The Centre has rejected the Comptroller and Auditor General (CAG) 's estimates of losses of Rs 1.76 lakh crore in allocation of 2G spectrum saying that they were completely erroneous. Describing the figures arrived at by the CAG as a figment of imagination; Telecom Minister Kapil Sibal said that there was no loss at all to the exchequer. Giving details of his claim of nil revenue loss, the minister said the CAG auditor made calculations based on the spectrum beyond 6.2 Mhz while all licences have been given only for 4.4 Mhz. He also claimed that actual loss during the NDA regime on spectrum allocation was Rs 1, 50,000 crore . Sibal said that the government has taken the CAG's findings very seriously with regard to procedural irregularities in the implementation of the first-come-first-serve policy. Sibal said that the government was 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. 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 needed 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 the years. Mr. Sibal said that the policy has resulted in increased tele-density and reduced tariffs which are the lowest in the world today and empowered the aam admi. He also argued that the decision to auction 3G spectrum does not make an automatic case that 2G spectrum should also have been auctioned. Mr Sibal said the reason is that 3G spectrum provides value added services which are availed by companies or individuals who have the paying capacity. Reacting to Sibal claims about the loss of revenue to the exchequer to the tune Rs 1,50,000 crore during NDA regime, former Telecom Minister Arun Shourie termed the figure as presumptive.