Tuesday, November 16, 2010

2G scam: Supreme Court questions PM's inaction

New Delhi:  The Supreme Court (SC) has questioned the Prime Minister's alleged inaction in 2G scam. The apex court made the observation on Janata Party Subramaniam Swami's complaints against A Raja.

The Janata Party leader had sought the court's intervention on grounds that his application before the PM seeking his sanction to prosecute A Raja for corruption is pending for the last two years.

The petitioner told the court that there is no need for the PM's nod since Raja has resigned as a minister. There was another plea by petitioner Prashant Bhushan on the CAG report on licences issued to ineligible companies at 2001 prices.

During the last hearing on October 29, the Supreme Court had slammed the CBI for its "slipshod" investigations into the 2G Spectrum allocation issue and even wondered how Raja was continuing in office.
       
The Telecom Ministry had claimed that new licences and 2G Spectrum was distributed as per the existing policy which were followed by all the predecessors of Raja.

CAG report proves charge against Raja, SC told

NEW DELHI: The final report of the Comptroller and Auditor General (CAG) has proved the allegations that Mr A Raja, who quit on Sunday night as telecom minister, granted 2G spectrum licences arbitrarily to favour certain companies were true, senior counsel Prashant Bhushan told the Supreme Court on Monday. 

Mr Bhushan told a bench comprising Justice G S Singhvi and Justice A K Ganguly that Mr Raja advanced the cut-off date retrospectively and illegally to award 2G spectrum only to 122 out of 575 applicants. He said most of those who were awarded licences and 2G spectrum were ineligible. 

Appearing for the petitioner Centre for Public Interest Litigation (CPIL), Mr Bhushan said that the licences were allegedly granted on first-come-first-served (FCFS) basis instead of transparent public auction. 

The court was told that “even the FCFS method was not properly applied as priority was fixed from the date of compliance with the letter of intent (LOI) conditions rather than the date of receipt of applications”. 

Referring to the central government’s affidavit filed last Thursday, the senior counsel told the court all the arguments that have been advanced in the affidavit were advanced by the department of telecommunications (DoT) before the CAG and the same were rejected by the audit authority. 

He said that the director general audit (post and telegraph) too found fault over the manner in which 2G spectrum licences were issued. The senior counsel said that the CAG has annexed the director general audit’s report in its final report. 

Bhushan told the court that 2G spectrum licences in 2008 were granted at the rates of 2001, when the telecom market was in a nascent stage. He told the court that by 2008 the telecom market had become buoyant, there was a huge demand and the prices had increased 10 fold. 

The affidavit filed by the CPIL said that the DoT in its affidavit has not addressed the issue of Raja’s conversations with corporate lobbyists Nira Radia and the role played by her in the award of licences and spectrum. 

The details of the conversations were given by the directorate of income tax (Investigations) to the Central Bureau of Investigation more than a year back, the affidavit said. 

“The entire 2G spectrum scam is a multi-stage, well thought out, deliberate act where a criminal conspiracy was hatched between private companies/persons and officials of DoT in order to circumvent an open, transparent auction process to favour a chosen few,” the petitioner said.

2G Spectrum Scam: 85 companies got licenses by suppressing facts, says CAG

New Delhi:  The report that pushed A Raja through the exit door of the Telecom Ministry has been tabled in the Lok Sabha. Prepared by the government's auditor, the Comptroller and Auditor General (CAG), the document holds Raja responsible on many fronts for violating guidelines, indulging in favouritism and costing the government Rs. 1.76  lakh crores by mishandling the allocation of 2G spectrum in 2008. 
"85 licenses were issued to companies which suppressed facts, disclosed incomplete information and submitted fictitious documents to DoT and thus used fraudulent means of getting licenses and thereby access to spectrum," sad the CAG report. 
Prime Minister Manmohan Singh said CAG reports are taken very seriously and that places greater responsibility on the auditor to ensure that the reports are balanced and fair.  
The CAG, Manmohan Singh said, was an important watchdog and its reports were taken seriously by the media, the Parliament and the government.  He also said he was "aware of concerns regarding the inadequate and delayed response to the reports of the CAG," and added that the Finance Ministry had taken a number of steps to improve matters.

There were loud and angry scenes in Parliament once again today, courtesy the Opposition - the Lok Sabha has been adjourned till Thursday, since tomorrow is a national holiday for Eid.
 
