2G scam: JPC asks probe agencies to submit status reports

New Delhi, Sep 13 (PTI) All agencies probing the 2G scam
have been asked by the Indian Joint Parliamentary Committee
(JPC) examining telecom policies to inform it about the
progress in the investigation into the alleged irregularities
in spectrum allocations.
"Investigating agencies will be asked to come before the
committee to inform about the progress made by them in the 2G
scam probe periodically," JPC Chairman P C Chacko told
reporters here.
The Central Bureau of Investigation (CBI), Enforcement
Directorate and Central Board for Direct Taxes (CBDT) are
probing various aspects of the alleged irregularities in the
2G spectrum allocation. The probe is being monitored by the
Supreme Court.
The CBDT made a presentation before the JPC on the status
of its investigation last week and now the CBI will be asked
to update the Committee on the progress it has made in the 2G
scam probe.
"We want to know first hand on the progress in the
investigation from the agencies," Chacko said.
The JPC Tuesday recorded the evidence of former Telecom
Secretary Shyamal Ghosh during whose tenure the now infamous
'first come first serve' policy was followed for allocation of
Wireless in Local Loop (WLL) licenses.
Many telecom operators violated the guidelines for WLL by
introducing roaming facilities beyond the short distance
charging area (SDCA), Ghosh told the JPC.
Ghosh said WLL was introduced to make mobile services
affordable and had helped in decreasing mobile tariffs.
"Yes," replied Chacko to a question whether Reliance and
Tatas were prime beneficiaries of the WLL services.
Chacko said the Telecom Ministry had also shown "tearing
hurry" in allocation of excess spectrum in 2002 by skirting
the usual route.
He said the proposal for additional allocation of
spectrum was submitted by Deputy Director General (Value Added
Services) to Ghosh, who was then the Telecom Secretary and was
approved by the then Telecom Minister. Pramod Mahajan was in
charge of the portfolio then.
Chacko said the proposal was moved and approved on the
same day -- January 31, 2002.
When asked about this, Ghosh told the JPC that it was
part of the process and the measure was necessary because of
network congestion in metros which was leading to call drops.
"He (Ghosh) said the step was taken following a request
from the service providers," Chacko said.
He also indicated irregularities in awarding the WLL
licenses as guidelines.
"There has been lack of transparency so we are examining
the past," he said.
Chacko said that 25 basic service licenses (BSL) were
awarded in 2001 -- 17 to Reliance and four each to Tata and
Bharti.
He said that 147 applications were received for BSL in
2001 and the files related to rejection of requests were not
traceable.
He added that Reliance and Tata had used "dubious
methods" to introduce indirect roaming by using a different
phone instrument. They were fined for the violation of
guidelines, Chacko said.