RBI chief to appear before PAC Thursday

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 Mr Subbarao whether any bank regulations were violated while making the financial transactions related to the 2G spectrum allocation.
Mr A. Raja had to quit as telecom minister following a furore over the alleged irregularities in the 2G spectrum allocations.
Mr 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.
Mr 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.

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4 countries respond to info request
Age Correspondent
New Delhi

Jan. 30: The Enforcement Directorate (ED), which is probing the 2G spectrum scam, has reportedly received replies from about four countries to which “Letters Rogatory” (LR) were issued late last year seeking information about source of funding of certain telecom firms who were awarded unified access service licences.
According to sources, more information has been sought based on the replies received. Sources, however, refused to divulge the names of the countries that have responded to the LRs.
The Supreme Court has asked both the ED and CBI to submit status reports on their probe to it by February 10, when the 2G spectrum case will come up for hearing.
The ED had late last year sent LRs to 10 countries including Russia, UAE, Isle of Man, Cyprus, Mauritius, Norway, Singapore and Libya.
The ED had registered a case under the Prevention of Money Laundering Act in March, 2010 against unknown officials of the department of telecommunications (DoT) and representatives of certain private companies in connection with the award of new telecom licenses in 2008.
The CBI recently sent its first LR to authorities concerned in Mauritius to know the source of funding to certain private telecom companies which were allotted 2G licenses.

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