The government is trying its best to get Opposition parties to stop stalling proceedings over the 2G scam. But a lunch meeting with Opposition leaders called by Finance Minister Pranab Mukherjee to try and end the deadlock, has ended without a breakthrough.  
Mukherjee, who also met senior BJP leader LK Advani at the latter's Parliament office earlier, emerged from the lunch meeting to say, "We are for discussion. No solution has been found yet. They want a JPC."
Raja was forced to resign on Sunday night under considerable pressure from the Congress, which has been attacked in Parliament by a united Opposition for corruption within its ranks.  
The resignation was described as a welcome step by the Opposition but it continues to demand a Joint Parliamentary Committee (JPC) to investigate the 2G scam.  The government has said there is no question of agreeing to this. 
 Parliament has not functioned at all this winter session - the Opposition says it won't let the House get to work till a JPC is announced.
What the CAG Report says about Raja

"The Honourable Minister of Communication & IT, for no apparent logical or valid reasons, ignored the advice of Ministry of Law and Ministry of Finance, avoided the deliberations of the Telecom Commission to allocate 2G spectrum, a scarce finite national asset at less than its true value on flexible criteria and procedures adopted to benefit a few operators." The report also says Raja ignored PM's advice. 
 Details are also emerging on how Raja bent the rules for a few corporates who walked away in 2008 with 2G licenses at what experts describe as throwaway prices based, inexplicably, on 2001 rates.
 Several of the companies should have been declared ineligible, says the CAG report.

Swan Telecom and others favoured 
Swan Telecom was among those that won a 2G license in 2008.  The charges in the CAG report are that Swan should not have been considered for a license because Reliance Communications held 10.7% stake in Swan - and according to the rules, a telecom operator cannot own more than 10% stake in another telecom company operating in the same service area.
The application should have been rejected by the Department of Telecom (DoT).
The CAG report says, "It was evident at the time of applying for license that the substantial equity of M/s Reliance Telecom in M/s Swan was 10.7%. Since M/s Reliance Telecom was operating in all the service area for which M/s Swan Telecom had applied for the license, their application was not in conformity with Clause 8 of the guidelines".
The report also says that Reliance Telecommunications and Tata Teleservices were among those who got undue benefits, and that Reliance was allotted spectrum ahead of the others.  According to CAG, Idea and Spice were wrongly denied spectrum on the grounds of a proposed merger.

CAG report not final, says Moily

Law Minister M Veerappa Moily  on Friday said the report of Comptroller and Auditor General (CAG) on 2G spectrum allocation cannot be called an indictment of Telecom Minister A Raja , as claimed by opposition, as it is not final. 

"You cannot call it an indictment. It is not a final report. Technically no one can call it indictment," Moily told PTI here, adding he had not seen any minister resigning following a CAG report. 

But at the same time, he hastened to add that the CAG report has "weightage" as it is by a constitutional body. The CAG report is actually a query raised by the institution on a particular ministry, the minister stressed. 

"CAG is an important institution to safeguard the interests of the exchequer. There is a process involved under which queries are raised by the CAG following which the opinion of the particular ministry or department is obtained. Then the report is presented to Parliament and becomes its property," he said. 

Moily said then the Public Accounts Committee (PAC) selects a particular paragraph in the report for discussion and then it becomes the right of a particular ministry to give a reply to the PAC. 

To a question on Opposition onslaught on the Telecom Minister, he said "in a healthy democracy you cannot find fault with the opposition. But this does not mean that a particular ministry is actually wrong". 

He said the CAG had raised similar queries when late Pramod Mahajan  was the Communications Minister in the NDA government. "NDA did not volunteer to make him resign... I have no memory of a minister who has resigned following a CAG report," Moily said.

2G spectrum scam: Raja ignored PM's advice, says CAG report

New Delhi:  The report that pushed A Raja through the exit door of the Telecom Ministry has been tabled in the Lok Sabha. Prepared by the government's auditor, the Comptroller and Auditor General (CAG), the document holds Raja responsible on many fronts for violating guidelines, indulging in favouritism and costing the government Rs. 1.76  lakh crores by mishandling the allocation of 2G spectrum in 2008.

There were loud and angry scenes in Parliament once again today, courtesy the Opposition - the Lok Sabha has been adjourned till Thursday, since tomorrow is a national holiday for Eid.
 
Finance Minister Pranab Mukherjee is meeting senior BJP leader LK Advani in the latter's office to discuss a possible end to the stand-off in Parliament. Parliamentary Affairs Minister Pawan Bansal is at the meeting too.

Raja was forced to resign on Sunday night under considerable pressure from the Congress, which has been attacked in Parliament by a united Opposition for corruption within its ranks.  

