CBI's FIR No.

RC-DAI-2009-A-0045 dated Oct 21, 2009

Suspected offence: Criminal misconduct and criminal conspiracy

Particulars of accused: (1) Unknown officials of DoT; (2) Unknown private persons/companies and others

Contents of First Information Report: A reliable source information has been received that during 2007-08 certain officials of Department of Telecommunications entered into a criminal conspiracy with certain private persons/companies and misused their official position in grant of Unified Access Service Licences causing wrongful loss to the Government and corresponding wrongful gain to those private persons/companies.

In pursuance of the above mentioned criminal conspiracy, the officials of DoT issued a press release on 24.9.2007, which appeared in the newspapers on 25.9.2007 stating that no new applications for Unified Access Service licence would be accepted by the Department of Telecommunications after 1.10.2007. A large number of applications including those from competent and established telecom operators were received during the short period of 26.9.2007 to 1.10.2007. However, none of these applications were considered for allotment of Unified Access Service licence and on 10.1.2008, the above mentioned officials of DoT issued Letter of Intent (LoI) in 122 Circles to nine service providers who had applied for licence on or before 25.9.2007. Thus, the applicants who had applied before 26.9.2007 were shown favour. The justification for award of these licences without competition was given by these officials of DoT vide press release dated 10.1.2008 that application which was received first shall be processed first and if found eligible letter of intent (LoI) shall be granted to the applicant. It was further mentioned in this press release dated 10.1.2008 that whosoever complies with the

conditions of LoI first would be granted the UAS licences.

As per the information received, all this was done in criminal conspiracy between certain officials of DoT and private persons/ companies in order to award the licences to the companies for a heavy consideration by putting a cap on the number of applicants against recommendations of TRAI and by awarding licences to private persons/companies on first come first serve basis on the rates of 2001 without any competitive bidding.

Further, there are the allegations that the above mentioned officials of DoT had selectively leaked the information to some of the applicants regarding the date of issuance of letter of intent on 10.1.2008. In the letter of intent, an arbitrary condition was incorporated that whosoever deposits the fees first would be the first to get licence. Since some of the applicants who had this information were ready with the amount were able to deposit the fee earlier than others. Thus, favour was shown to some applicants by way of leaking the information about the date of issuance of letter of intent. These licences were issued at a very nominal rate based on prices fixed in the year 2001. The quantum of loss to the Government of India because of this criminal conspiracy is estimated from the fact that M/s Swan was allotted UAS licences for 13 circles for Rs 1,537 Crores. It off-loaded 45 per cent of its share in the licence before rollout to M/s Etilsalat of UAE for Rs 4,200 crores. Similarly, M/s Unitech was allotted UAS licences for 22 circles for Rs 1,658 crores. It off loaded its 60 per cent of its share in the licence to M/s Telenor of Norway for Rs 6,100 crores even before rollout. The estimated loss to Government by grant of licences to these two companies alone comes to Rs 7,105 crores. On pro rata basis, the estimated loss for all 122 circles is more than Rs 22,000 crores.

Thus,

the

concerned

officials

of

Department

of

Telecommunications in criminal conspiracy with private persons / companies by abusing their official position granted Unified Access Service Licences to a few selected companies at nominal rate by rejecting the applications of others without any valid reason thereby causing wrongful loss to the Government of India and a corresponding wrongful gain to private persons / companies estimated to be more than Rs 22,000 crores.

The aforesaid facts disclose commission of offence under sections 120-B IPC r/w section 13(2) r/w 13(1)(d) of Prevent of Corruption Act, 1988 against certain unknown officials of Department of Telecommunications, Government of India, unknown private persons / companies and others.