CAG faces PAC today, to explain the mystery of Rs1.76 lakh crore

The comptroller and auditor general of India (CAG), Vinod Rai, will appear before Parliament’s public accounts committee (PAC) on Monday in connection with the CAG report on the 2G spectrum allocation. The accounts watchdog body has pegged the loss of revenue due to arbitrary allocation of 2G licences by former telecom minister A Raja at Rs1.76 lakh crore.

The PAC might seek a satisfactory response from Rai on the procedure adopted to reach at such a mind-boggling figure, sources well-versed with the investigation process said. The size of the sum involved in the alleged scam has led it to be termed the ‘mother of all scandals’.

Only if the PAC - it’s headed by senior BJP leader Murli Manohar Joshi — feels that there’s a strong reason to seek a reply from prime minister Manmohan Singh, then it would respond to his offer to appear before it to answer queries and clear doubts.

The opposition has been demanding a joint parliamentary committee (JPC) probe into the 2G scam and has already rejected the prime minister’s offer to appear before the PAC.
Joshi had taken the decision to summon Rai at the PAC’s last meeting earlier this month.

“Taking into consideration the importance of the subject and the nationwide interest evinced in it, the committee has decided to invite memoranda containing views/suggestions from various individuals, experts, associations, institutions, organisations interested in the subject matter,” the Lok Sabha secretariat said in a notification.

The PAC has been examining the ‘recent developments in the telecom sector including allocation of 2G and 3G spectrum’ since June and has asked for views within the next 15 days. It has already obtained valuable information from the department of telecommunication, finance ministry, the telecom regulatory authority of India (Trai) and experts in the telecom sector through oral deposition and written submission, it is learnt.

In its last meeting, former telecom secretary Siddharth Behura is understood to have told the panel that all decisions related to spectrum allocation were taken by Raja and he only carried out the orders.

In its judgment, the Supreme Court had pointed out that Raja not only ignored the advice given by the finance and law ministries on the spectrum allocation but also had the audacity to tell the prime minister that his suggestion against the ‘first come first served’ practice was arbitrary, against the principle of level playing field and capricious.