Telecom scam in NDA tenure; CBI books officials, 3 mobile cos

The Central Bureau of Investigation has registered a case against three private cellular companies and former officials of the telecom department for alleged irregularities in the grant of additional 2G Spectrum and causing a loss of Rs 508 crore during the period 2001-2007.

Those booked under U/s 120-B of the Indian Penal Code, Section 13(2) r/w 13(1)(d) of Prevention of Corruption Act, 1988 are the then chairman (telecom commission ) and secretary (telecom), department of telecommunications, the then DDG (VAS)/DoT, three private cellular companies based at New Delhi and Mumbai, and others. Pramod Mahajan, the then minister for telecom and communication, has been excluded since he expired.

It was alleged that the then secretary (telecom) and the then DDG(VAS), Department of Telecom, entered into a criminal conspiracy with the three beneficiary private companies, based at Delhi and Mumbai, and abused their official positions as public servants.

The public servants, with approval of the then Minister of Telecom (Communications &IT) (since expired), took an alleged hurried decision on January 31, 2002 to allocate additional spectrum beyond 6.2 MHz in violation of the report of a technical committee.

The accused persons also decided to allocate such additional spectrum beyond 6.2 MHz by charging spectrum fee of an incremental 1 per cent AGR (Adjusted Gross Revenue) only for allotting additional spectrum from 6.2 MHz up to 10 MHz instead of charging incremental 1 per cent AGR on allotment of spectrum beyond 6.2 MHz & charging incremental 2 per cent AGR on allotment of spectrum beyond 8

MHz, as applicable in normal prudence.

It was further alleged that the accused persons showed undue favour and caused undue cumulative advantage of approximately Rs 508.22 crore to beneficiary companies, including the three aforesaid accused companies, since allocation of such additional spectrum till such decision was reversed by DOT in 2008, and corresponding loss to the government exchequer.

During monitoring of the 2G Spectrum scam case, the Supreme Court vide order dated December 16, 2010, directed the CBI to investigate the irregularities committed in the grant of licenses from 2001 to 2007 with particular emphasis on the loss caused to the public exchequer and corresponding gain to the licensees/service providers. Accordingly, in compliance to the said order, a preliminary enquiry was registered by CBI in January 2011.

Searches are being conducted on Saturday at the premises of the accused persons and companies at five locations (Four in NCR area and One in Mumbai).

Further investigation is in progress in the case.