Supreme Court notice to Centre, 11 telecom firms
Petition seeks direction to cancel 2G spectrum licences
New Delhi: The Supreme Court, which is already monitoring the investigation in the 2G spectrum scam, on Monday issued notice to
the Centre on a petition seeking a direction to cancel the licences allegedly issued illegally during the tenure of the
former Communications Minister, A. Raja.
The petition was filed by the Centre for Public Interest Litigation; the former Chief Election Commissioners, J.M. Lyngdoh, T.S.
Krishnamurthy and N. Gopalaswami; and the former Central Vigilance Commissioner, P. Shankar and others.
A Bench of Justices G.S. Singhvi and A.K. Ganguly also issued notice to the 11 companies —Etisalat, Uninor, Loop Telecom,
Videocon, S-Tel, Allianz Infra, Idea Cellular, Tata Tele Services, Sistema Shyam Teleservices, Dishnet Wireless, and
Vodafone-Essar — which were granted licences after January 2008.
The Bench posted the matter for further hearing on February 1.
It asked Janata Party president Subramanian Swamy who also sought a similar relief, to implead the licensees so that it could pass
appropriate orders. Dr. Swamy drew the court's attention to the statement made by Communications Minister Kapil Sibal that no
loss was caused in the 2G spectrum allocation and said he would be filing a contempt application.
When Justice Singhvi wanted to know from counsel Prashant Bhushan, appearing for CPIL, “who is the competent authority to
cancel the licences if it is illegal,” Mr. Bhushan said, “it can be done by the government itself.” When the judge wanted to
know whether the court had the power to cancel the licences of companies which had not fulfilled the rollout
obligations, counsel answered in the affirmative. The court then asked counsel to implead the Telecom Regulatory Authority
of India (TRAI) as a party, pointing out that it remained silent when the telecom companies failed to fulfil the rollout obligations
within the stipulated period.
Court refuses to take cognisance of Sibal stand
New Delhi: The Supreme Court on Monday made it clear that it would not take cognisance of media reports about the
statement of Union Communications Minister Kapil Sibal disputing the report of the Comptroller and Auditor-General
and saying that no loss was caused to the exchequer in the 2G spectrum allocation.
When counsel Prashant Bhushan took exception to the statement made by Mr. Sibal, Justice Singhvi observed, “The issue has now
become debatable.” When Mr. Bhushan submitted there was a huge loss to the government as the licences were sold to other
entities at three times the original price, Justice Singhvi said: “We would not go by media reports [on Mr. Sibal's statement]. We go
by affidavits. It is not the government's statement. The CAG report is part of our records. We have noted everything in our order.
We will ask the government how much loss the national exchequer has suffered.”
Congress, JD(S) stall House
BANGALORE: The Karnataka Assembly could not transact any business on Monday as the Opposition staged a dharna,
demanding that the CBI probe the alleged involvement of Chief Minister B.S. Yeddyurappa in land scams, besides
charges of corruption and nepotism against the government. They also sought his resignation.
As the House met for the day, Opposition leader Siddaramaiah demanded that Speaker K.G. Bopaiah allow an
adjournment motion for a debate on the corruption charges.
The Opposition did not allow question hour and insisted on an adjournment motion straight away.
The House, which was adjourned before lunch-break, was later adjourned for the day, with the Opposition continuing the dharna.
The Congress and JD(S) members claimed that the State exchequer had lost thousands of crores of rupees since Mr. Yeddyurappa
assumed office.
The Chief Minister and his Cabinet colleagues were involved in land scams. He also showed favouritism to his relatives
and family members in land allotment and denotifications, the Opposition alleged.
Sibal ignored other scenarios in CAG report
Also failed to notice how his predecessor misled the Prime Minister
NEW DELHI: Communications and IT Minister Kapil Sibal might have termed the Comptroller and Auditor-General of India (CAG)'s
calculation of loss to the exchequer from underpricing of 2G spectrum “utterly erroneous,” but he has completely ignored other
scenarios presented by the auditor where new operators made crores by selling their stakes to global telecom giants
or were themselves ready to pay more for the scarce spectrum.
Mr. Sibal, who has made flip-flops in his statements by first criticising the telecom policy and then blatantly defending it, also failed
to notice how his predecessor, A. Raja, misled the Prime Minister while single-handedly deciding on the allocation of licence.
Similarly, the recommendations of the Telecom Regulatory Authority of India (TRAI) on revision of spectrum prices were totally
undermined. And when the Centre followed the market mechanism to determine the value of licences since early 1990,
what stopped it from doing the same in 2008 when the mobile connections stood at over 26 crore and teledensity at
26 per cent against 3 per cent in 2001?
In its report, the CAG has clearly stated that the four sets of loss figures it had projected were totally “presumptive.” The auditor
has also pointed out that it had “looked at various indicators to assess a possible [presumptive] value from the various records
available rather than going by any mathematical/econometric models.” While the CAG pegged the loss at between Rs. 57,000 crore
and Rs.1.76-lakh crore, Mr. Sibal said the government made “no loss” in allocating spectrum in 2008. He also termed the Rs.
