, "PM says that *** has issued licences today that may be taken into account and the issues accordingly modified and submitted to him please." Chatterjee's next missive to the PM dated January 15, 2008 , says, "It is true that a certain number of operators have already been issued letters of intent ( LoI)⦠they could be considered for allocation of spectrum up to the threshold level once they fulfil all Loi conditions."
All this is post facto after the deed was done by Raja.
It is here that a curious turn of events takes place.
On January 23, 2008, in yet another damaging file noting, it is said, "PM wants this informally shared with the ***. He does not want a formal communication and wants PMO to be at arm's length please."
Two days later, another noting on the same file adds, "Informally shared with secy ***. We may keep on file."
Chatterjee saw reason in having an auction but in a tempered manner so that operators and subscribers don't bleed to death and their financial sustainability is not hit.
Raja went ahead and did what he intended and the PM, who realised that the horse had bolted, wanted to maintain arm's length knowing fully well (or, at least, his principal secretary knew all along) what was happening.
Over to Raja.
----------------------------------------------------------------------------------------------------
RELATED PLEASE :
Within 2 weeks of the 2G scam, PM wanted
March 19, 2013
Within 2 weeks of the 2G scam, PM wanted arms length from Raja
Shalini Singh
New documents show that the Prime Ministers Office, under instructions from Prime Minister Manmohan Singh to examine ex-Telecom Minister A. Rajas controversial 2G decisions, actively supported Mr. Raja before the scam, only to seek arms length distance from him once the 2G licences were allocated on January 10, 2008 amid intense media scrutiny and Opposition attacks.
Pulok Chatterji, who presented the analysis on file on December 31, 2007, was appointed Secretary in the PMO, two days later on January 2, 2008. A detailed discussion between Mr. Chatterji and the then Principal Secretary, PMO, T.K.A. Nair is recorded on January 6, 2008, on page 1/N5/N which concludes in agreement with Mr. Rajas last letter to the Prime Minister.
Mr. Nair signed off his approval on January 7, 2008, just three days before the 2G scam was perpetrated on January 10, 2008.
The file movement began again after the scam, with a noting on
January 11: PM says that the *** has issued the licences today. That may be taken into account and the issues accordingly modified and submitted to him. Pl.
On January 15, Mr. Chatterji sought permission to resubmit the PMOs agreement on the modified first-come-first-served (FCFS) process, allocation of threshold spectrum on meeting LoI conditions and auctions only beyond threshold levels, to Secretary, ***. It is at this point that the PS to the PM, B.V.R. Subrahmanyam, on January 23, 2008, instructed that: PM wants this informally shared with Department. Does not want formal communication and wants PMO to remain at arms length please.
Within two days, Mr. Chatterji complied with the order. He wrote: Informally shared with ***. We may keep on file.
Though the Prime Minister has attempted to separate himself from Mr. Rajas actions through his statements in Parliament and a TV Editors press conference in February 2011, this fresh evidence establishes that Mr. Raja was not alone in pursuing a line of action that has since landed him in legal trouble.
The documents provide a clue to why, in the face of public anger, media scrutiny and questions by the Opposition in Parliament, the Congress and the UPA-II government threw their entire weight behind Mr. Raja, until the CAG report and Supreme Court observations forced him to resign in November 2010.
They also explain why senior Cabinet Ministers had to take an aggressive public stance on 2G in 2011, to prevent its flames reaching 7 Race Course Road, and finally the reasons for UPA members in the JPC investigating 2G to resist demands for either Dr. Singh or Mr. Raja to be called in as witnesses.
-----------------------------------------------------------------------------------------------------
New papers show PMO analysed and agreed with Raja
March 19, 2013
New papers show PMO analysed and agreed with Rajas actions before 2G scam
Shalini Singh
The Hindu Prime Minister Manmohan Singh with former Telecom Minister A. Raja. File photo: V.V. Krishnan
The Hindu Prime Minister Manmohan Singh with former Telecom Minister A. Raja. File photo: V.V. Krishnan
Will Manmohan distance himself from PMO officials as he did from Raja?