The resignation was described as a welcome step by the Opposition but it continues to demand a Joint Parliamentary Committee (JPC) to investigate the 2G scam.  The government has said there is no question of agreeing to this. 

Parliament has not functioned at all this winter session - the Opposition says it won't let the House get to work till a JPC is announced.

What the CAG Report says about Raja

"The Honourable Minister of Communication & IT, for no apparent logical or valid reasons, ignored the advice of Ministry of Law and Ministry of Finance, avoided the deliberations of the Telecom Commission to allocate 2G spectrum, a scarce finite national asset at less than its true value on flexible criteria and procedures adopted to benefit a few operators."

Details are also emerging on how Raja bent the rules for a few corporates who walked away in 2008 with 2G licenses at what experts describe as throwaway prices based, inexplicably, on 2001 rates.

Several of the companies should have been declared ineligible, says the CAG report.

Swan Telecom and others favoured 

Swan Telecom was among those that won a 2G license in 2008.  The charges in the CAG report are that Swan should not have been considered for a license because Reliance Communications held 10.7% stake in Swan - and according to the rules, a telecom operator cannot own more than 10% stake in another telecom company operating in the same service area.

The application should have been rejected by the Department of Telecom (DoT).

The CAG report says, "It was evident at the time of applying for license that the substantial equity of M/s Reliance Telecom in M/s Swan was 10.7%. Since M/s Reliance Telecom was operating in all the service area for which M/s Swan Telecom had applied for the license, their application was not in conformity with Clause 8 of the guidelines". 

Monday, November 15, 2010

Manipal univ starts new courses in Karnataka campus

Manipal, Nov 15: The Manipal University here has introduced new courses for the new academic year, besides enhancing the freeships for the new session of 2010-11 for which the admission process began here today.

Announcing this at a press conference University Vice-Chancellor K Ramnarayan and Registrar G K Prabhu said the Board of Management had also agreed to the proposal of awarding scholarship scheme of three year to those take up PhD courses from the new academic session.

Under this scheme, 13 students have been shortlisted out of the 180 applications received.

During the first year, the students will be paid Rs 16,000 per month, whereas it will be Rs 17,000 during the second year and Rs.

18,000 in the third year. The university will also not undertake any service bonds, they said and added that this is the first private university which has introduced such scholarship scheme to the PhD students depending on the availability of guides more students will be registered from the next academic session.

Yeddyurappa to set up panel to probe land deals

Bangalore, Nov 15 : Karnataka Chief Minister B.S. Yeddyurappa Monday declared that he would set up an inquiry commission headed by a former Supreme Court judge to investigate land deals across the state, especially in and around Bangalore, over the past 10 years.

"I have decided to set up an inquiry commission headed by a former judge of the Supreme Court to go into the allotment of sites and de-notification of land under special circumstances during various regimes in the past 10 years, including our government since May 2008," said Yeddyurappa, facing allegations of irregularities in allotment of land to his sons.

Denying any wrong doing or violation of law in allotting prime land in and around Bangalore to his two sons B.Y. Vijeyendra and B.Y. Raghavendra, the chief minister said two acres of prime industrial plot at Jigani on the city's outskirts was given in 2007 to Fluid Power Technologies Ltd, in which his two sons were directors.

"Two acres of land in Jigani industrial area was allotted to the company as per norms to expand its business. Though the three-year-old company paid the land cost to the KIADB (Karnataka Industrial Area Development Board), the plot had not yet been given due to a dispute between land owners and the board," Yeddyurappa said.

Yeddyurappa was then the deputy chief minister in the 20-month-old coalition government (2006-07) headed by Janata Dal-Secular leader H.D. Kumaraswamy, who is a Lok Sabha member from Ramanagara since May 2009.

Raghavendra is also a Lok Sabha member from Shiomga, the home district of Yeddyurappa.

Refuting charges by opposition leaders against him and his family members in the media on various land deals during the 30-month-old first Bharatiya Janata Party (BJP) government in the state, Yeddyurappa said no regulation was violated for allotting a 4,000 square feet residential site in Bangalore to Raghavendra under the chief minister's discretionary quota.

"Several other lawmakers, including MPs and the state legislators, were allotted residential sites developed by the state-run Bangalore Development Authority (BDA) under the discretionary quota (G category)," he said.

Sharing facts and figures pertaining to the BDA allotments over the last two decades, Yeddyurappa said 149 sites were sanctioned during 1996-99 by then chief minister J.H. Patel, 334 sites during then Congress government headed by current External Affairs Minister S.M. Krishna (1999-2004), 76 sites in 2004-2006 under then chief minister Dharam Singh, 288 sites during Kumaraswamy's 20-month government, and 136 sites under his tenure.

