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Congress alleges Rs 45,000-crore telecom scam, BJP rubbishes claim

According to Congress, government is taking steps to protect the interests of six leading telecom companies by helping them avoid the payment of charges rightfully owed to the government.

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Congress on Thursday alleged a staggering Rs 45,000-crore telecom scam and that Modi government was "surreptitiously taking steps" to protect the interests of six leading telecom companies which owe the money to the public exchequer. BJP however has rubbished all the claims terming it 'utter bogus'. 

"Latest is a staggering 'Telecom Scam' of approximately Rs.45,000 crore plus that is being buried under the carpet by 'Modi Sarkar'", party's chief spokesman Randeep Surjewala alleged at a joint press conference with party spokespersons Shaktisinh Gohil and RPN Singh. He alleged that the government is "surreptitiously taking steps" to protect the interests of six leading telecom companies by helping them avoid the payment of charges rightfully owed to the government."

He claimed that this is a clear-cut case of loss to the public exchequer verified by the CAG "with the sole aim of helping friendly 'crony capitalists'." The telecom companies named by Surjewala are Bharti Airtel, Vodafone, Reliance, Idea, Tata and Aircel. Replying to a question whether Ravi Shankar Prasad, who was this week shifted to Law and Justice Ministry from Telecom was involved, Surjewala claimed that what has happened in the matter cannot take place "without the direct or indirect concurrence" of the Prime Minister and it would be "improper" to blame any one minister.

The Congress leaders said that the CAG initiated an audit of the six telecom companies for four years from 2006-07 to 2009-10 at the instructions of the Congress-led UPA government. It specifically looked at underreporting of income and non-uniform method of accounting adopted by various telecom companies and consequent lack of obligation to pay outstanding licence fee and Spectrum Usage Charges (SUC). In its report submitted this year, the CAG found an alleged understatement/underreporting of income by the six companies of Rs.46,045.75 crore in the four years.

"Resultantly, the CAG found that there was an amount of Rs.12,488.93 crore, which remains un-recovered by the government. This does not include penalty, if any, and other relevant taxes.", Surjewala said.
He said that although there has been considerable increase in business, consumer base and income, even if loss of exchequer is calculated on the same formula for the years 2010-11 to 2015-16, this figure would be Rs.45,000 crore plus.

"Instead of immediately acting on these shocking and startling revelations reflecting serious loss to public exchequer, Modi government has opted for an alternative re-evaluation of these figures by Telecom Ministry through Chartered Accountants who are empanelled with them", Surjewala said. BJP replied to the allegations with Law Minister Ravi Shankar Prasad, who was Telecom Minister before the reshuffle, calling it "utterly bogus" saying it related to the period when the UPA was in power.

"Congress needs to understand that there is no underreporting case under the NDA government. It is a case of sin of the Congress-led UPA government," Prasad said, insisting that the government will recover all the dues with penalty from these telecom firms. "The entire allegation of Congress party is utterly bogus. It relates to period of between 2006-10. According to CAG reports some telecom companies underreported their revenues. The reports came in March, which I am given to understand, is under the examination of the Public Accounts Committee," he said.

Prasad said the telecom department had sought details of documents from the CAG and received them in June this year.

"After due assessment all the dues shall be recovered with penalty. Telecom service providers are obliged to pay license fee and spectrum usage charges on the revenue earned by them. Any underreported revenue shall be recovered with penalty," he said.

The BJP also attacked the Congress calling it was a case of pot calling the kettle black as the underreporting had happened during the UPA and alleged that Congress spokespersons were putting out "lies" in their briefings. "Such allegations are laughable. It shows the mental bankruptcy of the Congress. No wrong happened under the NDA government and to drag it in a matter that happened under the UPA is a case of pot calling the kettle black.

"Congress should introspect and not behave in an immature, childish way," its national secretary Shrikant Sharma said, calling the party "mother of corruption and misgovernance".  Cong alleges Rs 45,000-crore telecom scam


 

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