With the shifting out of RK Chandolia, economic adviser in the ministry of telecommunications, the government has begun ridding the ministry of people linked to the 2G (second generation) spectrum scandal and associated with former telecommunications minister A Raja.
Sources say the origins of the 2G spectrum scam can be traced back to the days when Raja and Chandolia together ruled over the environment ministry. Companies across sectors, including real estate majors, had approached the environment ministry seeking clearances for their projects.
This “close association” between the companies and Raja continued even after Raja was made minister of communications and information technology. Many of these companies benefited from the allocation of 2G spectrum in 2007-08, including firms that then had no presence in telecom.
The sources said that Chandolia, who was transferred out on Friday, had a significant role to play in how the 2G licences were given out to companies around three years ago even as he helped a chosen few to jump the queue. Pan-India 2G licence, along with start-up spectrum, was given out in 2007-08 to companies on a first-come, first-served basis at a cost of Rs1651 crore, rather than auctioning the highly valued spectrum.
Moreover, the telecommunications ministry announced a cut-off date of October 1, 2007, for receiving applications, but subsequently advanced it to September 25, 2007. Chandolia was the points-person for the 2G applications then, armed with power to make things happen for a chosen few. “Long-standing friends” from the environment ministry were taken care of, say the sources.
Chandolia, a 1984 batch Indian Economic Service (IES) officer, was a director in the environment ministry when he first met Raja.
This was in 2004, when Raja was appointed environment minister after the UPA came to power. Raja soon promoted Chandolia, making him a personal secretary (PS).
When Raja was shifted to telecom ministry in May 2007, he took Chandolia along as his PS. Chandolia was promoted to joint secretary and later made economic advisor in the Department of Telecommunications (DoT).
An official said that appointing Chandolia as economic advisor after he had served as the PS to the minister was a violation of the rules governing personnel. It now appears that he was made economic advisor after objections were raised over his role in the 2G spectrum allocation.
Though an economic advisor, he had the power take a call on key appointments in the state-owned firms Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL). Moreover, Chandolia was reporting to the DoT secretary, thus jumping the organisational structure.
The road ahead for Chandolia appears bumpy. As of now, he has been shifted to the finance ministry but given the heat on unearthing the spectrum scam, his role remains unclear.
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