Govt rejects CAG report on 2G spectrum scam

New Delhi: Government on Friday rejected CAG estimates of losses of Rs 1.76 lakh crore (rpt crore)on account of allocation of 2G spectrum to telecom operators saying it "had no basis and was utterly erroneous".

"We are extremely pained at methodology adopted by CAG (Comptroller and Auditor General) for arriving at 2G spectrum (allocation loss) figures… that have no basis", Telecom Minister Kapil Sibal told reporters here.

The CAG estimates on losses arising from sale of 2G spectrum, the minister added, were "utterly erroneous".

Asserting that there were actually no losses to the exchequer, Sibal said "CAG has done injustice to itself and the Opposition is doing injustice to aam aadmi"

The CAG in its 77-page report of CAG, tabled in Parliament in November last year, had said that due diligence was not followed and even the recommendations of the telecom regulator TRAI were "not followed in spirit".

The report said the "presumptive" loss caused to the exchequer through spectrum allocation to 122 licensees and 35 dual technology licences in 2007-08 was Rs 1,76,645 crore. It arrived at the figure on the basis of 3G auction held earlier this year in which the government mopped up over Rs 67,000 crore.

The 2G scam has become a major political issue with the Opposition demanding a Joint Parliament Committee to probe the issue. The demand, however, was rejected by the government leading to disruption of almost the entire Winter Session of Parliament.