2g scam and CAG report

As expected A. Raja resigned from his post today under huge pressure from the opposition, media and the public. It all started with a carefully crafted plan of 2g spectrum allocation to the potential applicants.
As per CAG report out of 122 licenses to be allocated 85 were illegal. Even the licenses are allocated fraudulently to the operators who had little expertise in the telecom sector on the basis of fraudulent docs while Most of the companies that got the 2g licenses were suspected to have an illegal understanding with DOT. CAG report clearly states that DOT has created a mess in the 2g spectrum allocation and responsible for the loss to the exchequer to Rs 1, 76,645 crore.
Despite the advice from the prime minister about a fair allocation of spectrum to the able telecom players no heed was taken by A. Raja and his team. CAG gave clean chit to PMO and ministry of finance blaming DOT for the fraud.
Points to be noted from the fraudulent intent
Swan telecom’s name is specifically taken by TV and print media as one of the companies that is greatly favored by DOT as the top contender for 2g allocation. As per rules no company can hold 10% stake in two telecom services but as per CAG report reliance communication had a substantial stake in Swan.
Swan is not the only service provider that got favored by the DOT there were indeed many known names such as the newcomer  Unitech, Loop and Datacom Allianz Infra .
It is case of error vs. intentional fraud. As per DMK and A. Raja it is an error while for us it is an intentional fraud. Fraudulent means were applied in order to give favor to a group of companies who have prior knowledge about the document submission date and time.
Through a press release On January 10, 2008 at 2.47 pm A. Raja gave 45 minutes to the companies to collect their response letters against the necessary legal documents along with bank guarantees. Interesting thing is that most of the company representatives were at DOT with the necessary documents before the press release. According to CAG auditors 13 applicants have demand drafts drawn on the date before the press release.
Applicants and the DOT were aware of the moves but they had no idea that it will come to the limelight. Only time will say about the justice to be done by the law. There is every possibility that these big shots will get away from the law as they have the power of money. As fraud is a crime as per law these rich businessmen and their corrupt allies from the Govt should get punishment.
 Written By Dipti Prasad Padhi

By : | Category : Business and Economy| Date : November 11,2011

Popular Comments

---- E M P T Y ----
Jump Page:1