"Allotment of sites to sitting and former lawmakers and achievers in various fields under the 'G' category has been in practice over the years and during all regimes. Raghavendra was allotted a site under the MP quota, which is no violation of any rule," Yeddyurappa said.

Singh allotted sites to his daughter and relatives, while Kumaraswamy sanctioned 30 adjacent sites in a Mysore to his family members and relatives when he was the chief minister from February 2006 to October 2007.

Accusing the opposition leaders of misleading the people and tarnishing his image to cover up their irregularities, the chief minister said the allegations were baseless and trivial as their efforts to destabilise his government miserably failed last month.

"The intention of the opposition leaders is very clear. They are indulging in false propaganda because they are unable to digest the popularity of my government, implementation of various welfare schemes and development programmes," he said.

"Having failed to bring down the BJP government, they are looking for new issues," Yeddyurappa added.

426 killed in 2010 trying to infiltrate Jammu and Kashmir

New Delhi, Nov 15 : Defence Minister A K Antony on Monday said that 426 terrorists and have lost their lives in infiltration attempts through Jammu and Kashmir so far this year.

He said that the Army has adopted a robust counter infiltration strategy which has an appropriate mix of technology and human resource put together to check infiltration effectively.

Establishment of effective Counter Infiltration grid along the India Pakistan border is dynamic in nature, the minister informed opposition members Yashwant Sinha and Narendra Singh Tomer in reply to a question.

The posts along the Line of Control are held based on tactical considerations depending upon threat, terrain, task, and resources. Surveillance and domination of these posts is ensured by maintaining an effective vigil, he added

60 defence air mishaps in 3 years

New Delhi, Nov 15 : A total of 60 aircrafts, including MiG 21 and helicopters of the armed forces, have crashed during the last three years, Defence Minister A K Antony disclosed in the Lok Sabha on Monday.

Forty three service personnel and five civilians were killed in these accidents. Twenty civilians were injured, the minister informed, in reply to a question raised by Bharatiya Janata Party (BJP) member Ravindra Kumar Pandey.

The minister said that each crash is investigated through a Court of Inquiry and remedial measures are undertaken accordingly to check their recurrence in future.

Phasing out of a particular aircraft and its replacement is decided based on operational requirements of the services, which is reviewed from time to time, he added.

Why criminal case should not be filed against Roy: HC to Delhi Govt

NEW DELHI: The Delhi high court, on Monday, issued a notice to the city government seeking its response as to why criminal case should not to be registered against hardline Hurriyat leader Syed Ali Shah Geelani, writer Arundhati Roy and Delhi University professor S A RGeelani for allegedly making anti-India speeches.

Justice Hima Kohli asked the government to file its response to a petition seeking criminal prosecution of Geelani and others under the charge of sedition and other offences.

The court passed the order on a petition seeking initiation of criminal proceedings against them.

Advocate Sugriva Dubey, appearing for the petitioner, submitted that the government should be directed to take action under section 124 A IPC (sedition).

Has NIA filed independent case against me: Kasab asks HC

MUMBAI: Pakistani terrorist Ajmal Kasab, given death sentence for his role in the 26/11 attacks, today asked whether the National Investigating Agency (NIA) had registered an independent case against him and that it would soon interrogate him.

In a petition filed before the Bombay High Court, his lawyer Amin Solkar said, "The report indicates that the 26/11 probe, on the basis of which Kasab was convicted, was either incomplete or a denovo (fresh) investigation is on the cards.

"This would amount to double jeopardy and also directly interfere in the case of confirmation of Kasab's death sentence pending before the high court."

Justices Ranjana Desai and R V More asked government counsel Ujjwal Nikam to file a reply on November 18 to the issues raised by Kasab.

Kasab's petition asked "whether NIA, which was set up after the 26/11 attacks, was authorised to conduct investigation and file a charge sheet?... Why till date it had not done so?"

The petition also questioned whether investigation in all the 12 cases registered pertaining to the 26/11 terror attacks was assigned to Mumbai Crime Branch or NIA? It also asked whether the probe by Mumbai Crime Branch was legal?

Kasab also sought to know under what provisions Maharashtra permitted NIA to interrogate him. He also questioned the report which said that his death sentence would be suspended until NIA finishes probe. Can a sentence be suspended when its confirmation is pending before High Court?

