RBI Governor to appear before PAC

New Delhi: Continuing with its examination into the 2G spectrum allocation, Parliament`s Public Accounts Committee has called RBI Governor Duvvuri Subbarao on Thursday to record evidence in connection with the matter.

The Committee, headed by senior BJP leader Murli Manohar Joshi, is expected to ask Subbarao whether any bank regulations were violated while making the financial transactions related to the 2G spectrum allocation.

A Raja had to quit as Telecom Minister following a furore over the alleged irregularities in the 2G spectrum allocations.

Subbarao, who was the Finance Secretary when the 2G spectrum allocations were made in January 2008, is also expected to face questions on the issues, including on changes in the entry fee for telecom operators, he had raised with the Communications Ministry.

In an affidavit filed in the Supreme Court, the government had said on the issue of 2G allocation the finance secretary had raised certain queries on November 27, 2007, regarding the entry fee. A reply to this was given by the telecom secretary on November 29, 2007.

"Thereafter, no further reference or communication was received and there was no difference of opinion between the two ministries," said the affidavit.

The PAC has already questioned D S Mathur, who retired as Telecom Secretary a few days before the 2G spectrum was allocated in January 2008, Manju Madhavan, former member (Finance) in Telecom Commission.

Mathur, who retired on December 31, 2007, had claimed that Raja was determined to grant a huge number of licences from the day he joined office.

He had alleged that Raja managed to advance the cut-off date for processing the applications for licences in October 2007 itself, even though it was announced only on January 10, 2008, hours before the licences were granted.

Madhavan had sent a note recommending revision of rates at which the licences were being granted arguing that the rates be revised as they did not reflect the then market dynamics.

Former DoT Secretary Siddharth Behura and former TRAI Chairperson Pradip Baijal have already appeared before the Committee.