1.76-lakh crore loss figure based on 3G pricing totally erroneous.
Interestingly, when companies like S Tel Ltd were ready to offer more price for spectrum, the Department of Telecom
completely ignored it. In its letter to Prime Minister Manmohan Singh, S Tel had volunteered to pay an additional
revenue share of Rs. 6,000 crore and later enhanced its offer to Rs.13,752 crore in its letter to Mr. Raja. It even
agreed to increase the bid price in the event of any counter bid.
As per calculations based on S Tel's offer, the government exchequer would have got Rs. 65,909 crore as against Rs. 12,386
crore collected by DoT. “This indicated that had an open process of bidding/auction been used for price discovery and hasty and
abrupt changes in the deadlines date not been made, it could have been possible for the government to have received at least this
amount,” the CAG said in its report.
Similarly, a comparison of foreign equity attracted by the new entrants in the Indian telecom market would reveal that the cost of
pan-India licence could be between Rs. 7,758 crore and Rs. 9,100 crore, while the DoT issued pan-India licences at
Rs.1,658 crore. The government could have earned revenue ranging from Rs. 58,000 crore to Rs. 68,000 crore.
That new operators could draw huge foreign investments, even before establishing a foothold in the Indian telecom market would
suggest that acquiring licence with its allotment of spectrum for rollout was the main factor which attracted a huge FDI. “The value
which should have been accrued to the public exchequer went as a favour to the new licensees in the form of huge capital infusion
for enriching their business,” the CAG said.
Notably, in November 2007, Prime Minister Manmohan Singh wrote to Mr. Raja asking him to consider introduction of a transparent
methodology of auction and revision of the entry fee, which was benchmarked on an old figure (Rs.1,658 crore for
pan-Indian based on the 2001 auction). However, Mr. Raja gave incorrect information to Dr. Singh that “the issue of
auction of spectrum was considered by the Telecom Commission and was not recommended.” However, the fact was that TRAI
recommendations on pricing were never discussed at a meeting of the full Telecom Commission between the date of
submission of TRAI's recommendations and the date of Mr. Raja's letter.
Ironically, the DoT even overruled objections of the Ministries of Finance and, Law and Justice, and arbitrarily went ahead with
allocating licences when the matter should have been referred to the Empowered Group of Ministers as per the Government
of India (Transaction of Business) Rules, 1961.
The CAG observed that the Telecom Ministry was “not open to the idea of discussing and deliberating the issues involved at
appropriate levels even when there was a high risk of huge revenue loss to the government exchequer.”
Pakistan seeks report on Samjhauta blasts probe
ISLAMABAD: Pakistan on Monday officially asked India for a progress report on investigations into the Samjhauta Express blasts,
in which 42 Pakistanis were among those killed. The report was sought in the wake of news reports in the Indian media about
jailed Rashtriya Swayamsevak Sangh leader, Swami Aseemanand, admitting to his role in the 2007 blasts.
The Acting Deputy High Commissioner of India, G.V. Srinivas, was called to the Foreign Office by Director-General (South Asia)
Afrasiab and told that a response from New Delhi should be conveyed at the earliest.
According to a statement put out by the Foreign Office, Pakistan drew the Indian diplomat's attention to reports on the
investigations into the blasts. “It was reiterated to him that the government of Pakistan was awaiting the progress made by the
government of India in the investigations.”
Of late, Pakistan has been using the investigations into the blasts to counter criticism of delay on Islamabad's front in
the Mumbai terror attack case. Peeved at India making the dialogue process hostage to the Mumbai terror case, Pakistan has
time again accused New Delhi of raising a hue and cry on terrorism, while ignoring its own responsibilities.
Bharat Jyoti Award for K.V. Raman
NEW DELHI: Agricultural scientist K.V. Raman has been awarded the prestigious Bharat Jyoti Award of the India
International Friendship Society for his contributions to science, technology and development.
A former Chairman of the Agricultural Scientists Recruitment Board under the Indian Council of Agricultural Research, Dr. Raman
was also Director of the B.V. Rao Centre for Sustainable Food Security at the Chennai-based M.S. Swaminathan Research
Foundation.
He has authored severall books and published over 200 research papers in national and international journals, which are cross-
referred extensively.
Apart from a doctorate from the University of Wisconsin, United States, he also received management training at the Indian
Institute of Management, Ahmedabad, and the Cornell University. He was also on the faculty of the Michigan State University.
The former Election Commissioner, G.V.G. Krishnamurthy, presented the award to Dr. Raman at a function here on Friday.
Baldev Raj is INAE's new chief
Chennai: Baldev Raj, Director of the Indira Gandhi Centre for Atomic Research (IGCAR) in Kalpakkam has been elected
president of the Indian National Academy of Engineering (INAE).
