Reality Check India

Scam : CPM pushes for investigation

Posted in Uncategorized by realitycheck on December 19, 2008

The PM and former FM still have not come out with a statement about the Rs 55,000 Crore scam.

1. The Rs 60K Crore direct revenue loss to the government : No one is denying this loss. Sure, it can be justified as startup concession. That only means that the loss happened due to the startup concession.

2. The profits made by the private entrepreneurs merely by holding the above paper. No one seems to be denying this either.

The Prime Minister must come out with a statement. Remember, we did not elect the Telecom Ministry, Home Ministry separately. Everyone is part of the UPA.

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CPM Press Release

The left really deserves kudos for their exemplary work on exposing this scam. The BJP seems to be reluctantly tagging along. This is their latest press release.

Institute Immediate Probe
While the Minister of Communications continues to mislead the Parliament and the larger public by obfuscating matters, what is more disturbing is the deafening silence on the part of the Prime Minister on this issue. That there has been an enormous loss to the national exchequer due to the arbitrary allocation of 2G licenses is incontrovertible. Responsibility for the huge loss to the national exchequer must be fixed and concrete steps undertaken to recover the amount from the beneficiaries of the scam.

In the light of the material being made public, the CPI (M) demands immediate action on the part of the Prime Minister in this regard. Failure to initiate probe into the matter and fix responsibility, undertake steps to retrieve the lost revenues and review the entire gamut of spectrum allocation policies would make the entire Cabinet complicit with this gigantic scam.

Source : CPI-M Press Web Site

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An excellent article by Sunil Jain (“Telecoms black swan“) brings to light some new facts about the scam.

The Reliance Communications’ story is an interesting one. And the company’s explanation for the events is so beyond the realm of normal expectations, it can only be classified as a Black Swan event, to use Nassim Taleb’s classification — an event so rare, it happens once in a millennium.

- – -

Reliance ADA, for the record, has a different explanation for things, an explanation that is also quite worrying. According to Reliance ADA, a very large group of builders (Dynamix Balwas own the Meridien Hotel in Mumbai and the Hyatt in Goa) approached it to say there was a possibility of getting a telecom licence; but since the builders had no telecom experience, it was decided Reliance ADA employees would be directors of Swan, the firm chosen to apply for the spectrum. According to Reliance ADA, since it was in the telecom business and felt it could do business with Swan if it got a licence (Swan could, for instance, rent out its telecom towers), it didn’t mind doing this.

Source : Business Standard

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Watch UTVI

I switched TV channels today see if any one was running a story on this giant among scams. CNN-IBN, NDTV, TIMESNOW, none of them even mentioned it. My guess is because the PM and former FMs have been in the loop according to the minister.

UTVI was the only channel which carried a story including an interview with Sitaram Yechury.

This is a great chance for UTVI + Business Standard to shake up the other media houses.

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2 Responses

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  1. Mayur said, on August 14, 2009 at 8:17 am

    All the media houses ie.NDTV,CNBC,Hindustan times,Economic times (times of india)are involved in a gigantic fraud called the ‘Private treaties’scam.If you dont believe me,just google ‘Times private treaties’.This expose was only run by DNA (newspaper).Infact even one of the editors of Economic times was involved in the Pyramid saimira scam.As usual,SEBI is sleeping and the public is bleeding.Yeh hai mera india!!
    Trust no one should be the motto of this cuntry.(oops…country)

  2. [...] 19 2008 : Scam – CPM pushes for investigation Watch [...]


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