New evidence shows that Prime Minister Manmohan Singh, far from being at arms length from ex-Telecom Minister A. Rajas controversial 2G decisions, had directed officials in the PMO to examine urgently Mr. Rajas letters outlining his intended decisions which eventually led to the 2G scam on January 10, 2008. Investigation now reveals that senior PMO officials had supported several of Mr. Rajas acts on file, well before the 2G scam.
These very same 2G decisions of 2008 were later, in February 2012, declared by the Supreme Court to be wholly arbitrary, capricious and contrary to public interest apart from being violative of the doctrine of equality. Mr. Raja, his senior officers and industrialists were accused by the CBI of entering into a criminal conspiracy to cheat the exchequer of Rs. 1.76 lakh crore of revenue, as per the CAGs estimates.
Examine urgently: PM
A set of hitherto unseen documents emerging from PMO File No 180/31/C/26/OS.ESI, Vol. IV, in the possession of The Hindu, shows that the Prime Minister, after receiving written intimations from Mr. Raja on December 26 about his plans to manipulate the first-come-first-served (FCFS) policy, directed on December 29, 2007 that the letter be examined urgently. Based on the PMs directions, the then Principal Secretary, PMO, T.K.A. Nair and Secretary, PMO, Pulok Chatterji analysed Mr. Rajas letter, discussed the implications and listed suggestions while agreeing in writing with at least four of his actions ahead of the 2G scam.
The new set of documents is at variance with the popular belief that Dr. Singh made weak attempts to caution Mr. Raja against his multiple illegal moves, but eventually failed to restrain him. File notings demonstrate not just agreement with Mr. Rajas written intimations but even a discussion on these specifications, between Mr. Chatterji and the new Secretary ***, Siddharth Behura nearly a week before the 2G scam.
On the Prime Ministers directions, a detailed analysis on 2G was placed on file along with Mr. Rajas six-page letter to the PM and a Top Secret note by the then External Affairs Minister (EAM) and Chairman of the GoM on Spectrum, Pranab Mukherjee, both coincidentally dated December 26, 2007.
Mr. Chatterji, then a senior official in the PMO, on December 31, 2007, wrote on page 1/N of the file, in a Confidential/Internal note: As desired by Pr. Secy., I have gone through the note of the EAM and the letter of Minister C&IT and an earlier note on the telecom issues. All these documents are placed below. I have prepared a comparative chart at F/X that gives various recommendations on each issue. The last col. gives certain suggestions. Pr. Secretary may like to see this.
The PMOs four-page comparative chart, which specifically deals with Issues of new licenses, establishes that the PMO was in agreement with the decisions for which Mr. Raja stands accused in the CBI charge sheet of April 2, 2011, the CAG report of November 16, 2010, and the Supreme Court judgment of February 2, 2012, which cancelled 122 licences.
PMO agreed with Raja
The PMO was in agreement that startup spectrum called threshold in the file be allocated at normal rates. This implies no revision in entry fee, a crime for which the CBI charge sheet accuses Mr. Raja. A related note by Mr. Chatterji, after his discussion with Mr. Nair, goes on to recommend that auctions only be held beyond threshold (startup) level.
This supports Mr. Rajas refusal to revise the entry fee or resort to auctions in his letters to the Prime Minister of November 2 and December 26, 2007, which were written in response to the PMs letter of November 2, 2007.
Thirdly, the file notings endorse Mr. Rajas proposition that the FCFS policy should continue, despite acknowledging on file that over 570 applications were pending, with a caveated admission by Mr. Chatterji on page 3/N Section 14, that, Ideally, in a situation where spectrum is scarce, it should be auctioned.
Finally, the documents not only accept Mr. Rajas manipulation of the FCFS definition which changed the priority from date of application to time of compliance with the Letter of Intent (LoI) payment of fee, etc but document this illegal change in Column 6 of the comparative chart as a 3-stage process, mirroring the 3-stage process outlined in Mr. Rajas last letter to the Prime Minister of December 26, 2007.
