THE MEGA Rs 23,000 crore 4G SCAM BY the GOVERNMENT AND RELIANCE

AAP alleged another scam
After the 2G spectrum allocation scam during the former UPA government, another major telecom scandal in the allocation of 4G spectrum (Broadband and Wireless Access - BWA) ) has now been exposed in its latest report submitted by the Comptroller & Auditor General (CAG) to the central government.

According to the information available so far, this scam has caused a loss of around Rs 23,000 crore to the public exchequer in the initial estimates and this amount will definitely go up in case a thorough and impartial probe is ordered by the Narendra Modi government.

The Aam Aadmi Party demands that the BJP-led NDA's central  government should  immediately cancel the telecom license and allotment of 4G spectrum given to Reliance Industries and also order a CBI probe for a through criminal investigation into this scam involving Reliance Industries and the UPA government.

If the NDA government delays tabling of the CAG report on the 4G spectrum & BWA allocation scam and does not cancel its allotment, it will become clear that this government also is favouring corporates and allowing them to loot national resources.

The details of this scam are as follows:
The UPA government in March 2013 allowed a back-door entry of Reliance Jio Infocomm into voice telephony in violation of the judgment of the Supreme Court in the 2G case. This was done at the price discovered in 2001 of Rs 1,658 crore for a pan-India licence, which is the same price that was struck down by the Supreme Court in its 2G judgment, because that had caused a huge loss to the public exchequer.

During May-June 2010 the auctions for 3G and 4G were concluded. The 3G auction fetched Rs 16,750.58 crore for 5+5 MHz spectrum in 2100 MHz (or 2.1 GHz) band. Thus, per MHz, the price worked out to be Rs 1,675 crore. Immediately, after the 3G auction, the 4G auction began which fetched Rs 12,847.77 crore for 20 MHz pan-India license in the 2300 MHz (or 2.3 GHz) band. This works out to be Rs 642.39 crore per MHz.

This was so because all documents stated that 4G spectrum was for data services only, whereas 3G spectrum can be used for both data and voice telephony. (All relevant documents - including the CAG report, Reliance Jio Infocomm reply and Department of Telecom response are attached with this press release).

Infotel Broadband Services Pvt Ltd (IBSPL) emerged as the only company to have acquired pan-India 4G spectrum. IBSPL had an internet license since November 2007 and had just one subscriber with revenue of Rs 16.28 lakhs during 2009-10, and its authorized share capital was Rs three crore and the paid up capital was Rs 2.51 crore. Infotel Digicomm Pvt Ltd (IDPL) held 99.99% share of the IBSPL at the time of submission of application in March 2010.

Within hours of completion of 4G auction on 11.06.2010, IBSPL increased the authorised share capital from Rs three crore to Rs 6,000 crore. On 17.06.2010, the company authorized its Board of Directors to allot Rs 475 crore equity share of Rs 10 each to Reliance Industries Ltd (RIL) and 25 crore equity share of Rs 10 to Infotech Digicomm Pvt Ltd (IDPL) aggregating to the equity capital of Rs 5,000 crore. On the same day, the company also decided to change from a private company to Public Limited Company (Infotel Broadband Services Ltd). Thus, the company within a week of winning the 4G spectrum disposed off 95% shares to RIL while 5% was retained by IDPL. Much later in March 2013, the company was renamed as Reliance Jio Infocomm Pvt Ltd.

CAG has found that the Government did not protect its interest at the time of framing eligibility criteria for the 4G auction. It allowed participation of internet (ISP) licensees without ensuring adequate safeguards in terms of net-worth of the companies participating in the auction. It found that while a UAS licensee or even a new company without a license was allowed to participate in the 4G auction, but
they had to pass through the test of net-worth in order to become eligible, but no such criteria was specified for the existing internet (ISP) licensees participating in 4G auction. CAG observed that this criterion was important even for ISP-A licensees as they had to participate in the bidding where the reserve price was fixed at Rs 1,750 crore per pan-India license for 20 MHz spectrum in 2.3 GHz band.

