This Article is From Nov 15, 2010

2G scam: PM to make statement in Parliament today

2G scam: PM to make statement in Parliament today
New Delhi: Telecom Minister A Raja finally stepped down yesterday. While the government took credit for high standards of accountability, the BJP said democracy has won.

The BJP seems to have few issues on its agenda with Maharashtra Chief Minister Ashok Chavan, Suresh Kalmadi and A Raja gone within a week.

Prime Minister Manmohan Singh will make a statement in Parliament today on the spectrum issue. Will the Opposition now let Parliament function?

Meanwhile, 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.

2G hearing in SC today
  • Petitions seeking the Supreme Court to monitor the CBI probe into the 2G spectrum scam or setting up Special Investigation Team.
  • During the last hearing SC slammed the CBI for its slow progress in the case, CBI had told SC that it needed six more months to investigate
  • SC questioned the continuance of the Telecom Minister A Raja and said, "the minister is still continuing?"

The Opposition has also been asking for a Joint Parliamentary Committee to investigate the scam. So far, the Government has not agreed to that demand.

Raja's term as Telecom Minister seemed headed for an abrupt end after a report by the Government's auditor last week blamed him for costing the government close to Rs. 1.76 lakh crore 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.


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
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