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2G's next generation

2G's next generation

Author: J Gopikrishnan
Publication: The Pioneer
Date: June 11, 2011
URL: http://www.dailypioneer.com/344978/2G's-next-generation.html

Kapil Sibal thought he could deflect public attention from the Congress' role in the 2G scam by bringing all deals since 2001 under the scanner. Now, he has ended up trapping the DMK all over again

The investigation into the 2G spectrum scam has now reached the doors of Union Minister Dayanidhi Maran. It was the result of the ill advise of the Congress' dirty tricks department which tried to draw the BJP into the net. They had that by bringing all telecom deals since 2001 into the ambit of the Joint Parliamentary Committee's probe they could somehow find a scam involving the NDA government, which, in turn could deflect attention from their own crime. However, that move backfired on them.

But whoever was advising the government forgot the simple fact that Pramod Mahajan, the Telecom Minister from the BJP, has been dead for five years and therefore it is no longer possible to take criminal action against him. Without checking facts they bayed for the blood of Arun Shourie (who was Minister from January 2003 to May 2004), who did everything with the approval of Cabinet and Group of Ministers. Congress crisis managers, especially new Telecom Minister Kapil Sibal, who seems to believe that he is the greatest authority on law, could scarcely conceal his glee when the Supreme Court ordered the CBI to probe into spectrum allotments made in the 2001-2007 period. However, the UPA's managers somehow forgot that apart from A Raja, they had another man in the Telecom hot seat - Dayanidhi Maran. The son of Murasoli had headed that coveted Ministry from May 2004 to May 2007.

Now, Maran is facing the heat on a complaint or deposition filed by the business tycoon C Sivashankaran to the CBI. After five years, Siva, the founder of Aircel, the mobile telephony operations company, is alleging that Maran had arm twisted him to sell his company to the Malaysian giant, Maxis. He was forced to conduct the deal at the "meagre" price of Rs 4,500 crore in mid 2006. Siva further alleged that Maran had delayed his expansion by two years by issuing licenses in other telecom circles. The allegations of quid pro quo on Maran is that after this deal the Maxis group had invested Rs 600 crore in the Sun network which is owned by members of his family.

Maran counters Siva's allegations and claims Siva was planning to sell his company well before he became Telecom Minister in UPA-1. Maran's argument the he has no share in Sun Network controlled by his elder brother Kalanithi Maran is a laughable defense. Of course, Maxis' investment in Sun Network is not a secret deal like Shahid Balwa linked companies' dubious payoff of Rs 200 crore to Kalaignar TV. Maxis-Sun Network is approved by SEBI and Cabinet Committee on Economic Affairs (CCEA) on foreign investment. Whether it was a quid pro quo for alleged arm twisting of Siva by Maran to sell his company Aircel to Maxis at "cheap price", is to be probed by CBI.

Yet, it is still amusing that after getting Rs 4,500 crore, why did Siva float another shell company called STel with just Rs 10 lakh capital. STel was ignored by Raja and won the case in 2G spectrum allocation violations. After winning the case in the Delhi High court, what made him compromise with Raja by withdrawing the case? Raja arm-twisted Siva by citing a manipulated Home Ministry's directive and ordered to shut down the operation of STel. Within three days, he withdrew from the case in Supreme Court. But Raja's designs collapsed after Janata Party president Subramanian Swamy impleaded in the battle between Raja and Siva. This murky deal is also under investigation of CBI.

CAG declared STel's licenses illegal for violating mandatory net worth guidelines of DoT. It is still a mystery why a person who got Rs 4,500 crore floated a shell company in somebody's name. Has he shared his booty with somebody in the Aircel selling?

I am not at all buying the versions in the report of Justice Shivraj V Patil, appointed by Sibal. It is nothing but a report written by a convenient judge. The retired Supreme Court judge never mentioned Prime Minister Manmohan Singh's direction to Raja for freezing the spectrum allocation on November 2, 2007. I have in my personal capacity submitted to this retired Judge the copy of the Prime Minister's crucial letter, which was first reported in The Pioneer in October 2009. This letter was kept in the safe custody in Raja's home, till CBI's raid at his home in December 2010. Raja never put this letter in the DoT files.

The violations in spectrum allotment started from UPA by ignoring the Cabinet decision of the NDA on this matter. During Shourie's tenure, the Cabinet decided in October 2003 that in determining the price of the spectrum, the DoT should consult the Ministry of Finance. But when Maran objected this decision and locked horns with the Finance Ministry with the argument that the pricing of spectrum was the prerogative of DoT. The then Finance Minister, P Chidambaram, was not so strong to overrule Maran due to the compulsions of coalition politics. Upon Maran's pressure Prime Minister Manmohan Singh sided with his argument. Manmohan Singh approved Maran's demand to change the Terms of Reference on spectrum pricing. The CAG report on the 2G spectrum scam mentions this incident and says quoting rules that a Cabinet decision can only be changed through another Cabinet decision.

This in effect shows that Prime Minister Manmohan Singh's approval to Maran's argument without going through the Cabinet decision route was wrong. Moreover, when two ministries have difference of opinion, like in the case of Finance and Telecom, the matter should be referred to the Cabinet. The CAG report exposes this irregularity. The entire UPA has now got to answer how they allotted telecom licenses and spectrums in 2006, during Maran's tenure, at prices fixed in 2001. The CAG did not find loss during Maran's tenure, simply due to the Prime Minister's approval in changing the Terms of Reference of the GoM.

The new controversy surrounding Maran is on the matter of operating an illegal telephone exchange of BSNL at his home and dubiously connecting it to the offices of the Sun Network. Maran had already sued all and sundry for making this allegation, though all the reports were based on CBI's note to Raja. Obviously this note was generated when Maran was at loggerheads with his grand uncle and party patriarch Karunanidhi.

Sibal is maintaining silence on this issue. The question today is: will the Maran controversy ultimately touch the Prime Minister?


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