This Article is From Apr 05, 2011

2G scam: Radia evasive, Tata candid says PAC chairman MM Joshi

New Delhi: Industrialist Ratan Tata and corporate lobbyist Niira Radia were both questioned on Monday by a parliamentary committee that's investigating the massive 2G spectrum scam.  Mr Tata was candid, while Ms Radia was evasive, said the chairman of the committee, BJP leader Murli Manohar Joshi.

Ms Radia runs a PR agency; Mr Tata is one of her biggest clients. His company - Tata Telecom - is being studied for whether it received undue favours from former Telecom Minister, A Raja, who is now in jail on charges of corruption, conspiracy and forgery.

The Public Accounts Committee (PAC) wanted to know  whether Mr Tata and Ms Radia tried to influence the formation of the cabinet in May 2009; the duo, who spent three hours each on their deposition, were also asked about their roles in landing 2G spectrum and mobile network licenses from former Telecom Minister, A Raja, who is now in jail for gifting spectrum at throwaway prices to companies that were ineligible.  

Ms Radia's phones were tapped in 2008 and 2009 in connection with an income tax case.  The tapes were leaked late last year, and reveal her speaking to politicians, bureaucrats, journalists and some of the country's biggest industrialists, including Mr Tata. He has filed a case in the Supreme Court, arguing that his right to privacy was violated when the tapes entered the public sphere.

Ms Radia  is alleged to have lobbied hard for Mr Raja to return as Telecom Minister after the UPA coalition won the general elections in May 2009. Her phone conversations show her working her connections to try and secure the Telecom berth for Mr Raja, instead of another DMK contender, Dayanidhi Maran. Mr Joshi asked her today if this was true.  

Ms Radia told the committee that some of her phone conversations had been doctored.

Among the questions listed for Mr Tata on the committee's questionnaire: "What made you so concerned that 'Maran is going hammer and tongs for Raja'?" and "Why were you so apprehensive of Mr D Maran becoming Telecom Minister?"

Mr Tata was also asked about why the Tata Group advanced a loan to real estate giant Unitech, enabling it to get spectrum and license in 2008 from Mr Raja. Unitech has been named by the CBI as one of the main beneficiaries of Mr Raja's scam.

Mr Tata reportedly told the committee that he has not paid any bribe or influenced government formation.

In October 2007, Tata Teleservices was also granted permission to switch its platform for its mobile network - from CDMA mode to the more profitable GSM. Mr Tata was asked about how much his company paid to get this dual-technology license. The allegation is that Tata was granted this license was 1600 crores, which was far below market rates and was based on 2001 prices.
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