The only company which won the pan-India 4G license, was an ISP-A licensee, Infotel Broadband Services Pvt Ltd (IBSPL), a HFCL promoted group company. CAG has stated that IBSPL was given the ISP-A license in November 2007, and it had just one leased-line subscribers as on December 2009 and total revenue of just Rs 16.28 lakh for FY 2009-10. The paid-up capital was just Rs 2.51 crore and 99.99 per cent of it was held by Infotel Digicom Pvt Ltd at the time of submission of application for the 4G auction in March 2010. Thus, this company could not be termed as a serious player. And there were no checks in-built in the auction process to eliminate such non-serious players, CAG has observed.

After the company was taken over Reliance Industries, the government allowed it to provide voice telephony (which was earlier prohibited) without conducting a fresh auction. This was done at the rate of Rs 1,658 crore which was fixed in 2001, and had been struck down by the Supreme Court in the 2G case for causing huge loss to public exchequer. The CAG has now concluded that besides vitiating the auction process, an undue advantage of Rs 22,842 crore was given to RIL at the cost of exchequer. The relevant part of the CAG’s report is reproduced below: -

It was found that the basis of the decision i.e. payment of entry fee of Rs 1,658 crore by ISP licensee for a permission to Pan India provision of mobile voice services using BWA spectrum considered by the DoT Committee, Telecom Commission and the MOC&IT, was primarily intended to fill the gap between the eligibility criterion stipulated for participation in the 3G / BWA auction in 2010 as UAS / CMTS licensees had paid entry fee of Rs 1,658 crore while ISP licensees had paid only Rs 30 lakh.

The DoT Committee, Telecom Commission and the Ministry of communication &IT  however ignored the fact that the quantum of entry fee i.e. Rs 1,658 crore was basically discovered in 2001 through the bidding for the 4th Cellular licenses. Market conditions since then have changed drastically, and this price needed to be modified to reflect the present value.

Neither the DoT Committee / TC under the Chairmanship of the Secretary DoT nor the ministry felt the need for revision of the price discovered in 2001 as the entry fee for UASL in 2013, even when the Hon’ble Supreme Court of India had cancelled 122 licenses granted in 2008 on the basis of the same entry fee stating that it was impossible for them to approve the action of the DoT.

Therefore, by permitting ISPs to provide mobile voice service using BWA spectrum won in 2010 auction post-auction, the government has brought ISP licensees with BWA spectrum at par with UAS / CMTS 3G spectrum winners so far as provision of services are concerned – Voice, Data, etc., and post auction interpretation of such vital nature would appear to be arbitrary, inconsistent and not appropriate.

Hence, IBSPL, now Reliance JioInfocomm, appeared to have been accorded undue advantage of Rs 22,842 crore i.e. the difference of the proportionate prices for 20 MHz block size in 2.1 GHz spectrum band (3G spectrum) and 2.3 GHz spectrum band (BWA spectrum) plus the Net Present Value of the entry fee for UASL at the end of FY 2009-10 (Rs 20,653 crore plus Rs 3,847 crore - Rs 1,658 crore). Besides, the sanctity of the entire auction process has been rendered vitiated due to post auction interpretations and interventions after three years. It was therefore no surprise that Reliance JioInfocomm was among the first group of companies which applied for UL immediately after introduction of the scheme and obtained the Letter of Intent (LoI).

Had the spectrum blocks been specified and declared as liberalised spectrum blocks i.e. open for all technology / services in the NIA in February 2010, there was no doubt that bidders would have taken informed decision for putting up their bid and the market discovered price would have been significantly different for 3G and BWA spectrum.

AAP leader and senior lawyer Prashant Bhushan has filed a PIL in the Supreme Court seeking cancellation of Reliance Industries’ telecom license and a through criminal investigation. Supreme Court had issued notice to the government and Reliance on that petition on 9th May 2014.
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Sent By AAP on Mails Dated 01.07.2014

RIL used KG Basin for money laundering: AAP

Allegations False And Defamatory, Says Reliance
New Delhi:Continuing its offensive against industrialist Mukesh Ambani, the Aam Aadmi Party (AAP) on Thursday charged the UPA with turning a blind eye while his company — Reliance Industries — allegedly indulged in money laundering and goldplating profits acquired through the KG Basin gas project.

AAP leader and senior Supreme Court lawyer Prashant Bhushan also claimed that Union oil minister Veerappa Moily was in “Ambani’s pocket” and was pliable to do his bidding. He alleged that Moily had, in fact, continued to demand the extension of a “tainted” officer as chairperson of ONGC despite negative vigilance reports.

