2G scam: CAG chief explains loss calculation to JPC

Comptroller & Auditor General of India Vinod Rai today appeared before the joint parliamentary committee probing the 2G spectrum scam to explain how his office arrived at the now notorious figure of Rs1,76,000 crore as the notional loss caused to the exchequer from the cheap sale of spectrum in 2008.

Rai, who submitted his report to Parliament last November, was asked to brief the JPC, chaired by Congress leader P C Chacko, on the allocation and pricing of telecom licences.

The CAG report said that the 2G spectrum was allocated to new players at throwaway prices. It also said some companies had been given undue advantage; and spectrum beyond the contracted quantity was allocated to nine firms.

The CAG report also said that the department of telecommunications (DoT) did not follow its own practice even in allocating licences on the since discredited first come, first served basis.

The findings triggered a political storm and subsequent events led to the imprisonment of the then telecom minister A Raja, some of his senior colleagues, and several corporate executives.

The creation of the JPC – a rare event in Indian parliamentary history - was the result of the adamant stand of opposition parties demanding it.