Kasab raised a legal point whether NIA can register an independent case against him in respect of the same 26/11 terror attack in view of section 300 of CrPc which says a person convicted of an offence cannot be tried again
.

Govt to take strong action against corruption: Rahul Gandhi

FURSATGANJ: Amid storm in Parliament over reports of various scams, including 2G spectrum allocation, Congress leader Rahul Gandhi said the government was taking "strong action" on the issue of corruption.

"It is an important issue and we need to be very strict on corruption... the government is in the process of taking strong action," he told reporters here.

He was replying to a question on reports of major scams in the spectrum allocation, Commonwealth Games projects and Adarsh Housing society. Opposition's demand for JPC probe into these cases stalled Parliament for the fourth consecutive day today.

The Amethi MP, who is on a three-day tour of his Lok Sabha constituency, was speaking on the sidelines of a function to inaugurate a building and auditorium of Footware Development and Design Institute here.

The Congress leader said the quantum of development in Uttar Pradesh was low.

"Development in UP is low as compared to what could have been done, but there are certain constraints. You can see the state of roads even outside the auditorium," he said.

The Congress general secretary said, in his view, the government's role should be to support industrial growth.

"If the UP government's focus is in the right direction, the state could be developed... there are no shortcomings in the people here," he said.

Earlier, his cavalcade was stopped by women employees of Sheena Textiles, who were demanding that the closed unit be re-opened.

The workers submitted a memorandum to the leader, who assured to look into the matter.

Earlier on his arrival at Amausi airport in Lucknow Rahul was received by senior leaders including Digvijay Singh, UPPCC president Reeta Bahuguna Joshi and CLP leader Pramod Tiwari.

CWG scam: Emails doctored, Kalmadi aide Darbari arrested

New Delhi:  T S Darbari, who was sacked from the Commonwealth Games Organising Committee shortly before the Games began, has been arrested by the CBI.
Darbari was a close aide of Suresh Kalmadi who was Chairman of the Committee. 
  
Registering its first case in alleged irregularities in Commonwealth Games, CBI today filed two separate cases involving UK-based A M Films and former officials of CWG Organising Committee on charges of forgery and cheating in organising Queen's Baton Relay in London.
Immediately after registering the cases, the CBI carried out searches at four places in the national capital region including office of CWG Organising Committee, agency officials said.

The searches were conducted at the residence of sacked Joint Director General T S Darbari, deputy director-general Sanjay Mahendroo and Raj Singh, a Director level officer in the OC, the officials said.
Darbari and Mahendroo were suspended initially after reports of scam started appearing in the media. Both the officials were sacked later.
The first case names London-based A M Car/Van Services and its owner Ashish Patel besides Darbari, Mahendroo and Singh under sections 468 (forgery of court records and public documents), 471 (Using forged documents as genuine), 120-B (criminal conspiracy) of IPC and Prevention of Corruption Act.
The second case involves London-based A M Films, Patel, Mahendroo, Darbari and others under sections 420 (cheating), 120-B (criminal conspiracy) of IPC and Prevention of Corruption Act.
As searches were on, the sacked officials were being questioned by the CBI about the Queen Baton Relay for which a grand function was held in London.
The CBI had started looking into complaints related to alleged irregularities in Queen's Baton Relay (QBR) event and is examining documents pertaining to it, including those related to transfer of funds.
The Enforcement Directorate had registered its first case under FEMA in CWG after British authorities referred to the Indian High Commission a matter regarding A M Films, a little-known London-based company, to which a huge sum of money was transferred through the Royal Bank of Scotland.
According to the OC documents, the money transaction was justified by the members saying "in view of the short time available and the risk of the cancellation of the QBR event, the Committee decided to compare the quotes (of different vendors in London) and evaluate them, keeping in view the cost and time factor.
"The Committee noted that out of the offers, the offer of A M Films, UK at GBP 127712 exclusive of taxes is cheaper compared to other vendors...The Committee therefore recommends that the lowest offer of the GBP 127712 received from AM Films, UK be accepted," it said.
"The firm has asked for hundred per cent advanced payment and in view of the short time available and the risk of event cancellation, the committee recommends that the advance payment of hundred per cent may also be given to the firm (AM Films) to facilitate taking up the work in time," according to the documents.

No compromise till JPC ordered in 2G, Adarsh, CWG scams: BJP

Irked by the government's rejection of a JPC probe in 2G spectrum allocation, BJP today said there would be no compromise till such a panel was formed to go into the case and scams in Adarsh housing society and CWG projects. "We demand a JPC probe into the three scams. We stand by it. There will be no compromise till the JPC is formed," deputy leader of BJP in Rajya Sabha S S Ahluwalia told reporters here. His remarks came after the government rejected the opposition's demand for a JPC probe into the 2G spectrum allocation issue saying it was "meaningless".