The Supreme Court, the CAG and the CBI have held this to be a violation of the then existing FCFS process.
The PMO files do not comment on the illegal advancement of cutoff date though Mr. Raja had specifically informed the Prime Minister about the advancement in his earlier letter D.O. No.20-100/2007-AS.1 of November 2, 2007.
At the time of our going to press, the PMO had not responded to a detailed set of questions emailed by The Hindu.
Read more at: The PMO X-File: Documents prove the PM was apprised of the 2G issue but he preferred not to act : North, News - India Today
The PMO X-File: Documents prove the PM was apprised of the 2G issue but he preferred not to act
March 19, 2013
The 2G controversy may well be back to haunt the United Progressive Alliance government and its Prime Minister.
With disgraced telecom minister A. Raja trying desperately to depose before the Joint Parliamentary Committee looking into the matter, their hands may be forced with new revelations emerging to call him. And Raja waiting for an opportunity may well recount what this hitherto unseen note has now put into public domain.
Pulok Chatterjee, secretary in the Prime Minister's Office (PMO), on January 6, 2008, just four days before Raja gave away precious spectrum on a first- come- first- served basis to a handful of operators, wrote to principal secretary TKA Nair and the PM apprising them of the 'spectrum issue'.
All this happened on the back of Raja's note to the PM dated December 26, 2007, (already in public domain) which says, " Discussions with external affairs minister (Pranab Mukherjee, who also headed the GoM on spectrum) and solicitor general (Ghoolam Vahanvati, now attorney general) have further enlightened me to take pre- emptive and proactive decisions on these issues as per the guidelines and rules framed." This note was asked for by Nair after much correspondence between various players of the time.
Chatterjee summarises by saying that his extensive note gives recommendations and suggestions.
While Chatterjee details several things which are well known in the preamble of his note like the fact that "allocation of very limited spectrum to each operator leads to high levels of inefficiency in the use of spectrum, what emerges is damaging note by Mail Today Bureau in New Delhi that he opts for an auction methodology".
"Ideally in a situation where spectrum is scarce, it should be auctioned though uncontrolled auction can lead to inflated bids, unacceptability high prices for the customer and threaten the financial stability of the industry."
He then goes on to suggest that "there are licensed operators who have excess spectrum while at the same time there are many pending applications awaiting allocation of spectrum".
Chatterjee then unveils a new spectrum policy based on new norms: .. Allocation must ultimately be linked to the number of subscribers to ensure optimal use .. Solution must be found within set of contractual rights already created .. Existing operators which were allotted spectrum must be given an opportunity to reach efficient scale .. New operators must be assured of the prospect of sufficient spectrum .. Spectrum must be assigned value, its pricing must not be inflated to make it financially unsustainable .. Licensing and spectrum allocation policy must be fair and transparent to ensure free competition Progressing, Chatterjee reveals his approach which is slightly at variance with his initial comments, as auction becomes new allotments at normal rates: ..
Fix a threshold level of spectrum that each operator must have for efficiency. Existing operators holding spectrum above threshold level may be allowed certain amount of time to raise subscriber levels to reach full utilisation failing which excess spectrum may be withdrawn. New operators may be allotted spectrum only up to the threshold level on payment of normal fees. Balance spectrum may then be auctioned among all those who hold spectrum up to the threshold level Chatterjee at the time of writing all this already discussed the matter with the newly inducted Department of Telecommunications (***) secretary Siddharth Behura, who was ultimately charge- sheeted and jailed along with Raja.
Interestingly, even while all this is going on, a file noting on January 11, a day after Raja has given away spectrum willfully, says, "PM says that *** has issued licences today that may be taken into account and the issues accordingly modified and submitted to him please." Chatterjee's next missive to the PM dated January 15, 2008 , says, "It is true that a certain number of operators have already been issued letters of intent ( LoI)⦠they could be considered for allocation of spectrum up to the threshold level once they fulfil all Loi conditions."
All this is post facto after the deed was done by Raja.
It is here that a curious turn of events takes place.
