Category Archives: 2G Scam Corruption

Govt. fully responsible for the sluggish 2G Auction

17 Saturday Nov 2012

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Central ministers like P.Chidambaram, Kapil Sibal and Manish Tiwari have once again criticised the CAG for his report of loss of Rs. 1.76 lakh crore for the government in the 2G scam. Now that the government has got only Rs. 9,407 crore, far less than the estimated Rs. 40,000 crore in the present auction, the opportunity is used by the Ministers to criticise CAG instead of a soul-searching why the auction amount is reduced.

The fact is that the entire spectrum available has not been put for auction. Secondly, there were no bidders for auction in some circles. Third and most important is that, it is clear that the private telecom companies have bid only for a few circles with an understanding for cartelisation. They fully believe that sharing will be allowed and they can give service without bidding for all circles. They had already provided service in the same way in circles, where they did not have 3G licence. The fourth is the present the  economic recession.

In each and every point mentioned above, the government and its wrong policies are fully responsible.  C AG has done his job correctly and he cannot be blamed for the wrong policies of the government. Ministers should apologise for such bad remarks.

Govt. preparing for another 2G Auction

16 Friday Nov 2012

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The government plans to put on auction the circles that went without bids in the just concluded sale of 2G mobile phone spectrum, by March 31, telecom minister Kapil Sibal said on Friday. The “intent” is to have the auction of spectrum in four circles, including Delhi and Mumbai, before the end of the fiscal, Sibal told a news conference. Blaming sensationalism for collapse of the country’s telecom growth story, Sibal said that India is no longer a ‘story we can share with the world’. Stating that the government was limited in its policy prescriptions, Sibal said that policymaking is best left to the government, however its wrong implementation can be open to judicial review. “Telecom is a proud growth story but something happened in 2007-08 which started a trend, emasculating the hand that laid the golden egg,” Sibal said. Sibal is of the opinion that the dynamics of market change from time to time. “Revenue cannot be the sole criterion of policy,” he said. Had the government stuck to TRAI recommendations on the 2G spectrum auction, the result would have been worse, he added. Finance minister P Chidambaram said the government “was not celebrating” the flopping of the auction and will continue to move forward. An Empowered Group of Ministers (EGoM) “will be meeting soon” to decide on the next course of action, he said. The auction, which lasted just two days, got total bids worth Rs 9,407.64 crore, just one-third of the minimum Rs 28,000 crore the government was expecting. The auction was a far cry from the 35-day bidding for the 3G spectrum in 2010 that got Rs 67,719 crore. Sibal said besides Rs 9,407.64 crore from the auction, the government will also get Rs 7,936 crore by way of one-time fee to be levied on existing telecom operators holding spectrum more than a prescribed limit. “There will be substantial net gain,” Chidambaram said.

 

2G Spectrum Auction a squib – Report by Hindu

14 Wednesday Nov 2012

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The much talked about 2G mobile phone spectrum auction ended in a damp squib today with half of the airwaves on offer remaining unsold and government getting just about one—third of the targeted revenue.

According to preliminary estimates, the government received bids worth “much—less” than Rs. 10,000 crore in an auction that ended in two days, a far cry from the 35—day bidding for the 3G spectrum in 2010 that got Rs. 67,719 crore.

The government was targeting Rs. 28,000 crore from the sale of 2G spectrum in the GSM band.

Videocon and Idea won spectrum in 7 circles while Telenor got spectrum in 6 circles. Airtel and Vodafone won spectrum in one circle each, industry sources said.

No comment was available from government officials.

None of the five companies in fray bid for a pan-India spectrum for which the reserve price was set at Rs. 14,000 crore for 5 Mhz of airwaves.

The scant interest in the 2G auction was attributed to high base price.

The government had put on auction a substantial part of the spectrum that was freed from Supreme Court in February this year cancelling 122 mobile permits issued by the then Telecom Minister A Raja to nine telecom players in 2008.

The Comptroller and Auditor General of India (CAG) had in 2010 had said that the decision to give away spectrum at rates fixed in 2001 could have resulted in a presumptive loss of Rs 1.76 lakh crore to the exchequer taking the price garnered in the 3G auction as the benchmark.

The government thereafter fixed the base rate for 2G auction at almost equivalent to the third—generation (3G) auction price.

Further, as the government has promised to refund the license fee paid in 2008, the net gain to the exchequer may be almost nil.

The tepid response to the auction may mean that the government will find it difficult to meet the revised fiscal deficit target of 5.3 per cent of GDP.

Sources said metro cities of Delhi and Mumbai, which accounted for 40 per cent of the base price of Rs. 14,000 crore for 5 MHz of 2G spectrum, drew no bids at all.

Bids in most of the circles were around the base price with the exception of Uttar Pradesh East and West besides Bihar. Infact, the auction got extended into the second day only on back of interest in Bihar circle.

