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2G Spectrum Scam has costed Indian Rs. 1,760,000,000,000 (1.76 Lac Cr.)
PM & Home minister PC to involved in 2G scam - Raja says in court
Says FM Cleared Sale Of Stake By Telcos In Singh’s Presence
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New Delhi: Jailed former telecom minister A Raja on Monday sought to drag Prime Minister Manmohan Singh and home minister P Chidambaram into the political-legal quagmire of the spectrum scam, saying they were party to the decision to allow telecom firms that got 2G licences to sell equity for large profits.
“Telenor buying a stake in Unitech Wireless and Etisalat buying a stake in Swan Telecom—the then finance minister (Chidambaram) approved it in the presence of the Prime
Minister,” Raja’s counsel Sushil Kumar told special CBI judge O P Saini, creating a flutter in court and providing the main opposition BJP a fresh opportunity to attack the government.
Arguing for Raja’s release on bail, Kumar said if he were to be held guilty so should all his predecessors in the telecom ministry. He also accused the CBI of being selective in prosecuting telecom companies in connection with the scam, saying that while Unitech and Swan were targeted for selling their equity, Tata Teleservices and S-Tel, which also did the same, had been spared.
“The matter (about sale of equity by spectrum licensees) was discussed between prime minister and the then finance minister (P Chidambaram). The then finance minister who is now home minister had said in front of the prime minister that dilution of shares does not amount to sale of 2G licence as per corporate law,” Raja said.
“When sale of equity does not amount to sale of licence there is no question of earning profit. How then can there be corruption in this regard?” Kumar argued as he pleaded for Raja’s release on bail. Later, the government argued that manipulation of licence allocation, not sale of equity, was at the centre of the CBI’s probe.
The telecom companies’ success in mopping up thousands of crores by offering fresh equity for licences and spectrum they got from Raja for around Rs 1,600 crore forms the basis of the charge that the scam caused a huge loss of revenue to the government. It is also the main ground on which the CAG and the CBI had based their estimates of actual value of spectrum. Swan and Unitech between them raised Rs 7,100 crore for Uninor and Etisalat respectively in exchange for fresh equity.
‘If I’m wrong, all ex-telecom ministers must also be jailed’
The burden of Raja’s argument in the court on Monday was that he was merely implementing a policy that was found to be kosher by both the PM and Chidambaram. The reference to the role of the PM and finance minister had been anticipated, with clear indications that Raja would ramp up his defence. The BJP, again predictably, jumped on the opportunity, with Nitin Gadkari alleging that the government was involved in the scam.
Raja said he “only inherited and didn’t create policy”, pointing out that his predecessors, including those from the NDA government, didn’t auction spectrum. “If the policy pursued by me was wrong, then all former telecom ministers since 1993 should also be in jail with me,” he said, opposing the framing of charges. “Arun Shourie distributed 26 licences while Dayanidhi Maran distributed 25 and I (Raja) distributed 122 licences. It is to be noted that none of them auctioned spectrum,” he said. He said: “If I am following the law; I am not liable to be prosecuted. In fact, I should be rewarded.”Alleging that the CBI had engaged in a “pick-and-choose policy”, Raja questioned the logic behind booking certain corporates while leaving out others. “The CBI says when DB Realty gave its shares (in Swan Telecom), it amounted to sale and so is the case with Unitech (Wireless). But when Tata Teleservices give its shares to bring in FDI, it does not amount to sale.”
Raja’s counsel asked, “Who is a better businessman—Sanjay Chandra of Unitech or Ratan Tata of Tata Teleservices? And then they say we kept them (Tata) out of Delhi circle.” He also pointed out, “STel also earned Rs 2,230 crore by diluting its shares but that was not considered as sale by the CBI.”
“How could you give my custody to CBI for my further interrogation regarding Loop which was given 21 licences in the same batch as the other coaccused (Swan Telecom and Unitech Wireless).”