On January 23, 2008, in yet another damaging file noting, it is said, "PM wants this informally shared with the ***. He does not want a formal communication and wants PMO to be at arm's length please."
Two days later, another noting on the same file adds, "Informally shared with secy ***. We may keep on file."
Chatterjee saw reason in having an auction but in a tempered manner so that operators and subscribers don't bleed to death and their financial sustainability is not hit.
Raja went ahead and did what he intended and the PM, who realised that the horse had bolted, wanted to maintain arm's length knowing fully well (or, at least, his principal secretary knew all along) what was happening.
Over to Raja.
----------------------------------------------------------------------------------------------------
RELATED PLEASE :
Within 2 weeks of the 2G scam, PM wanted
March 19, 2013
Within 2 weeks of the 2G scam, PM wanted arms length from Raja
Shalini Singh
New documents show that the Prime Ministers Office, under instructions from Prime Minister Manmohan Singh to examine ex-Telecom Minister A. Rajas controversial 2G decisions, actively supported Mr. Raja before the scam, only to seek arms length distance from him once the 2G licences were allocated on January 10, 2008 amid intense media scrutiny and Opposition attacks.
Pulok Chatterji, who presented the analysis on file on December 31, 2007, was appointed Secretary in the PMO, two days later on January 2, 2008. A detailed discussion between Mr. Chatterji and the then Principal Secretary, PMO, T.K.A. Nair is recorded on January 6, 2008, on page 1/N5/N which concludes in agreement with Mr. Rajas last letter to the Prime Minister.
Mr. Nair signed off his approval on January 7, 2008, just three days before the 2G scam was perpetrated on January 10, 2008.
The file movement began again after the scam, with a noting on
January 11: PM says that the *** has issued the licences today. That may be taken into account and the issues accordingly modified and submitted to him. Pl.
On January 15, Mr. Chatterji sought permission to resubmit the PMOs agreement on the modified first-come-first-served (FCFS) process, allocation of threshold spectrum on meeting LoI conditions and auctions only beyond threshold levels, to Secretary, ***. It is at this point that the PS to the PM, B.V.R. Subrahmanyam, on January 23, 2008, instructed that: PM wants this informally shared with Department. Does not want formal communication and wants PMO to remain at arms length please.
Within two days, Mr. Chatterji complied with the order. He wrote: Informally shared with ***. We may keep on file.
Though the Prime Minister has attempted to separate himself from Mr. Rajas actions through his statements in Parliament and a TV Editors press conference in February 2011, this fresh evidence establishes that Mr. Raja was not alone in pursuing a line of action that has since landed him in legal trouble.
The documents provide a clue to why, in the face of public anger, media scrutiny and questions by the Opposition in Parliament, the Congress and the UPA-II government threw their entire weight behind Mr. Raja, until the CAG report and Supreme Court observations forced him to resign in November 2010.
They also explain why senior Cabinet Ministers had to take an aggressive public stance on 2G in 2011, to prevent its flames reaching 7 Race Course Road, and finally the reasons for UPA members in the JPC investigating 2G to resist demands for either Dr. Singh or Mr. Raja to be called in as witnesses.
-----------------------------------------------------------------------------------------------------
New papers show PMO analysed and agreed with Raja
March 19, 2013
New papers show PMO analysed and agreed with Rajas actions before 2G scam
Shalini Singh
The Hindu Prime Minister Manmohan Singh with former Telecom Minister A. Raja. File photo: V.V. Krishnan
The Hindu Prime Minister Manmohan Singh with former Telecom Minister A. Raja. File photo: V.V. Krishnan
Will Manmohan distance himself from PMO officials as he did from Raja?
New evidence shows that Prime Minister Manmohan Singh, far from being at arms length from ex-Telecom Minister A. Rajas controversial 2G decisions, had directed officials in the PMO to examine urgently Mr. Rajas letters outlining his intended decisions which eventually led to the 2G scam on January 10, 2008. Investigation now reveals that senior PMO officials had supported several of Mr. Rajas acts on file, well before the 2G scam.
