2G scam: UPA govt goes after CAG,says no loss to exchequer

He said there was “no loss at all” to the exchequer due to allocation of licences and 2G spectrum in 2008.

The period pertains to his predecessor A Raja who was forced to quit on the issue.

“We believe the exercise (by the CAG) was fraught with very serious errors which resulted in a kind of sensationalism which has allowed the Opposition to spread utter falsehood to the people of India and we object to it,” Sibal told a press conference.

Prefacing his remarks with a statement that the Congress party does not attack constitutional institutions like the CAG,he said: “We respect the CAG.”

“We are extremely pained at the methodology adopted by the CAG. Some figures have no basis whatsoever. But it is human to err and to err is human.”

“The CAG has done injustice to itself and the Opposition is doing injustice to the aam aadmi by not allowing Parliament to function,” he said,adding the auditor should not have left the loss figures at being presumptive,which has embarrassed the government and the nation.

He said all operators have been given start-up 4.4 Mhz spectrum which comes bundled with licence and no charges were paid for this frequency.

The minister said no operator/licencee has been charged for the start-up spectrum of 4.4 Mhz,be it in 1999,2001,2003,2005,2007 or in 2008.

He claimed in 1999 a change in policy by the NDA regime from fixed licence fee to the revenue-share regime caused a “net” revenue loss of Rs 1.50 lakh crore.

Sibal,however,said: “We believe prima facie there was some thing wrong in procedures adopted for the allocation of 2G spectrum and that is why the Telecom Ministry has formed a one-man committee to look into the procedures.”

“As and when the report comes we shall take strongest action against the people involved,” he said.

As far as criminal culpability is concerned,CBI is investigating under the monitorship of the Supreme Court,he said.

The CAG in its 77-page report,tabled in Parliament in November last year,had said that due diligence was not followed and even the recommendations of the telecom regulator TRAI were “not followed in spirit”.

The report said the “presumptive” loss caused to the exchequer through spectrum allocation to 122 licensees and 35 dual technology licences in 2007-08 was Rs 1,76,645 crore.

It arrived at the figure on the basis of 3G auction held earlier this year in which the government mopped up over Rs 67,000 crore.

The 2G scam has become a major political issue with the Opposition demanding a Joint Parliament Committee to probe the alleged scam.

The demand,however,was rejected by the government leading to disruption of almost the entire Winter Session of Parliament.