November 17, 2010 12:11 PM

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The CAG report says, process of allocation of 2G spectrum lacks transparency and flouts every canon of financial propriety

The Comptroller and Auditor General of India, CAG, has said that 2G spectrum allocation had caused a huge revenue loss to the government as the then Telecom Minister A Raja had ignored the advice of the prime minister besides those of ministries of law and finance. The CAG report tabled in Parliament has highlighted that the entire process of allocation of Unified Access Service licences lacked transparency and was undertaken in an arbitrary, unfair and inequitable manner, flouting every canon of financial propriety, rules and procedures. Briefing reporters, the Deputy CAG Rekha Gupta said that due diligence was not followed and even the recommendations of the telecom regulator TRAI were not followed in spirit. The government auditor said Prime Minister Manmohan Singh had stressed on the need for a fair and transparent allocation of spectrum while the ministry of finance had sought for the decision regarding spectrum pricing to be considered by an EGoM.

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