These very same 2G decisions of 2008 were later, in February 2012, declared by the Supreme Court to be wholly arbitrary, capricious and contrary to public interest apart from being violative of the doctrine of equality. Mr. Raja, his senior officers and industrialists were accused by the CBI of entering into a criminal conspiracy to cheat the exchequer of Rs. 1.76 lakh crore of revenue, as per the CAGs estimates.
Examine urgently: PM
A set of hitherto unseen documents emerging from PMO File No 180/31/C/26/OS.ESI, Vol. IV, in the possession of The Hindu, shows that the Prime Minister, after receiving written intimations from Mr. Raja on December 26 about his plans to manipulate the first-come-first-served (FCFS) policy, directed on December 29, 2007 that the letter be examined urgently. Based on the PMs directions, the then Principal Secretary, PMO, T.K.A. Nair and Secretary, PMO, Pulok Chatterji analysed Mr. Rajas letter, discussed the implications and listed suggestions while agreeing in writing with at least four of his actions ahead of the 2G scam.
The new set of documents is at variance with the popular belief that Dr. Singh made weak attempts to caution Mr. Raja against his multiple illegal moves, but eventually failed to restrain him. File notings demonstrate not just agreement with Mr. Rajas written intimations but even a discussion on these specifications, between Mr. Chatterji and the new Secretary ***, Siddharth Behura nearly a week before the 2G scam.
On the Prime Ministers directions, a detailed analysis on 2G was placed on file along with Mr. Rajas six-page letter to the PM and a Top Secret note by the then External Affairs Minister (EAM) and Chairman of the GoM on Spectrum, Pranab Mukherjee, both coincidentally dated December 26, 2007.
Mr. Chatterji, then a senior official in the PMO, on December 31, 2007, wrote on page 1/N of the file, in a Confidential/Internal note: As desired by Pr. Secy., I have gone through the note of the EAM and the letter of Minister C&IT and an earlier note on the telecom issues. All these documents are placed below. I have prepared a comparative chart at F/X that gives various recommendations on each issue. The last col. gives certain suggestions. Pr. Secretary may like to see this.
The PMOs four-page comparative chart, which specifically deals with Issues of new licenses, establishes that the PMO was in agreement with the decisions for which Mr. Raja stands accused in the CBI charge sheet of April 2, 2011, the CAG report of November 16, 2010, and the Supreme Court judgment of February 2, 2012, which cancelled 122 licences.
PMO agreed with Raja
The PMO was in agreement that startup spectrum called threshold in the file be allocated at normal rates. This implies no revision in entry fee, a crime for which the CBI charge sheet accuses Mr. Raja. A related note by Mr. Chatterji, after his discussion with Mr. Nair, goes on to recommend that auctions only be held beyond threshold (startup) level.
This supports Mr. Rajas refusal to revise the entry fee or resort to auctions in his letters to the Prime Minister of November 2 and December 26, 2007, which were written in response to the PMs letter of November 2, 2007.
Thirdly, the file notings endorse Mr. Rajas proposition that the FCFS policy should continue, despite acknowledging on file that over 570 applications were pending, with a caveated admission by Mr. Chatterji on page 3/N Section 14, that, Ideally, in a situation where spectrum is scarce, it should be auctioned.
Finally, the documents not only accept Mr. Rajas manipulation of the FCFS definition which changed the priority from date of application to time of compliance with the Letter of Intent (LoI) payment of fee, etc but document this illegal change in Column 6 of the comparative chart as a 3-stage process, mirroring the 3-stage process outlined in Mr. Rajas last letter to the Prime Minister of December 26, 2007.
The Supreme Court, the CAG and the CBI have held this to be a violation of the then existing FCFS process.
The PMO files do not comment on the illegal advancement of cutoff date though Mr. Raja had specifically informed the Prime Minister about the advancement in his earlier letter D.O. No.20-100/2007-AS.1 of November 2, 2007.
At the time of our going to press, the PMO had not responded to a detailed set of questions emailed by The Hindu.
Read more at: The PMO X-File: Documents prove the PM was apprised of the 2G issue but he preferred not to act : North, News - India Today
