RBI governor D Subbarao is standing between the CBI and Union home minister P Chidambaram in the investigation into the 2G spectrum scam.
RBI governor D Subbarao is standing between the CBI and Union home minister P Chidambaram in the investigation into the 2G spectrum scam.
Subbarao, who was the finance secretary during Chidambaram’s stint as finance minister when the decision on spectrum allocation was taken, has defended himself and the ministry of finance in his testimony before the CBI.
However, while deposing before the Public Account Committee probing the 2G spectrum allocation, Subbarao admitted a “lapse” on the part of his ministry and that “due diligence” was not applied.
While arguing on any action against Chidambaram, the CBI claims it had thoroughly examined the files of the finance ministry. “We checked all the records and files of the finance ministry relating to the period when the decision of spectrum pricing was taken. We could not find anything against the ministry. Moreover, we had examined Subbarao. There was not even a single document that indicated the ministry’s complicity,” a senior CBI official said.
The agency maintained that in any ministry, the secretary takes decisions or is involved in the important decisions.
Interestingly, Subbarao admitted before the PAC, headed by Murli Manohar Joshi, that “due diligence” was not applied by his ministry on the issue of spectrum pricing.
When the PAC asked him whether it was prudent to ignore such great source of revenue, Subbarao replied: “I think it would be incorrect and inappropriate to say that we had ignored the issue. But I agree that we had not reduced all that was taking place in oral communication into writing. That certainly was a lapse.”
Asked if the matter was brought to the notice of cabinet secretary or finance minister, he said: “‘I do not recall having said specifically that we should go back to the Cabinet… that I can’t really say without seeing the file. But I should have briefed the minister about the on-going discussions.”
Quoting from a communication of his predecessor Ashok Jha, Subbarao told the committee that his predecessor Ashok Jha wrote to the DoT secretary requesting inclusion of the spectrum pricing issue in the terms of references of the GoM. But the DoT turned down the request. In
November 2007, Subbarao also wrote to the DoT secretary on similar lines, but the DoT did not agree.
When the PAC asked Subbarao what happened after the November 2007 communication, his said: “May be there was no exchange of correspondence, but there were certainly discussions going on between the secretary (telecom) and myself on these issues.”
Asked to furnish evidence of such discussions, he said: “Sir, there may not be a paper trail, but there was certainly discussions going on. Sir, as you know — you have been a minister — in the government, not everything is on paper or reduced to writing. Maybe there was some note file endorsements, but I cannot recall them because the note file is not here.”
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