CBI Registers a Case against the then Chairman (Telecom Commission) & Secretary (Telecom); the then DDG (VAS); three Private Cellular Companies, and others for alleged irregularities in the grant of Additional 2G Spectrum and causing a Loss of Rs. 508 Crore (approx) during the period 2001-2007

Press Release
New Delhi , 19-11-2011

CBI has registered a Case, U/s 120-B of the Indian Penal Code r/w Section 13(2) r/w 13(1)(d) of Prevention of Corruption Act, 1988 against the then Chairman (Telecom Commission ) & Secretary (Telecom), Department of Telecommunications, the then DDG (VAS)/DoT, three private cellular companies based at New Delhi & Mumbai, and others for alleged irregularities in the grant of Additional 2G Spectrum and causing a Loss of Rs. 508Crore (approx) during the period 2001-2007. The then Minister for Telecom & Communication has been excluded since he expired.

It was alleged that the then Secretary (Telecom) and the then DDG(VAS), Department of Telecom, entered into a criminal conspiracy with three beneficiary private companies, based at Delhi & Mumbai, and abused their official positions as public servants. The public servants, with approval of the then Minister of Telecom (Communications &IT) (since expired), took an alleged hurried decision on 31.01.2002 to allocate additional spectrum beyond 6.2 MHz in violation of the report of a Technical Committee etc. The accused persons also decided to allocate such additional spectrum beyond 6.2 MHz by charging spectrum fee of an incremental 1% AGR (Adjusted Gross Revenue) only for allotting additional spectrum from 6.2 MHz upto 10 MHz instead of charging incremental 1% AGR on allotment of spectrum beyond 6.2 MHz & charging incremental 2% AGR on allotment of spectrum beyond 8 MHz, as applicable in normal prudence.

It was further alleged that the accused persons showed undue favour and caused undue cumulative advantage of approximately Rs. 508.22 crores to beneficiary companies, including the three aforesaid accused companies, since allocation of such additional spectrum till such decision was reversed by DOT in 2008, and corresponding loss to the Govt. exchequer.

During monitoring of the 2G Spectrum Scam Case, Hon'ble Supreme Court of India vide order dated 16.12.2010 directed CBI to investigate the irregularities committed in the grant of licenses from 2001 to 2007 with particular emphasis on the loss caused to the public exchequer and corresponding gain to the licensees/service providers. Accordingly, in compliance to the said order, a Preliminary Enquiry was registered by CBI in January 2011.

Searches are being conducted today at the premises of the accused persons and companies at five locations (Four in NCR area and One in Mumbai).

Further Investigation of the case is in progress.