Tax probe begins against 2G spectrum holders

In a development that could spell more trouble for former telecom minister A Raja, who resigned last night (See: Telecom mininster Raja finally quits), the Income Tax department has reportedly begun a probe into charges of alleged bribing and possession of disproportionate assets against some of the new operators who were awarded licenses under the 2G spectrum deal and against telecom ministry officials.

The department has also begun an investigation into the tax returns of all the telecom operators who were granted 2G spectrum licenses to ascertain their registered profits and find discrepancies, if any, according to report in The Economic Times report quoting unnamed official sources.

The department, according to the sources, will specifically look into the angle of tax evasion in the entire process of allotment of the 2G spectrum through under-stating profits and escalating losses to allegedly facilitate bribes and kickbacks.

The department is using its intelligence wing to gather financial information on all the stakeholders and individuals who were part of the spectrum allocation deal which has been marred by controversies including on the role of Raja.

The Comptroller and Auditor General has reportedly put the revenue loss to exchequer at Rs1.40 lakh crore in addition to another Rs36,700 crore on allocation of spectrum beyond contractual limit to existing nine operators.

In 2008, the Department of Telecommunications (DoT) had issued 2G spectrum to eight new operators at Rs1,658 crore for pan-India operations. It has asserted that there was no loss to the exchequer due to distribution of new licences in 2008.