Elaborating on the “money-laundering” charge, Bhushan said the government had chosen to ignore a letter written by its high commission in Singapore in August 2011, pointing out that Rs 6530 crore had come to India from BioMetrix Marketing Ltd, a one-room company in Singapore that did not do any business. The asset-less company was responsible for the single biggest FDI in India and the money had been invested in Reliance group of companies, including Reliance Gas Transportation which is 100% owned by Ambani, he alleged.

The Commission’s letter also pointed out that the owner of BioMetrix was Atul Shanti Kumar Dayal. Bhushan said Dayal was a “front” for Reliance since he was a director in several of its companies.

In a statement, Reliance Industries said the allegations were “highly defamatory, false, irresponsible and devoid of any merit or substance whatsoever. These false allegations have been repeatedly made and their regurgitation in the media is fuelling an orchestrated, politically-motivated campaign against us”.

The party also accused Moily of seeking an extension for ONGC chairman Sudhir Vasudeva, who is to retire on Friday, and claimed he was appointed by the government despite the Central Vigilance Commission (CVC) rejecting his clearance twice.

“CVC had pointed out that apetition relating to KG basin was pending in the high court and that the CVC itself had sought a report from the ministry on these issues,” Bhushan said.

“But Moily overruled the CVC and sought to give him (Vasudeva) an extension against the said recommendation without a vigilance clearance,” he said.
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BJP to back SC-ordered probe of Ambani, gas price

New Delhi:BJP is in favour of a criminal investigation against Reliance chief Mukesh Ambani and the issue of gas pricing if the Supreme Court orders it. Senior party leader and leader of opposition in Rajya Sabha Arun Jaitley has said he would be happy if the apex court orders a criminal investigation into the matter but he does not support the way Aam Aadmi Party has moved on the issue as it threatens to break down the constitutional structure in the country.

Jaitley also refuted charges that the BJP had maintained silence on the issue saying the party had officially said that the process of gas pricing was not transparent and a Yashwant Sinha-led parliamentary committee had even recommended its re-examination.

Jaitley said, “I will be very happy if court (the SC where two PILs on the issue are pending) orders a criminal investigation into it. But this process that we will break down the constitutional and organizational structures... you will get cheap publicity but not be able to govern in the long run.”

Before demitting office, Delhi CM Arvind Kejriwal ordered registration of an FIR by the anti-corruption branch on the issue of doubling of gas prices in the country. The FIR named Ambani and petroleum minister Veerappa Moily as accused among others.

Attacking AAP’s way of governance and politics, Jaitley said, “They first create an imaginary issue... an imaginary villain and then attack it. This is their politics.” Jaitley spoke on the issue during a discussion on a TV channel.

Jaitley recalled that the BJP has officially said that the process of gas pricing was not transparent. “Yashwant Sinha was the chairman of the parliamentary committee on finance. The committee had recommended to the government that these prices be fixed again and re-examined. The right way to go about the issue is to go to court or discuss in Parliament,” Jaitley said, adding that CPI leader Gurudas Dasgupta had already filed a PIL on the issue in the SC.

Mocking the AAP move, he asked, “Should the Rajasthan government say that because Prime Minister has allocated coal blocks so police should summon the PM. The country has to run but not by anarchy.”

Jaitley, however, conceded that Kejriwal had the strength of honesty with him. Answering a specific question on the issue, Jaitley said, “Anyone who does politics of honesty obviously has some sort of strength with him. But being honest is the bare minimum for politics, it’s not the whole and sole political system within itself.”

Manmohan led India’s most corrupt govt: 
Advani New Delhi: Veteran BJP leader L K Advani has said that Prime Minister Manmohan Singh has presided over the most corrupt government in independent India. Launching an attack on the UPA government, the senior BJP leader and former deputy prime minister in the NDA government said the decade-long rule of the Congress had driven Parliament to an all-time low.

“Manmohan Singh began his tenure with a clean personal reputation. But as his decade-long tenure is coming to a close, he would leave behind a record of having presided over the most corrupt government in independent India,” Advani said in his latest blog. Advani said the UPA government has driven Parliament to an “all-time low”. TNN
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AAP gets powerful boost as whistleblower of Rs 70,000 cr irrigation scam joins party

The honest bureaucrat and expert on irrigation, Vijay Pandhare had exposed exactly how the scam was perpetrated.