 

Auction for Spectrum starts on 12th November 2012

11 Sunday Nov 2012

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New Delhi, Nov 11 : The government will begin tomorrow the auction for telecom spectrum through which it is hoping to meet Rs 40,000 crore revenue target.     The auction for the airwaves or frequencies freed from the cancellation of 122 telecom licenses, belonging to mainly eight companies, by the Supreme Court in February, will start at 0900 hours on Monday.     “We have taken quick decision, firm decisions in the telecom sector. The result of which is that we are in process of auction. 12th of November that auction will start,” Telecom Minister Kapil Sibal said at an event on Saturday.     The cancelled permits included Uninor’s 22 licences, Loop Telecom (21), Sistema Shyam (21), Idea Cellular including Spice Communications (13), Videocon (21), Etisalat DB formerly Swan Telecom (15), S-Tel (6) and Tata Teleservices (3 CDMA licences).     Instead of auctioning entire spectrum freed from cancellation of licences, the government is auctioning a maximum of 11 blocks of airwaves frequencies in each circle, barring Delhi and Mumbai where there are only eight blocks, to attract high price for spectrum.     The apex court had allowed the companies, whose permits were cancelled, to get spectrum reallocated for continuing their business if they win rights for the airwaves frequencies in the auction.     The government has fixed starting price for spectrum in the auction at Rs 14,000 crore for 5 Mhz of GSM spectrum on pan-India level which is  around 7 times more than the price of Rs 1,658 crore at which telecom companies were given pan-India permits between 2001 to 2008.     Comptroller and Auditor General has estimated that allotment of permits in 2008 at 2001 prices caused loss to government exchequer to the tune of around Rs 1,76,000 crore.     Out of eight companies whose licences were cancelled, only three companies — Idea Cellular, Videocon and  Telenor (majority stakeholder in Uninor) — have submitted bids for auction of airwaves frequencies.     These companies will have to win at least 5 Mhz of spectrum, divided in blocks of 1.25 Mhz each, to continuetheir services in areas where their licences were cancelled.     Telecom major Airtel and Vodafone are also participating in the auction to buy additional airwaves frequencies. These players can bid for maximum of two blocks in a telecom area.     Since there has been partial impact on permits of Idea Cellular, the company will need to bid for at least four blocks of spectrum, amounting to 5 Mhz of airwaves, in seven telecom circles to continue its operations.     These circles include Tamil Nadu (including Chennai), Kolkata, West Bengal, Orissa, Assam, North East and Jammu and Kashmir service areas. In rest of the circle, Idea Cellular can bid for maximum of 2 blocks only like Airtel and Vodafone.     Industry experts, however, are pessimistic over whether the auction can fetch government the Rs 40,000 crore target it seeks to achieve by selling spectrum.(Courtsey: Ganashakti)

Supreme Court stays all cases in High Court on 2G

10 Saturday Nov 2012

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The Supreme Court on Friday stayed the proceedings on all petitions relating to the 2G spectrum allocation scam, pending before the Delhi High Court, on a CBI plea. “All proceedings pending before the Delhi High Court shall remain stayed,” said a bench of justices G.S. Singhvi and K.S. Radhakrishnan. In its plea, the CBI cited a Supreme Court order of April 11, 2011, which had directed that no court other than the Supreme Court shall entertain any application relating to the case. The court was informed that there were 20 petitions or applications pending before the High Court after the filing of the charge sheets in the 2G case. The bench issued notices and sought replies of various parties within six weeks on the CBI application. The Supreme Court had expressed its displeasure on November 8, 2012 that the Delhi High Court was hearing the matter relating to the 2G spectrum scam despite its order restraining courts below it from adjudicating issues linked to the case. “Despite injunction the Delhi High Court has entertained petition relating to the 2G spectrum case. It is very surprising on the part of the behaviour of the high court,” the court had said. CBI counsel K.K. Venugopal had said the bench can pass an order and stay such proceedings. The bench said an application can be filed by the CBI so that it can give a clear-cut order. “We will hear your application,” it had said. “We will make it clear that no court will entertain any petition (on the 2G case),” the bench had said after senior advocate Mukul Rohatgi, who is representing Essar Group in the case against them, sought clarification on the injunction. Mr. Rohatgi had said the legal right available to the affected parties cannot be taken away and one such right was to approach the High Court. He had said it was for Parliament to make or amend laws and the legal rights available cannot be denied. “We cannot say anything for Parliament to amend laws. Law making is in their domain,” the bench had observed. (Ganashakti )

A meeting of Indian Communists & Workers in UK

25 Monday Jun 2012

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It was an educative and pleasant experience. I got the opportunity to attend the Conference of the Association of Indian Communists Great Britain and the Indian Workers Association on 22-23 June at Leicester (pronounced as Lestor), one of the major cities in UK.  I was invited as a visitor to the august Conference by the Secretary, Com. Harsev Bains, whom I got acquainted when I visited UK last time. The Conference was held at Shaheed Bhagat Singh Memorial House which is the own building of the Leicestor unit of AIC & IWA. The hall was named Com. Surjeet Nagar in honour of Com. Har Kishan Singh Surjeet, the veteran leader of CPI(M).

