2G scam: Finance ministry’s objections were ignored, says RBI chairman

RBI chairman and former finance secretary Subba Rao has reportedly told parliament’s public accounts committee (PAC) that despite his intervention and objections raised in 2007 to allotment of 2G spectrum at a very low rate, then telecommunication ministry authorities went ahead with the plan.

Rao, who deposed before PAC on Thursday, reportedly told the panel that he had written a letter to then telecommunication secretary DS Mathur opposing allotment of spectrum at cheaper and seven-year-old rates which he had described as “totally wrong”.

He had also objected to the telecom ministry going ahead with the allotment process without seeking the finance ministry’s clearance. Cancel the allotments since you have not taken our clearance, Rao had suggested in his letter.

PAC chairman and veteran BJP leader MM Joshi said Rao had “narrated” his part of the story based on his experiences in dealing with the telecommunication ministry. “He has given some valuable and pointed information to the PAC,” Joshi said.

To PAC’s specific question on why did he not object to the allotment process, Rao is learnt to have said the telecommunication ministry headed by A Raja refused to listen to him.

Joshi said Raja’s arrest by CBI will have no bearing on  PAC’s probe into the matter which was based on CAG’s report. “We have nothing to do with what CBI is doing. PAC has its own working procedure defined in the constitution,” he said.