The then FM (finance minister P chidambaram) had told the PM
that dilution of shares did not
amount to sale of 2G licence. When sale of equity does not amount to sale of licence, there is no question of earning profit. How then can there be corruption? As per CBI’s pickand-choose policy, when DB Realty gave its shares (in Swan) to bring in money, it meant a sale. Ditto with Unitech. But when Tata Teleservices gave its shares to bring in FDI, it didn’t amount to a sale —EX-TELECOM MINISTER A RAJA’S DEFENCE
PM & Home minister PC to involved in 2G scam - Raja says in court
Says FM Cleared Sale Of Stake By Telcos In Singh’s Presence
######
New Delhi: Jailed former telecom minister A Raja on Monday sought to drag Prime Minister Manmohan Singh and home minister P Chidambaram into the political-legal quagmire of the spectrum scam, saying they were party to the decision to allow telecom firms that got 2G licences to sell equity for large profits.
“Telenor buying a stake in Unitech Wireless and Etisalat buying a stake in Swan Telecom—the then finance minister (Chidambaram) approved it in the presence of the Prime
Minister,” Raja’s counsel Sushil Kumar told special CBI judge O P Saini, creating a flutter in court and providing the main opposition BJP a fresh opportunity to attack the government.
Arguing for Raja’s release on bail, Kumar said if he were to be held guilty so should all his predecessors in the telecom ministry. He also accused the CBI of being selective in prosecuting telecom companies in connection with the scam, saying that while Unitech and Swan were targeted for selling their equity, Tata Teleservices and S-Tel, which also did the same, had been spared.
“The matter (about sale of equity by spectrum licensees) was discussed between prime minister and the then finance minister (P Chidambaram). The then finance minister who is now home minister had said in front of the prime minister that dilution of shares does not amount to sale of 2G licence as per corporate law,” Raja said.
“When sale of equity does not amount to sale of licence there is no question of earning profit. How then can there be corruption in this regard?” Kumar argued as he pleaded for Raja’s release on bail. Later, the government argued that manipulation of licence allocation, not sale of equity, was at the centre of the CBI’s probe.
The telecom companies’ success in mopping up thousands of crores by offering fresh equity for licences and spectrum they got from Raja for around Rs 1,600 crore forms the basis of the charge that the scam caused a huge loss of revenue to the government. It is also the main ground on which the CAG and the CBI had based their estimates of actual value of spectrum. Swan and Unitech between them raised Rs 7,100 crore for Uninor and Etisalat respectively in exchange for fresh equity.
‘If I’m wrong, all ex-telecom ministers must also be jailed’
The burden of Raja’s argument in the court on Monday was that he was merely implementing a policy that was found to be kosher by both the PM and Chidambaram. The reference to the role of the PM and finance minister had been anticipated, with clear indications that Raja would ramp up his defence. The BJP, again predictably, jumped on the opportunity, with Nitin Gadkari alleging that the government was involved in the scam.
Raja said he “only inherited and didn’t create policy”, pointing out that his predecessors, including those from the NDA government, didn’t auction spectrum. “If the policy pursued by me was wrong, then all former telecom ministers since 1993 should also be in jail with me,” he said, opposing the framing of charges. “Arun Shourie distributed 26 licences while Dayanidhi Maran distributed 25 and I (Raja) distributed 122 licences. It is to be noted that none of them auctioned spectrum,” he said. He said: “If I am following the law; I am not liable to be prosecuted. In fact, I should be rewarded.”Alleging that the CBI had engaged in a “pick-and-choose policy”, Raja questioned the logic behind booking certain corporates while leaving out others. “The CBI says when DB Realty gave its shares (in Swan Telecom), it amounted to sale and so is the case with Unitech (Wireless). But when Tata Teleservices give its shares to bring in FDI, it does not amount to sale.”
Raja’s counsel asked, “Who is a better businessman—Sanjay Chandra of Unitech or Ratan Tata of Tata Teleservices? And then they say we kept them (Tata) out of Delhi circle.” He also pointed out, “STel also earned Rs 2,230 crore by diluting its shares but that was not considered as sale by the CBI.”
“How could you give my custody to CBI for my further interrogation regarding Loop which was given 21 licences in the same batch as the other coaccused (Swan Telecom and Unitech Wireless).”
The then FM (finance minister P chidambaram) had told the PM
that dilution of shares did not
amount to sale of 2G licence. When sale of equity does not amount to sale of licence, there is no question of earning profit. How then can there be corruption? As per CBI’s pickand-choose policy, when DB Realty gave its shares (in Swan) to bring in money, it meant a sale. Ditto with Unitech. But when Tata Teleservices gave its shares to bring in FDI, it didn’t amount to a sale —EX-TELECOM MINISTER A RAJA’S DEFENCE
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