CAG says Raja cost India Rs.1.70 lakh crores

After Ashok Chavan, the Congress party may turn the heat on telecom minister A Raja with the Comptroller and Auditor General (CAG) holding him personally responsible for the sale of 2G spectrum that cost the national exchequer a loss of Rs 1.70 lakh crore in 2008.

Raja, who is from the DMK, is already under intense scrutiny by the telecom watchdog, civil society and the Supreme Court and in its latest report on the alleged 2G spectrum, the CAG said that the minister for IT and communications ignored advice from the PM and ministries of law and finance, and the recommendations of the Telecom Commission to allocate 2G spectrum to a select group of companies at throwaway prices.

A copy of the CAG report was submitted to the PMO on Monday.

The CAG has backed up its claims, by attaching files which, it claims, establish the minister’s personal culpability.

The CAG also did not spare the Telecom Regulatory Authority of India (TRAI) and accused the telecom watchdog of standing by as a spectator when its recommendations were either ignored or misused.

Around 85 licences to 12 companies out of the 122 new licences were issued in the controversial January 2008 decision.

The CAG said that the companies which won the rights did not meet the prescribed DoT eligibility conditions.