The government today rejected the Comptroller and Auditor General (CAG) estimates of losses of 1.76 lakh crore rupees on allocation of 2G spectrum saying that they were completely erroneous. Describing the figures arrived at by the CAG as a figment of imagination, the Telecom Minister Mr. Kapil Sibal said that there were no losses at all to the exchequer.He, however, said that the government has taken very seriously the CAG's findings with regard to procedural irregularities in the implementation of the first-come-first-serve policy. Mr. Sibal said that the government is totally committed to take stringent action against any person found guilty of corruption or misconduct. The CAG in its report, tabled in Parliament in November last year, had said that due diligence was not followed during the spectrum allocation.Mr. Sibal said that the TRAI had maintained since 2003 that the 2G spectrum should not be auctioned. He said that the TRAI has consistently taken the view that revenue generation should not be a major determinant of the policy governing the telecom sector and this was also the view when 10th Plan document was finalised in 2002. It said that spectrum policy need to be promotional with revenue considerations playing a secondary role. He said, the rationale of pricing decision for 2G has to be seen in the backdrop of the Telecom Policy that has been evolved over many years. Mr. Sibal said that the policy has resulted in increased tele-dencity, reduced tariffs which are the lowest in the world today and empowered the aam admi benefiting the consumers by over 150,000 crore rupees per annum.It was also argued that the decision to auction 3G spectrum does not make an automatic case that 2G spectrum should also have been auctioned. The reason is that 3G spectrum provides value added services which are availed by companies or individuals who have the paying capacity.