He said the executive committee of BJP Parliamentary party met this morning followed by a meeting of NDA leaders, where it was decided that the opposition would continue to press for setting up of a JPC. "Besides the NDA, some other opposition parties are demanding a JPC. This demand is now coming from four corners. Now everyone (all opposition parties) is demanding it", Ahluwalia claimed.
On whether Parliament will not be allowed to function till their demands are met, he said, "Running the House is the government's task. Our responsibility is to help it. We will not extend our help till our demands are met."
Asked if by demanding a JPC probe the BJP was showing its lack of confidence in senior party leader Murli Manohar Joshi, who heads the Public Accounts Committee, Ahluwalia said the PAC is meant for "post-mortem of CAG report. It does not probe. The JPC on the other hand has its own terms of reference. It has the mandate of the House, on which it works."
Ahluwalia wondered whether the issue of BJP lacking confidence in Joshi was being raked up by the ruling party to divide the opposition. He said a JPC was formed into the Bofors scam though there was a CAG report on the issue and added, "NDA had formed a JPC on Pepsi cola and had made present Agriculture Minister Sharad Pawar its chairman."
When reminded that there was no JPC probe into the Tehelka sting operation, in which former BJP president Bangaru Laxman was allegedly involved, Ahluwalia said, "Tehelka was a sting operation and government rules were not bent to favour anyone."
To a question on DMK's reported demand that JPC should probe issuance of 2G spectrum licences since 1999, the BJP leader said the party would support such a move. About the land-related controversy allegedly involving Karnataka Chief Minister B S Yedurappa's son, he said, "There is no authentic report against Yeddyurappa and the Lok Pal in the state is competent to carry out an authentic probe. If anybody is guilty he will not be spared."

CWG scam: CBI files 2 cases, but mum on Kalmadi


CBI on Monday registered two cases in connection with alleged irregularities during the Queen's Baton's Relay in London and carried out searches at CWG Organising Committee's office and at residences of some of its former officials.
CBI looks to be targetting some CWG Organising Committee members but is totally silent on the role of the top man, Suresh Kalmadi, the OC chairman whose signature was crucial to the payments made.
The two cases were registered against London-based AM Films and AM Car, which had been given contracts for the Baton Relay, official sources said.
The searches were conducted at the residence of T S Darbari, joint director general of the Commonwealth Games Organising Committee, Sanjay Mahendroo, OC deputy director-general, and Raj Singh, a Director level officer in the OC, they said.
The first case has been registered against London-based A M Car-Van Hire Limited, its owner Ashish Patel, Darbari, Mahendroo and Singh under various sections of IPC and Prevention of Corruption Act dealing with forgery, cheating and abuse of official position, CBI officials said.

2G scam: Kapil Sibal likely to get Telecom portfolio, say sources

New Delhi:  Kapil Sibal, currently Minister for Human Resources Development, is likely to be asked to take additional charge of the Telecom Ministry. A Raja resigned as Telecom Minister last night after a glut of accusations over his alleged corruption and pivotal role in the 2G scam.
Last week, Sibal was given additional charge of Science and Technology after Prithviraj Chavan was moved to Maharashtra as the chief minister following Ashok Chavan's dismissal on the grounds of misusing his office to corner apartments for his family in a building that was meant to house war widows and defence veterans.
It's not yet clear whether the Telecom portfolio will be handled temporarily by Sibal till a larger cabinet reshuffle takes shape.
The DMK- which had till last evening resisted Raja's exit - may not be entirely pleased with the Telecom portfolio not being assigned to another DMK leader. After Raja resigned, both the Congress and the DMK have stressed that their alliance remains intact, and that the DMK will continue to participate in the UPA government at the Centre.

