DoT caused Rs 1,649 crore loss: Audit report

A report by the director general (DG)of audit, post and telecommunications, has noted the government had lost Rs 1,648.91 crore due to the inaction of the Department of Telecommunications (DoT), as it failed to raise demands based on reserve price on nine licencees who continued operations after February 15, 2012.

According to an internal note the director general of audit, post & telecommunications at the national auditor has pointed towards the Supreme Court judgment of February 12, 2012, which had declared 122 telecom permits illegal. The court had asked the telecom department (DoT) to auction bandwidth freed up due to the cancellations.

The Comptroller & Auditor General (CAG) pointed out that while ordering auctions, the court had directed that while some of the quashed licensees would win the spectrum, the ones who don't must pay up for the airwaves they use until then.

The DG stated the DoT did not raise demands on licencees — Unitech Wireless, Loop telecom, Videocon Telecommunications, Sistema Shyam teleservices, Etisalat, Idea Cellular, STel, Spice Communications and Tata Teleservices — who continued operations, despite the Supreme Court ruling they should pay the reserve price fixed by the government in November 2012. This has led to non-realisation of the money from these firms. The report added DoT also did not either cancel the licences or withdraw the spectrum these companies hold for their cancelled licences.

Source: http://cablequest.org/news/telecom-news/item/3831-dot-caused-rs-1,649-crore-loss-audit-report.html