U.S.- China military talks reveal frictions
Washington: In comments to media made in Beijing, United States Defence Secretary Robert Gates and Chinese Minister of
National Defence General Liang Guanglie suggested that they had reached a broad agreement on the need for stronger
bilateral military ties. Yet they respectively hinted that the China's development of a stealth aircraft and the U.S.' arms sales to
Taiwan last year were points of disagreement.
Following a series of meetings between top defence officials from the two countries this week, a precursor to Chinese President Hu
Jintao's visit to Washington on January 19, Mr. Gates said, “In order to reduce the chances of miscommunication, misunderstanding
or miscalculation, it is important that our military-to-military ties are solid, consistent and not subject to shifting political winds.”
Regarding China's development of a new, fifth-generation stealth fighter, which was said to have demonstrated anti-
satellite and anti-ship ballistic missile capability, the American Forces Press Services quoted a U.S. defence official
saying, “China must defend itself, but... the Chinese should be clear about their strategy and doctrine. That would go a
long way toward dispelling concerns about the Chinese military.”
At a press briefing Mr. Liang responded to the issue arguing that the gap between the Chinese military and more advanced
countries was “at least two or three decades,” and that the military improvements were not targeting any nation in particular.
Touching upon the U.S.' arms sales to Taiwan last year, following which Beijing broke off military-to-military contact
with Washington, Minister Liang noted, “On that our position has been clear and consistent: We are against it, because the U.S.
arms sales to Taiwan seriously damaged China's core interests.”
In particular, they expressed solidarity regarding discussions on North Korea and the crisis in the Korean peninsula. Mr. Gates said
the U.S. and China could “work to maintain peace and security on the Korean peninsula by facilitating engagement
between the two Koreas and working toward the de-nuclearisation of the Korean peninsula”.
Euskadi Ta Askatasuna ETA offer of ceasefire not sufficient: Spain
MADRID: Armed Basque separatists ETA announced on Monday a permanent, verifiable ceasefire after more than 40
years of bloodshed but Spain's government rejected it as insufficient.
It was the first unilateral declaration of a permanent ceasefire in ETA's campaign of bombings and shootings for a homeland
independent of Spain, which has claimed the lives of 829 people.
“ETA has decided to declare a permanent and general ceasefire which will be verifiable by the international community,” said the
group in text and video declarations.
Behind them on the wall hung the ETA symbol of a snake wrapped around an axe, which represents armed struggle.
Deputy Prime Minister Alfredo Perez Rubalcaba, also Interior Minister, said successive Spanish governments and parties had
demanded an irreversible, definitive end to ETA violence.
Mr. Rubalcaba said ETA clearly wanted to claim a price for its ceasefire by acting as the guarantor of a supposed
negotiation. And the government had repeatedly rejected the idea of an international, rather than Spanish, verification, he said.
But the Minister, who has flatly rejected previous ETA ceasefire offers, was more positive than he had been in the past.
ETA announced what it described as a permanent ceasefire in March 2006 within the framework of negotiations with Madrid.
But in December 2006, ETA set off a bomb in the carpark of Madrid-Barajas airport, killing two men.
Railways, RINL to set up rail axle factory
NEW DELHI: Indian Railways has joined hands with Rashtriya Ispat Nigam Limited (RINL) to set up a new rail axle
manufacturing factory in New Jalpaiguri in West Bengal. AXLE(Machinery . the pin, bar, shaft, or the like, on which
or by means of which a wheel or pair of wheels rotates)
Financial sector: India seeks IMF evaluation
KOLKATA: India has voluntarily sought a comprehensive financial sector assessment programme (FSAP) by the
International Monetary Fund and the World Bank as the country has been found to be compliant with internationally-
accepted financial standards, Union Finance Minister Pranab Mukherjee said here on Monday.
Addressing the second international finance conference, organised by the Indian Institute of Management, Calcutta, Mr. Mukherjee
said the country had done a self-assessment of the financial sector in 2009 and was found “compliant with most of the
internationally-accepted standards I banking security, market and the insurance sector.''
“This has given us the confidence to get our financial sector to be evaluated by the IMF and the World Bank. So we have voluntarily
sought a full-fledged FSAP, which is an international evaluation exercise conducted by the two global bodies,” he said.
Emphasising that the Centre is determined to carry out reforms in the financial sector with financial stability becoming an integral
part of policy discussions, Mr. Mukherjee said the Centre would soon set up a financial sector legislative reforms commission. The
commission would rewrite and clean up financial sector laws and bring them in line with the requirements of the sector.
He pointed out that though the global economic meltdown had ‘compelled' the world leaders to rethink some traditional principles of
financial policy matters, he expressed satisfaction that India among a few other countries had shown a ‘robust growth' of Gross
Domestic Product while the revival process in the U.S. and Europe were facing several problems.
Mr. Mukherjee, however, admitted that the surge in capital inflows and inflation, including the hardening of global commodity
prices, was a matter of concern faced by the Centre. Mr. Mukherjee said the banking sector had been given a target to provide
banking services to every habitat with a population of over 2,000 by March 2012.