In Parliament, the Opposition once again demanded- chanted in unison, in fact - "We want a JPC (joint parliamentary committee)." The government, however, emphatically ruled this out. "Where is the need for the PM to speak on Raja?" said Finance Minister Pranab Mukherjee. 
 Raja was forced towards the exit door of his ministry mainly by a report of the government's auditor that was leaked last week to the media. The Comptroller and Auditor General (CAG) was ferocious in its indictment of Raja, accusing him of costing the government close to 1.76 lakh crores. Policies that violated official guidelines and favouritism towards companies that seemed ineligible for 2G licenses were attributed directly to Raja. Till 2008, he chose to award licenses at rates determined in 2001.  
Raja has stressed that his resignation should not be misread as an admission of guilt. His party, the DMK, has also maintained that it stands by him and believes he is innocent. 
That crucial CAG report will, sources say, be tabled in parliament tomorrow. Mukherjee has called a lunch meeting of all parties in the hope of ending the impasse in Parliament - since the winter session began last week, the Opposition has refused to let parliament function, protesting that Raja must go, and that the government should set up a joint parliamentary committee because the CBI, which is investigating Raja, is not an impartial body and function as an extension of the government.  
Dismissing that accusation, Home Minister P Chidambaram said that he CAG report will be examined, as its meant to, by the Public Accounts Committee (PAC) which is headed by a leader of the Opposition . 
"A JPC is not needed because the 2 G scam - and the  CAG report will be studied by the Public Accounts Committee (PAC), which is headed by  a member of the Opposition, and is therefore held to be impartial," said Chidambaram.

He PM was expected to address Parliament today on Raja's resignation and the 2G scam, but the government apparently re-thought the issue this morning. "Why should the PM speak?" asked Mukherjee. "In an attempt to turn the tables on the BJP, he referred to the Tehelka expose and said, "When George Fernandes resigned, did Vajpayee make a statement?"
Weekend politics
 
It was a hectic weekend that saw much political activity in Delhi and Chennai. An impatient Raja told reporters at the Delhi airport that there was no question of him stepping down, but there were indications otherwise. 
In Delhi, the Congress' top rung, including the Prime Minster and Sonia Gandhi met to discuss Raja's exit.
In Chennai, Raja met with DMK chief Karunanidhi twice before heading to Delhi. At one point, seven senior Congress leaders, including Home Minister P Chidambaram were reportedly in touch with the DMK to orchestrate Raja's exit. 
Government's auditor last week blamed Raja for costing the government close to Rs. 1.76 lakh crores by undervaluing 2G spectrum in 2008, and, by following unfair practices in deciding who would be awarded 2G licenses.  The Comptroller and Auditor General's report (CAG) was leaked to the media.  It is to be tabled in Parliament shortly.
TRAI to recommend penalty

•    Telecom regulator TRAI is likely to recommend huge penalty or cancellation of licences of those operators who have either failed to launch services or cover particular areas within the stipulated time. 
•    Many of them are yet to meet the roll-out obligations, or even launch the services. 
•    TRAI recommendations would include all the new licensees, who were given in January, 2008 by Raja. 
•    The TRAI Chairman is believed to have said they are working on it, the recommendations may be given soon to the government.
The Supreme Court which is monitoring the case is scheduled to hear the matter on Monday. Raja's resignation, hours ahead of that hearing, may have been stage-managed by the Government to avoid more embarrassment in court.  At an earlier hearing, the court asked why Raja had not been removed from office.
WHAT IS THE 2G SCAM?

•    2G licenses issued in the year 2008 at 2001 prices
•    Raja insisted on 'first come-first served' policy
•    9 companies got licenses for nearly Rs. 10, 800 crore
•    Some firms sold partial stakes for much higher rates
•    CAG: Govt lost between Rs. 1.4 & 1.76 lakh crore 
•    CAG: Raja ignored advice of Law, Finance ministries

Friday, November 12, 2010

'I don't have any baggage, that can be an advantage'

The prize has taken a long time coming and when it did, there was more than an element of surprise. Since the Adarsh housing scam broke out, a new CM in Mumbai has looked imminent. With several satraps ruled out, hit by their association with the scandal, MoS in PMO Prithviraj Chavan, 64, came to fit the bill for his clean image. TOI spoke to Chavan shortly before he left for Mumbai. 

When were you informed that you would be the next CM of Maharashtra? 
I met the Congress president in the morning. Pranab Mukherjee also spoke to me. I later met the Prime Minister, expressed my gratitude for the support and affection he has shown me and handed in my resignation letter as central minister. It's the decision of the high command.

What are your immediate tasks? 
I will first meet all our party workers and leaders in the state. I will do that on reaching Mumbai. I will try and take everyone along and work to convince all the naysayers, the sceptics that we can do something good for Maharashtra; that this is a shared goal and that I believed in the future of Maharashtra. This may be more important than spelling out specific priorities.

Will your experience at the Centre help you in your new job? 
It should. The Prime Minister had entrusted some important work to me. So had the party. Dealing with difficult issues up close is educative. The work that had to be done in working out a consensus on the nuclear liability bill was one such lesson. Politics is often about being patient and avoiding confrontation.

