New Delhi: The Congress today accused the Narendra Modi government of causing a loss of Rs 45,000 crore to the exchequer in order to protect six telecom companies, prompting Law Minister Ravi Shankar Prasad, who was Telecom Minister before Tuesday’s reshuffle, to term it ‘utterly bogus’ and saying it related to the period when the UPA was in power.
Congress spokesperson Randeep Singh Surjewala said that the government overstepped its limits to order an alternate audit by the Telecom Ministry rejecting the Comptroller and Auditor General's (CAG) scrutiny.
“A massive telecom scam of Rs 45,000 crore is being buried under the carpet by the Modi government who talk of transparency,” he said, adding that the scam aims to help ‘government’s industrialist friends’.
The audit by the CAG found under-reporting of income by six telecom companies to the tune of Rs 46,045.75 crore from 2006-07 to 2009-10. The six telecom companies that were audited by the CAG were Bharti Airtel, Vodafone, Reliance, Idea, Tata and Aircel.
The Congress alleged that the Modi government opted for an alternate re-evaluation of these figures by the Telecom Ministry through chartered accountants who are empanelled with them.
"This reflects the apparent mal-intent of the government to dilute or diminish the figures put forth by CAG," Surjewala said.
According to Surjewala, CAG had initiated an audit of the six telecom companies for four years from 2006-07 to 2009-10 at the instructions of the Congress-led UPA government. CAG submitted its report in March 2016.
"It specifically looked at under-reporting of income and non-uniform method of accounting adopted by various telecom companies and consequent lack of obligation to pay outstanding licence fee and Spectrum Usage Charges (SUC)," said Surjewala.
He alleged that CAG found an understating of income by these six companies of Rs 46,045.75 crore in the four years.
"CAG found that there was an amount of Rs 12,488.93 crore, which remains un-recovered by the government. This does not include penalty and other relevant taxes. Final loss for these four years would be even greater than the stated amount," he said.
"Although there has been considerable increase in business, consumer base and income, even if loss of exchequer is calculated on the same formula for the years 2010-11 to 2015-16, this figure would be more than Rs 45,000 crore," he added.
Congress also alleged that the audit by CAG was delayed due to a challenge before the courts regarding jurisdiction of CAG to audit accounts of private telecom companies.
"The Supreme Court transferred all the matters before it and rejected the claims of telecom companies according to the judgement dated April 17, 2014 and permitted CAG to audit the accounts," said Surjewala.
The Congress said that instead of immediately acting on these revelations reflecting serious loss to public exchequer, the Modi government opted for an alternate re-evaluation of these figures.
"This is a clear methodology of the Modi government to inordinately delay the process of recovery for years together, if not writing it off entirely," alleged Surjewala.
"We demand recovery of all the money and further audit of the telecom companies before and after the stated audit period (2006-07 to 2009-10). The companies that got licences after 2010 are also amenable to audit," he added.
Government hits back at Congress
The government immediately hit out at Congress over its allegation.
"Congress needs to understand that there is no underreporting case under the NDA government. It is a case of sin of the Congress-led UPA government," Prasad said, insisting that the government will recover all the dues with penalty from these telecom firms.
"The entire allegation of Congress party is utterly bogus. It relates to period of between 2006-10. According to CAG reports some telecom companies underreported their revenues. The reports came in March, which I am given to understand, is under the examination of the Public Accounts Committee," he said.
Prasad said the telecom department had sought details of documents from the CAG and received them in June this year.
"After due assessment all the dues shall be recovered with penalty. Telecom service providers are obliged to pay license fee and spectrum usage charges on the revenue earned by them. Any underreported revenue shall be recovered with penalty," he said.
The BJP also attacked the Congress calling it was a case of pot calling the kettle black as the underreporting had happened during the UPA and alleged that Congress spokespersons were putting out "lies" in their briefings.
"Such allegations are laughable. It shows the mental bankruptcy of the Congress. No wrong happened under the NDA government and to drag it in a matter that happened under the UPA is a case of pot calling the kettle black.
"Congress should introspect and not behave in an immature, childish way," its national secretary Shrikant Sharma said, calling the party "mother of corruption and misgovernance".
With Agency Inputs