Nagpur News: The Aam Aadmi Party (AAP) in Maharashtra received a powerful boost and a shot in the arm when the Irrigation Officer and whistleblower of the 70,000 crore Irrigation Scam in Maharashtra Vijay Pandhare joined the party today in Nashik. He addressed a joint press conference with AAP leaders Anjali Damania and Sanjiv Sane to announce this decision at 1 pm on December 1 at Hotel Samrat in Nashik.

The AAP Maharashtra Convener Anjali Damania had blown the lid off the irrigation scam in which thousands of crores were spent on meaningless projects just to benefit crony capitalism. Government attempts to sweep the scam under the carpet were blown away when the honest and expert on irrigation, Vijay Pandhare exposed exactly how the scam was perpetrated. A bureaucrat himself, he was undeterred by the thought of repercussions from his political bosses and set a sterling example before the nation.
Saturday was his last day in service and today he has decided to enter the cesspool of politics to clean the muck that has ruined the country. Under his leadership AAP will pursue the perpetrators of the irrigation scam and strive to get every rupee back.

“We also welcome all bureaucrats who have tried their best to serve the nation despite the stranglehold of corrupt politicians, to take this fight to the public – to join AAP, contest elections and bring about the political revolution that is so critical to change the system,” the party Convener Anjali Damania said.
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Published On: Mon, Dec 2nd, 2013
News Today | By Nagpur Today
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Kejriwal’s party targets Bhujbals over Mhada land :

NCP Minister’s Family Denies Any Irregularity

Mumbai: In a veiled attack on PWD minister Chhagan Bhujbal, the Aam Aadmi Party (AAP) headed by social activist Arvind Kejriwal on Saturday alleged that the Maharashtra Housing and Area Development Authority (Mhada) lost prime land worth a few crores after it failed to stop Bhavesh Builders Pvt Ltd from constructing a commercial complex on a 802 sq-m plot meant for residential use in 2003. Bhujbal’s son Pankaj and nephew Samir were directors of Bhavesh Builders from October 3, 1994 till September 7, 2009 as per company details available on the ministry of corporate affairs’ website.

“This public land was given by Mhada at a throwaway price. It seems land grabbing is easy if you are a minister in the state cabinet. You can get land allocated and change land use blatantly without any accountability,’’ the AAP said in a statement.

Samir denied any irregularity in the deal. “I have not sold any premises in the commercial complex. I do not remember the details of this deal as it is over five years old. I was just appointed as a contractor by Tulsi co-operative housing society to construct the commercial building. If the plot was for residential use, then I assume the society would have got Mhada’s permission to convert it to commercial,’’ he said.

Mhada vice president Satish Gavai said he would have to look into the issue. Niranjan K Sudhanshu, chief officer of Mhada’s Mumbai board, told TOI that the authority had sent a notice of recovery for Rs 1.94 crore to Tulsi on November 3, 2012 for changing the land use from residential to commercial. “The land was given to Tulsi for residential purpose. The residential use was then allowed to be changed to commercial in February 2005. There is no agreement between the said developer and Mhada,” said Sudhanshu.

The case dates back to 2001 when it was proposed to form a co-operative housing society named Tulsi. The society applied to Mhada for a residential plot next to the police station in Oshiwara to construct residential houses for its members.

In October 2002, Mhada allotted the 0plot to Tulsi for the purpose of residential use. In May 2003, Mhada and Tulsi registered the lease agreement. In February 2003, Tulsi entered into a development agreement with Bhavesh Builders, giving them the complete right to develop and dispose of the property in any way they deem fit.

The building that came up on the plot was not residential, but a commercial complex, Platinum Court. “This commercial property is worth more than Rs 200 crore and does not have a single original member of Tulsi. We believe the premises has reportedly been sold by Bhavesh Builders,” the AAP claimed.

The deal, said the AAP, has raised many questions. “On what grounds did Mhada give the prime plot to Tulsi? Why did the society give all the rights of the property to a developer for no consideration, which begs the question if Tulsi was just a front for the builder to get land at a throwaway price from Mhada,” asked AAP volunteer Sanjay Parmar, who has gleamed some of the records under the RTI Act.

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