The Public Rally was addressed by Coms. Sitaram Yechury, PBM, CPI(M) and Robert Griffiths, General Secreetary of Communist Party of Britain. Both of them spoke on the international situation and also on the sustained united struggles against the anti-worker policies of the imperialist rulers.

In addition, Com.Sitaram Yechury spoke in detail about the decisions of the 20th Party Congress of CPI(M) held at Calicut in April 2012 and also the tasks in the coming days. The present political situation in India was also explained.

The Indian Workers Association was formed in the 1960s and is closely connection with the British Trade Union movement. Many of the veteran leaders who started the organisation were present. There were many young comrades, especialliy those who belonged to Kerala and who functioned in the SFI and DYFI. I could interact with them and understand the difficulties being experienced by the students and new entrants to the UK from India.

I travelled to Leicestor in car along with Com. Santokh Singh, a senior leader of AIC and a well known progressive poet and another senior comrade. On 22nd night I stayed with the family of  Com. Rajinder Bains at Derby, about 30 miles from Leicestor. He and his family arranged convenient stay and food.

The two days conference not only gave me the chance to learn about the Indians in the UKbut also enriched me with a lot of friends and comrades. The arrnagements for the conference and all the proceedings were well arranged and fruitful. Com. Harsev Bains was reelcted as Secretary unanimously.

Whether PM should be called before 2G JPC ?

20 Wednesday Jun 2012

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In the meeting of the Join t Parliamentary Committee (JPC), looking in to the 2G Scam, held yesterday, the opposition members in the committee demanded that Prime Minister and top officials of the PMO should be called to give evidence before the committee. This was opposed by the ruling party members and instead demanded that all the earlier telecom ministers, many of whom belong to BJP, be called.

It is very clear that there is so much vital information that is being kept undisclosed by those in power. Whether it is the UPA or the NDA government, both have many skeletons in their cupboards. It is necessary that all these information should be placed before the JPC and the public.

The neo-liberal policy and so-called reforms started by 1990s had given the chance for those in power to misuse the authority given to them and have been indulging in corrupt practices to such an extend that much of the natural resources of the country have been handed over to the MNCs and big business for paltry sums. The series of scams being exposed give a sorry picture of those in power. This loot has to be stopped. For that all information should be collected and remedial action taken. Nobody, however high he/she  may be, can not be tolerated, if he/she is found corrupted and working against  national interests.

2G Scam – What is the Presidential Reference to Supreme Court ?

12 Thursday Apr 2012

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The cancellation of illegal 122 telecom licences by the Supreme Court on 2nd February 2012 has been a slap on the face of the UPA government. The baffled government is trying to come out of it by making the issue more complicated by making a Presidential reference to the Supreme Court seeking clarifications on many issues directly or indirectly connected with the case. It has referred to the SC seeking clarifications on all licences which have been granted without auction since 1993. There are about 102 licences on which the Presidential Reference seeks advice from the apex court. These include 22 licenses of Airtel, 8 of Airtel, 17 of Tatas, 18 of Reliance 12 of Vodafone, 2 of Idea, 1 of loop etc. Incidentally, the licences allotted to BSNL and MTNL is not included in the Reference.

It seems that the Government had made this unusual reference to complicate the issue so that it can save itself from the 2G Scam or at least making it impossible to complete the case and punish the guilty.

SC dismissesGovt. appeal on Vodafone case

20 Tuesday Mar 2012

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The Supreme Court today dismissed the appeal of the government in the Vodafone tax case, meaning that the govt. will have to refund tax money to the company. It was very clear that the govenment has filed the case to show that it is fighting for implementing its tax assessment. But in fact, it was not serious and the petition was only for name-sake.

Immediately after the dismissal  appeal, Minister Khurdhid announced that Rs. 2500 crores will be refunded to Vodafone.  It seems that the government wanted the same. Of course, it wants to support the private companies, especially MNCs.

Government appeals to SC for review of 2G judgment

03 Saturday Mar 2012

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The real motive of the Central government is coming in to open. The government which immediately after the Supreme Court judgment in 2G case stated that it will implement the order, has now filed an appeal to review the order. Although the main point it has raised that the judiciary can not take policy decisions which are in the realms of the government, another point it has raised is that the ‘First Come First Served’ policy  is correct  and had benefitted increase in teledensity all over the country. It is also stated that due to FCFS policy the government also has benefitted.

It comes to this. The government still feels that there has been no loss and the policy was correct. Why the government is taking this stand. There are many reasons, but two are very clear. NOt only A.Raja, but many more top leaders are involved. They had to be saved. Second, if auction process is implemented in allotment of all natural resources like water, land, mine etc. the leverage the government used to get by allotting them to their favourites / or for favours received can not be done.

Any way the government has taken its stand to defend its earlier policy and decisions. Let us wait for the arguments and the judgement.