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2G loss: JPC questions CAG’s assessment New Delhi, May 30 Arguing that it was the government policy to not auction the Spectrum and matters related to it (the policy) were the Centre’s sole prerogative, some JPC members asked CAG Vinod Rai, who appeared before the committee, if he was within his powers to delve into policy issues. Rai was asked if he had, while computing the notional loss on account of no-auction of the Spectrum, considered the fact that the TRAI never recommended the auction. The import of the argument was - if there was no policy to auction the Spectrum, how could there be any loss. The committee was reportedly deeply divided on the issue, with some members saying that conventions, where the CAG had delved into policy, could not override constitutional provisions. The statement was rebutted by some like CPI’s Gurudas Dasgupta, who argued in favour of reading the convention and the Constitution in
context. The latter was supporting the CAG’s decision to look at a policy matter that caused losses to the exchequer. Majority of members, however, said they would comment on the “rightness” or flaws” in the CAG’s conclusions of presumptive loss after the latter had replied to their queries. Some members also cited a certain 1971 law which allowed the CAG to define the scope of his work. But the meeting remained inconclusive and would continue when the CAG is summoned as a witness after June 7 and 8 - .the days when the CBI Director and Finance Ministry officials will appear - before the panel. “The meeting didn’t conclude as some members wanted the government’s reply and action taken reports on CAG’s telecom reports of 2006 and 2010. Both these documents were missing. Some members also asked the CAG how he arrived at a notional loss when the TRAI had never recommended the Spectrum auctioning,” JPC chairman PC Chacko said. The CAG reportedly cited three indicators on which he relied to calculate the notional loss due to no-auction of Spectrum - revenue collected through 3G auction; the price for 2G Spectrum certain telecom firms offered to pay to the government; further profitable selling of cheaply purchased Spectrum by telecom firms. Chacko, when asked, if the committee was not sending wrong signals by questioning the CAG’s power to look into policy, said, “The CAG can compute notional losses but whether he can examine policy is a serious matter which he must explain.”
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