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Probe S-Tel licence restoration: Court

The home ministry had questioned the department of telecommunication and the finance ministry regarding the foreign direct investment (FDI) made by the company in the telecom sector.

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The Supreme Court (SC) directed CBI on Thursday to probe restoration of 2G spectrum licence to Chennai telecom operator S-Tel. The licence was cancelled on the ground of threat to national security.

SC also asked CBI to investigate antecedents of UAE-based Etisalat and file a report by March 15. The home ministry had questioned the department of telecommunication and the finance ministry regarding the foreign direct investment (FDI) made by the company in the telecom sector.

CBI counsel KK Venugopal, however, said as issues concerning the two firms did not directly relate to 2G spectrum allocation, the agency may take time to complete its probe.

Attorney general Goolam E Vahanvati placed the file relating to spectrum allocation before the apex court. He explained that the allocation was done as per a policy adopted since 1994 which did not envisage auctioning spectrum.

To this, the court said the files submitted by additional solicitor general Indira Jaising “tells about a new dimension which is altogether different”.

According to the comptroller and auditor general, 2G licence allocation by former telecom minister A Raja in 2008 cost the exchequer Rs1.76 lakh-crore. NGO Centre for Public Interest Litigation has sought cancellation of the licences and criminal action against all those who looted the exchequer.

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