New Delhi, November 11
Strongly defending Telecom minister A Raja in the 2G scam case, the Department of Telecommunication (DoT) today informed the Supreme Court that this was not the first time the Comptroller and Auditor General (CAG) had indicted the ministry in connection with spectrum allocation.

“The allotment process in 2007-08 was correct as per law and in keeping with the extant policy and procedures,” the DoT maintained in an affidavit filed in the apex court.

According to CAG, 2G spectrum allocation in 2007-08 at 2001 prices on first-cum-first serve basis instead of taking the auction route has resulted in a loss of Rs 1.7 lakh crore. The DoT said the projected losses were based on “unrealistic calculations” as the government’s thrust was on increasing tele-density in rural areas apart from urban areas.

The DoT said CAG had made similar harsh observations in the past also in the wake of the spectrum allocation. “All decisions relating to the spectrum allocation in 2008 were taken as per government policy followed by all his (Raja’s) predecessors since 1999. “As no finding was given bythe Public Accounts Committee (PAC), the successive governments followed the same policy, including the present Minister A Raja,” the department said.

On the reported remark of CAG that the minister had ignored the advice of Prime Minister Manmohan Singh and law and finance ministries, the affidavit said the two PILs in the SC did not give details of the communication Raja had with the PMO and the two ministries.

“Not only was there no difference of opinion with the Prime Minister, his office was also fully kept informed of all decisions,” it said.

Explaining the reason for not auctioning the spectrum, the DoT said there were a large number of applications -- 557. The total GSM spectrum licences available for sale were far less after security agencies had taken a huge chunk of the spectrum.

The number of telephone users shot up to 723 million following the spectrum allocation, which was far more than the target of 600 million set for 2012, the affidavit said.