New Delhi, May 15
The Comptroller and Auditor General (CAG) has castigated the Department of Space (DoS) and its former Secretary G Madhavan Nair for concealing facts from the Cabinet and violating numerous rules, policies and procedures to favour a private company in the controversial Antrix-Devas deal.

The report, tabled in Parliament today, is a telling commentary on how existing rules, policies and procedures were breached. The CAG, in fact, calls “the hybrid satellite digital multimedia broadcasting service agreement with Devas a classic case of public investment for private profit”.

“Valuable spectrum frequencies, including 10 MHz, were to be reserved for strategic purpose. These were earmarked for Devas without obtaining approval of the wireless planning and coordination wing of the DoT,” the country’s top audit body said, adding that “The Antrix-Devas agreement cherry-picked from two different models in a way that extended maximum benefit to Devas”.

The CAG is particularly critical about the alleged conflict of interest in multiple roles exercised by Nair, saying this could have been avoided if different persons were appointed to crucial posts to ensure checks and balances. “Public interest and those of the government were sacrificed to favour a private consultancy firm promoted by D Venugopal and MG Chandrashekhar, retired employees of ISRO,” it said.

As per the CAG, “The Antrix-Devas deal is a classic instance of the failure of the governance structure in which selected individuals — some serving and some retired public servants — were able to successfully propel the agenda of a private entity by arrogating unto themselves the powers which they were not legitimately authorised to exercise”.

Highlighting how the alleged conflict of interest appeared in multiple roles exercised by Nair, CAG said: “Having the same person holding multiple posts of Chairman ICC, Chairman, Space Commission, Secretary DoS and Chairman-cum-Managing Director, Antrix clearly led to a conflict of interest.”

Particularly on Nair’s multi-tasking, the report explains how as the Chairman, ISRO, he appointed the Shankara Committee to examine the proposals of M/s Forge Advisers.

“As the Secretary, DoS, Nair submitted a note to the Union Cabinet in which critical facts were concealed. As the Chairman, Space Commission, he chaired meetings where approval to GSAT-6 and 6A satellites were accorded. He failed to convene INSAT coordination committee meetings as its Chairman, as a result of which, concerns of key stakeholders, represented through respective Secretaries of Ministries/Departments, were effectively blocked in the decision-making process," the CAG report said.

The report also criticised the Department of Space for its failure to explore the revenue potential of 70 MHz of S-Band spectrum earmarked for Devas for an unlimited period.