CBI raids DoT offices over fishy spectrum allocation

The CBI today searched the offices of the Department of Telecommunications in connection with alleged irregularities in allocation of 2G spectrum to some of the new players.

A team of CBI investigators conducted searches at the Sanchar Bhawan in New Delhi after registering a case in this connection yesterday evening.
According to reports, all records pertaining to the allocation of spectrum to new players in January 2008 will be scanned to see if there were irregularities in the process.

In 2008, eight new players were given licences along with bundled 4.4 MHz spectrum to start mobile services. The telecom ministry had come under attack for doling out spectrum very cheap compared to its actual market value.

The Central Vigilance Commission, the union government's main watchdog, had last week recommended a CBI probe into the procedures followed for selecting companies for giving 2G spectrum. Eyebrows were raised when two of the new players - Unitech Wireless Services and Swan Telecom - sold part of their stake at a huge premium within days of getting the licences.

The government had given telecom licence along with start up spectrum at Rs1,651 crore for pan-Indian services.

The CVC had raised questions as to how DoT awarded licences on a first-come-first-served basis in the absence of a policy in this regard. The CVC report also questions the wisdom of the department for failing to specify a lock-in period in the licence agreement, which could have helped ensure entry of only serious players in the business.