Spectrum allocation is India's largest scam: BJP

Describing the 2-G Spectrum allocation controversy as the biggest scam in independent India that had cost the country a whopping Rs 60,000 crore (Rs 600 billion), the Bharatiya Janata Party on Monday criticised Prime Minister Manmohan Singh for defending Telecom Minister A Raja while the investigations are still on.

"Even as the investigations are going on and the accusing finger categorically points to the Telecommunication Minister A Raja, the Prime Minister has today made a statement that the allegations against him were not correct," Leader of Opposition in Rajya Sabha Arun Jaitley said, terming the incident as the biggest scam in Independent India.

He also took a dig at the Prime Minister for stating that "whatever the opposition says is not always correct".

The BJP leader was critical of Singh's reply to a question on Raja's contention that the prime minister was in the loop about the decisions taken in regard to spectrum allocation.

Singh had said he would not like to join issue with his cabinet colleague in public.

"Obviously, the prime minister is no position to agree or disagree," Jaitley said.

The senior BJP leader alleged that "rules of the game were changed" in 2007 when applications for spectrum allocation were invited.

"When applications were invited with October 1, 2007 as the deadline, an artificial cut-off date of September 25, 2007 was created and applications received between September 25 and October 1 were summarily rejected," Jaitley claimed.

Jaitley accused Raja of working hand in glove with some real estate companies who bagged the 2-G contracts.

"All friendly applicants, mostly real estate companies, had been advised to put in their applications on or before October 25, 2007. This is not the Opposition's charge as the prime minister has commented. It is now a judgement of the Delhi High Court," he said.

The high court has quashed the fixation of these cut-off date where-in many experienced players were left out and nine licenses were issued to inexperienced parties.

Jaitley said the price of Rs 1,650 crore (Rs 16.50 billion) per operator was not fixed at the 2007 market-price but at the 2001

price. "The minister's contention that the TRAI had recommended this is wholly erroneous because the TRAI had recommended that the entry fee determined in 2001 is not the realistic price for obtaining the license," he said.

TRAI had suggested re-assessment through a market-mechanism.

Jaitley said those who got the contract did not operate the service and sold it to international players.

"The allotees did not operate the service. All that they owned was a shell company and a guaranteed spectrum. They availed the 74 per cent FDI policy of the government and found buyers/ joint venture partners from the international market," he said.

The companies were overnight valued at over Rs 9,000 crore (Rs 90 billion) and sold by the owners at this rate, Jaitley said.

Only govt can respond to CBI raids: Cong

In the backdrop of CBI raids in the offices of the telecommunication ministry, the Congress said the party was for transparency in public life and has a policy of zero tolerance towards corruption.

"As far as Congress is concerned, we are for transparency in public life. We have a policy of zero tolerance towards corruption," party spokesman Shakeel Ahmed said.

Asked about the spectrum issue and the CBI raids, he said this was for the government to respond as it had the relevant facts.

To a query whether action should be taken against Telecom Minister Raja, Ahmed said his name does not figure anywhere as raids were against some officials.

On the BJP attack on the government on the issue, he said the party wants to take political mileage even if nothing has happened.

"The party whose national president was shown on TV accepting money talks of corruption. We can only laugh at it. . .," Ahmed added.

Asked if Raja should resign on his own, the spokesman said if a specific name comes up, the person concerned should do what someone in public life does.

To a question whether the image of the UPA has been sullied after the raids, he said these are mere allegations.

When recalled that he had served a minister of state in telecommunications ministry in the previous government, Ahmed said as a minister he never dealt with the issue of spectrum.