2G Scam: Parliament adjourned, government again rejects JPC

New Delhi:  The man now being called Spectrum Raja has finally gone, but the
Opposition is far from satisfied.

In Parliament, the  BJP delivered on its promise of an unforgiving campaign for a

Joint Parliamentary Committee (JPC) on the 2G scam. In the Lok Sabha, the
Opposition chanted "We want JPC." Both the Lok Sabha and the Rajya Sabha were
adjourned for the day early on Monday. 

The Prime Minister was expected to address the Lok Sabha on the 2G scam later
today.

Telecom Minister A Raja resigned last night after a week of considerable

embarrassment for the government over the 2G scam. Both he and his party - the
DMK - stressed that the resignation was not an admission of guilt, and that Raja
wanted to pave the way for Parliament to start functioning (it has been stalled by
the Opposition over the 2G scam.

Raja's resignation came after a report by the government's auditor on the 2G scam
was leaked to the media. The report blames Raja for costing the government close
to Rs. 1.76 lakh crore by failing to auction 2G spectrum in 2008. He chose, instead,
to award licenses based on prices negotiated in 2001.

The government has so far refused to a JPC on the 2G scam. The Opposition
argues that a JPC is critical because while the CBI is investigating the case, it
functions, according to the Opposition, as an extension of the government and will
therefore not conduct an impartial inquiry.

Sitaram Yechury of the CPM said a "meaningful JPC probe" was needed as "it will
not only investigate the scam but set up rules and benchmarks for the future as the
JPC in the Harshad Mehta scam did."

For the government, the stakes are high. The DMK offers the support of 18 MPs to
the UPA , and it took considerable maneuvering to persuade DMK chief M
Karunanidhi that Raja's continuance in office was untenable.

So far, both the DMK and the Congress have emphasized that their alliance holds
strong, despite Raja's exit.

Tamil Nadu votes in a few months for its next government. The DMK's main
political foe, J Jayalalithaa of the AIADMK, also has an eye on those polls and will
not miss an opportunity to score. She issued a statement on Monday, demanding
that Raja be arrested. Jayalalithaa said "Raja mocked constitutional institutions"
and that his resignation was "long overdue." The AIADMK chief said the 2G scam
was "the biggest in the history of mankind." 

Supreme Court to hear spectrum case 

 
The spectrum issue also comes up in the Supreme Court today and there were
whispers that Raja's resignation, hours ahead of that hearing, may have been stage-
managed by the government to avoid more embarrassment in court.  At an earlier
hearing, the court asked why Raja had not been removed from office.
 
Weekend politics
 
It was a hectic weekend that saw much political activity in Delhi and Chennai. An
impatient Raja told reporters at the Delhi airport that there was no question of him
stepping down, but there were indications otherwise. 

In Delhi, the Congress' top rung, including the Prime Minster and Sonia Gandhi
met to discuss Raja's exit.

In Chennai, Raja met with DMK chief Karunanidhi twice before heading to Delhi.
At one point, seven senior Congress leaders, including Finance Minister P
Chidambaram were reportedly in touch with the DMK to orchestrate Raja's exit.

Raja's term as Telecom Minister seemed headed for an abrupt end after a report by
the Government's auditor last week blamed him for costing the government close
to Rs. 1.76 lakh crores by undervaluing 2G spectrum in 2008, and, by following
unfair practices in deciding who would be awarded 2G licenses.  The Comptroller
and Auditor General's report (CAG) was leaked to the media.  It is to be tabled in
Parliament shortly.

TRAI to recommend penalty

•    Telecom regulator TRAI is likely to recommend huge penalty or cancellation of

licences of those operators who have either failed to launch services or cover
particular areas within the stipulated time. 
•    Many of them are yet to meet the roll-out obligations, or even launch the
services. 

•    TRAI recommendations would include all the new licensees, who were given in
January, 2008 by Raja. 

•    The TRAI Chairman is believed to have said they are working on it, the
recommendations may be given soon to the government.

The Supreme Court which is monitoring the case is scheduled to hear the matter on
Monday. Raja's resignation, hours ahead of that hearing, may have been stage-
managed by the Government to avoid more embarrassment in court.  At an earlier
hearing, the court asked why Raja had not been removed from office.

WHAT IS THE 2G SCAM?

•    2G licenses issued in the year 2008 at 2001 prices

•    Raja insisted on 'first come-first served' policy
•    9 companies got licenses for nearly Rs. 10, 800 crore
•    Some firms sold partial stakes for much higher rates
•    CAG: Govt lost between Rs. 1.4 & 1.76 lakh crore 
•    CAG: Raja ignored advice of Law, Finance ministries