5 companies were ineligible for 2G license: CAG

Courtesy: Headlines Today

5 companies were ineligible for 2G license: CAG

Hinting troubles for Telecom Minister A. Raja, the Comptroller and Auditor General (CAG) has said that most of the 126 licenses issued by the telecommunication ministry in 2008 were illegal. The second CAG report, submitted on September 15, states that licences in the 2G spectrum allocations were awarded to companies that did not meet even the basic criteria. The damning audit report says that all the five new companies which got 2G spectrum and licenses were ineligible at the time of application. While two companies -- Unitech and Allianz Infra -- specialised in real estate, another one -- Shipping Stop Dot Com -- was into shipping and yet another company -- Datacom -- was involved in software development. The audit report reveals that these companies' MoA and AoA never permitted them to enter telecom sector during the time of application. These companies did not have the required net worth stipulated in the guidelines of department of telecommunication. Raja has already been in the dock for causing losses to the tune of Rs 60,000 to the exchequer in the auction of 2G spectrum. But the CAG report now goes a step further and reveals that even basic due diligence was not adhered to by the DoT in the selection of companies. The CAG had filed its first report on 2G spectrum scam in July third week.