RBI Governor to appear before PAC on 2G spectrum allocation

Posted By: Pti
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New Delhi, Jan 29 (PTI) Continuing with its examinationinto the 2G spectrum allocation, Parliament''s Public AccountsCommittee has called RBI Governor Duvvuri Subbarao on Thursdayto record evidence in connection with the matter.

The Committee, headed by senior BJP leader Murli ManoharJoshi, is expected to ask Subbarao whether any bankregulations were violated while making the financialtransactions related to the 2G spectrum allocation.

A Raja had to quit as Telecom Minister following a furoreover the alleged irregularities in the 2G spectrumallocations.

Subbarao, who was the Finance Secretary when the 2Gspectrum allocations were made in January 2008, is alsoexpected to face questions on the issues, including on changesin the entry fee for telecom operators, he had raised with theCommunications Ministry.

In an affidavit filed in the Supreme Court, thegovernment had said on the issue of 2G allocation the financesecretary had raised certain queries on November 27, 2007,regarding the entry fee. A reply to this was given by thetelecom secretary on November 29, 2007.

"Thereafter, no further reference or communication wasreceived and there was no difference of opinion between thetwo ministries," said the affidavit.

The PAC has already questioned D S Mathur, who retired asTelecom Secretary a few days before the 2G spectrum wasallocated in January 2008, Manju Madhavan, former member(Finance) in Telecom Commission.

Mathur, who retired on December 31, 2007, had claimedthat Raja was determined to grant a huge number of licencesfrom the day he joined office.

He had alleged that Raja managed to advance the cut-offdate for processing the applications for licences in October2007 itself, even though it was announced only on January 10,2008, hours before the licences were granted.

Madhavan had sent a note recommending revision of ratesat which the licences were being granted arguing that therates be revised as they did not reflect the then marketdynamics.

Former DoT Secretary Siddharth Behura and former TRAIChairperson Pradip Baijal have already appeared before theCommittee.

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