Spectrum Scam: CBI charges telcos, ex-telecom secy in ’02

CBI Says Favours To Voda, Airtel Led To 846Cr Loss
New Delhi: Nearly two years after the CBI began probing spectrum allocation during the NDA regime, the agency on Friday filed a chargesheet in a case of corruption against telecom firms Airtel and Vodafone and ex-telecom secretary Shyamal Ghosh. The chargesheet claimed the allocation of airwaves during late BJP leader Pramod Mahajan’s term as communications minister had caused a loss of Rs 846 crore.

The CBI estimate is 66% higher than the Rs 508-crore loss mentioned in the FIR and the agency’s report to the JPC on telecom issues, including the 2G scam. The CBI said Ghosh, with Mahajan and the telecom firms, had abused his position to show undue favours to the companies, causing a loss of Rs 846.44 crore.

CBI’S CLAIMS
Then telecom secy Shyamal Ghosh, in conspiracy with Pramod Mahajan and telecom firms, gave undue favours to Airtel & Vodafone, causing a loss of 846cr

Ghosh ‘deliberately’ did not obtain comments of then member (finance) of DoT despite huge financial implications

SPECTRUMPED 
CBI chargesheet gives clean chit to telco promoters
New Delhi: The CBI, in its chargesheet on spectrum allocation, has said former NDA minister Pramod Mahajan, former telecom secretary Shyamal Ghosh and telecom firms had colluded to cause a loss of Rs 846 crore to the exchequer. It said that there was an undue gain to telecom companies, including incidental benefit to other telecom firms, by charging an additional 1% of AGR (adjusted gross revenues) instead of charging the required additional 2% AGR for allocation of additional spectrum from 6.2 Mhz to 10 Mhz.

The chargesheet, accessed by TOI, added that former telecom secretary “Shyamal Ghosh ‘deliberately’ and with ‘mala fide intention’ did not obtain the comments of then member (finance) of DoT despite the issue involving huge financial implications. The wireless advisor, who was the custodian of the entire spectrum, was also intentionally bypassed on flimsy grounds that he was retiring on that very day i.e. on January 31, 2002”.

In defence, Ghosh reportedly told the JPC that the issue of allocating spectrum was pending since 2000 and he could not, contrary to what CBI the has said, be accused of delaying the decision.

On the charge that the decision was rushed through in a single day, Ghosh reportedly said it was based on information developed over more than a year. Telecom regulator Trai had said that it would consider additional licences only if problems of existing operators were addressed.

Ghosh also argued that the extension of revenue sharing set at 2% for additional 5Mhz would be 4% for additional 10Mhz. The CBI named three telecom firms—Bharti Cellular Ltd, Hutchison Max Pvt Ltd (now Vodafone India Ltd) and Sterling Cellular Ltd (now Vodafone Mobile Service Ltd) —as accused.

Ghosh and the firms have been accused of criminal conspiracy and violating provisions of the Prevention of Corruption Act. Although the agency named the firms in the chargesheet, it said it could not find anything against their promoters. The agency accused Mahajan of conspiring with Ghosh to benefit the private players, but said no action was proposed as he is dead. Jagdish Rai Gupta, who was then deputy director general in-charge of value added services, has been made an approver in the case.
Courtesy:
Neeraj Chauhan & Abhinav Garg TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2012/12/22&PageLabel=3&EntityId=Ar00303&ViewMode=HTML

Spectrum Scam: Pramod Mahajan, Ghosh tailored norms to suit Airtel, Vodafone: CBI chargesheet

NEW DELHI: The chargesheet filed by CBI on Friday has alleged that there was a conspiracy between the late Pramod Mahajan and Shyamal Ghosh, under which a new post was created by the then minister for the bureaucrat, bending all rules, which was approved by the then prime minister the very same day.

It also gives details on requirement of eligible subscribers' base of telecom companies, which was allegedly tailored to benefit private players. In fact, Airtel had reached its subscribers base of four lakh customers for actual allocation on January 31, 2002, the day the decision was taken by Mahajan.

According to the chargesheet, Mahajan created the post of administrator USOF (Universal Service Obligation Fund) on June 1, 2002, the day Ghosh was to retire. "Pramod Mahajan initiated a note on May 30, 2002, on his own for creating a post of administrator USOF for re-employment of Shyamal Ghosh from June 1, 2002 (the day of his retirement). Mahajan sent his letter to prime minister who approved it on same day. Then, it was approved by the Appointments Committee of Cabinet (ACC)," the chargesheet said.

This way, Ghosh was given a further three-year tenure from June 1, 2002 to May 31, 2005, according to the chargesheet.

"Investigation has, thus, revealed that in case of appointment of Shyamal Ghosh as administrator USOF, the proposal was accepted by then prime minister on strong recommendation of Pramod Mahajan. The post was created on May 30, 2002 with Shyamal Ghosh as USOF administrator as a result of efforts of Pramod Mahajan," the chargesheet said.

The ACC woke up to the situation only in 2004. "After much consideration and deliberation, ACC conveyed to department of telecom (DoT) through a letter on October 6, 2004 directing for fresh recruitment procedure for the same post," the chargesheet said.

"Subsequently, the post for appointment of administrator USOF was downgraded from the post of secretary to additional secretary under the central staffing scheme after the tenure of Shyamal Ghosh. Since then, additional secretary rank officers are being appointed as administrator USOF under the central staffing scheme. No retired officer can be appointed as administrator USOF," the CBI said.

About the tailoring the norms for private companies by Ghosh and Mahajan, the chargesheet said, "Investigation has revealed that while the technical committee of DoT had recommended to allot additional spectrum beyond 6.2 MHz+6.2 MHz only after the operator reached subscribers base of 9 lakh, the requirement for subscribers base was intentionally reduced by accused public servants to 4 lakh for applying for additional spectrum and 5 lakh for actual allocation of spectrum, in order to extend wrongful benefit to Bharti, Hutchison and Sterling as Bharti had reached the subscribers base of 4 lakh on December 31, 2001 and of 5 lakh on January 31, 2002 i.e on the day said decision was taken and the aforesaid two companies had also already crossed the subscribers base of 4 lakh."
Courtesy:
Neeraj Chauhan, TNN Dec 22, 2012, 03.29AM IST
http://articles.timesofindia.indiatimes.com/2012-12-22/india/35968992_1_subscribers-base-chargesheet-shyamal-ghosh