Will lack of state-level experience be a disadvantage? 
Yes, I have not worked at the state level. But I am not unfamiliar with state issues or what has been happening there for a while. I don't have any baggage. Maybe my lack of baggage will work to my advantage. Not having any particular affiliations can help me arrive at correct decisions.

Maharashtra has slipped in recent years and is not seen as such a hot destination... 
This had been due to several factors. Investment is coming in, but much of it concentrated in the metros. We need to pay more attention to rural areas where a lot of work is needed. My priority is to work to deliver a transparent and efficient administration.

What would you say about the circumstances (Adarsh scandal) that made you CM? 
Some mistakes have happened after which the high command has taken certain decisions. We will see what the probe says when the report is ready. Now I look forward to working with Ajit Pawar and doing a good job for the state.

While you have to work with NCP, Congress also has a desire to grow on its own. It's a tricky situation, especially for a person like you who is seen to be opposed to Sharad Pawar? 
We have been in coalition (with NCP) since 1999. So we can work together. Each party, including Congress, has a legitimate right to grow on its own. This is natural and there is no contradiction. (On Pawar) It is not right...there is nothing personal.

Will you choose to go the council route or prefer direct election? 
I am not sure as yet.

Given Maharashtra's size, rising crime and terrorism often targeting Mumbai, how important is law and order? 
It is very important. This is an area that needs attention and the government will not be lacking in this respect
.

Evidence against Raja not conclusive: Law Minister



New Delhi:  The line of defense for Telecom Minister A Raja extended from Tamil Nadu to Delhi today.First, Raja told NDTV that there's no reason for him to resign over his policies on 2G spectrum. That was seconded by M Karunanidhi, who is the chief of Raja's party, the DMK.  

And in the afternoon, the Law Minister Veerappa Moily said it's premature to assume Raja is guilty on the basis of a draft report by the government's auditor, the Comptroller and Auditor General (CAG).  

Slamming Raja, the CAG report said, "The Honourable Minister of Communication & IT, for no apparent logical or valid reasons, ignored the advice of Ministry of Law and Ministry of Finance, avoided the deliberations of the Telecom Commission to allocate 2G spectrum, a scarce finite national asset at less than its true value on flexible criteria and procedures adopted to benefit a few operators."

That report, to be tabled in Parliament, has been leaked and reported on extensively in the media, including NDTV. It is decisive in stating that the allocation of 2G spectrum in 2008 was ill-advised, and that Raja is responsible for costing the government thousands of crores by selling licenses for the spectrum, instead of auctioning it.

"The matter is before the Supreme Court...the CAG findings are not final," said Moily. "The Telecom Ministry will be given the opportunity to answer the question raised by CAG...till that is done, you cannot say that CAG findings are final and there is conclusive evidence."

That's the sort of comment that will be seized by the Opposition, which has been insisting that the government will not sacrifice Raja because he is critical to the survival of the UPA government at the Centre. Its 18 MPs make the DMK a prized ally in the UPA coalition. The Congress indicated its stand earlier this week by stating that it has "to respect the dharma of coalition politics."

Moily also said CAG had raised similar queries when Pramod Mahajan was the Communications Minister in the NDA government.

"NDA did not volunteer to make him resign... I have no memory of a minister who has resigned following a CAG report," Moily said.

Till this morning, there was speculation and hope among the Congress that Karunanidhi may decide that Raja has to step down. The DMK chief was expected to study the leaked CAG report today, ahead of the prime minister's return to India from the G-20 summit in Seoul.

Some sources said the PM was likely to phone Karunanidhi to discuss the raging Raja controversy. Parliament has been stalled since its session began this week with the Opposition adamant that Raja be held accountable.

BJP hits out at Government over Raja

The Opposition, which has stalled proceedings in Parliament over the spectrum issue, demanding the ouster of A Raja, hit out at the Government today, saying the Congress has surrendered to the DMK.  

The Opposition also defended itself on the charges made by Raja, saying they followed the Cabinet rules in 1999, during the NDA regime.

"Raja is stuck in 1999. In Oct 2003, NDA decided that spectrum allocation will now be allocated only by auction. It was a cabinet decision. But UPA forgets that. Raja always says that he has taken every decision after asking the PM, always consulted him. That means he's making the PM a co-accused. Has that happened with the PM's consent that spectrum is distributed by free will and not by auction? Was it the Cabinet's decision or ministry's?" questioned Prakash Javadekar, Spokesperson, BJP.