CORRUPTION: After 2G, Isro’s S-band scam rattles Govt

February 08, 2011 9:05:16 AM

PNS | New Delhi


CAG REPORT


http://www.dailypioneer.com/316288/After-2G-Isro%E2%80%99s-S-band-scam-rattles-Govt.html

Worth Rs 2 lakh cr, latest racket leads straight to PM

Prime Minister Manmohan Singh on Monday found himself in the line of Opposition’s fire as a new ‘spectrum scam’ threatened to create fresh trouble for the embattled UPA Government.

The target has shifted from former Telecom Minister A Raja to the Prime Minister following a news report quoting the Comptroller and Auditor General (CAG) of India’s preliminary findings that the Indian Space Research Organisation (Isro) — under the Department of Space which is headed by Manmohan Singh — allotted huge spectrum to a private operator, Devas Multimedia, at throwaway prices without going through any bidding process. Devas is owned by MG Chandrasekhar, a former scientific secretary at Isro.

Pegging the State exchequer’s loss to the tune of `2 lakh crore, the Bharatiya Janata Party (BJP) has asked Singh to clarify his stand on this deal. “Recently, BSNL and MTNL were allotted only 20 MHz for `12,487 crore. But for allocation of 70 MHz to this private operator, the Government is charging only `1,000 crore,” BJP spokesperson Nirmala Sitharaman told newspersons here on Monday.

The BJP also demanded that the agreement be nullified, spectrum recovered and a comprehensive inquiry conducted to establish criminality. “This whole affair is vitiated by fraud… As a result, this country is facing not only loss of revenue but frittering away valuable national asset,” Sitharaman added.

Terming the revelations “very serious”, the Left parties demanded a thorough investigation into the “new scam”. CPI(M) Politburo member Sitaram Yechury said, “This is a new issue. The Isro is under the Department of Space, which is under the (charge of) Prime Minister (Manmohan Singh). This is a new scam.”

CPI national secretary D Raja said the new revelations were “very serious”, a view echoed by senior RSP leader Abani Roy, who demanded a JPC into the matter.

Meanwhile, the BJP also questioned the manner in which the spectrum was allocated without bringing the issue into the public domain. “This is the first time that the allocation for this band has taken place. It is a very unique band which relates to a very high MHz frequency. And this allocation was made very quietly, without any public auction or bringing it in public domain and given to a private operator,” Sitharaman said.

The BJP leader pointed out that only 190 MHz of S-band was available. Of this, 150 MHz is with the Department of Space, of which 70 MHz was allotted to Devas Multimedia.

Drawing a comparison between values of different spectrum, Sitharaman said, “The 2G spectrum is much inferior. But 2G spectrum related to only 4.4 MHz. CAG said the loss was `1.76 lakh crore. The 3G is 50 MHz. Here due to pressure from the media and public, it went for auction. And the Government’s earning in this case was `67,719 crore,” Sitharaman said.

Meanwhile, ISRO sought to clarify that the matter was being reviewed by the Department of Space and a decision in the matter was likely to be taken soon. “The CAG has already clarified in a statement on Monday that the audit of the Department of Space is under way and that only preliminary queries have been raised on the matter. These will be replied to by the Department of Space,” Isro stated on Monday.

“However,” it added, “The department wishes to clarify that the agreement entered into by Antrix, the commercial arm of Isro, and Devas on January 28, 2005, is already under review by the Department of Space … The Government will take whatever steps are necessary to safeguard public interest. A decision on the matter is likely to be taken soon.”