New 2G licences...DoT comes under CBI scanner

The Central Bureau of Investigation (CBI) raided the offices of the Department of Telecommunications (DoT) on suspicion that wireless mobile phone network licences were awarded below the market price last year. The CBI has registered criminal cases against unnamed officials working in the DoT and company executives for colluding to keep prices down, CBI spokesperson Harsh Bhal said. He said investigations had revealed the sale of the 2G licences in 2008 was conducted on a first come, first served basis at 2001 prices without competitive bidding or an auction. The DoT also put a cap on the number of applicants, which was against the regulator TRAI's recommendations, he said. But, Telecom Minister A. Raja denied any corruption in the awarding of new 2G licences to telecom companies last year after the CBI raids. "Licences were issued in accordance with the law. I had no external pressure to deviate from the law," he said. Raja said that the allocation of new 2G licenses conformed with a long-standing telecom policy. The BJP demanded that Raja be sacked and the CBI be given a free hand in the investigations.