RBI Governor appears before PAC on 2G issue

RBI Governor D Subbarao, who was Finance Secretary when the 2G spectrum allocations were made, Thursday appeared before Parliament`s Public Accounts Committee (PAC) and shared "accurate information" on the controversial issue.

Last Updated: Feb 03, 2011, 21:40 PM IST

New Delhi: RBI Governor D Subbarao, who was
Finance Secretary when the 2G spectrum allocations were made, Thursday appeared before Parliament`s Public Accounts Committee
(PAC) and shared "accurate information" on the controversial
issue.

Subbarao, as Finance Secretary, had raised questions over
the entry fee for mobile operators ahead of the 2G spectrum
allocations that led to the resignation of Telecom Minister A
Raja and his subsequent arrest by the CBI.

"The current RBI Governor was the Finance Secretary and he
shared accurate information regarding his communications with
the Department of Telecom," PAC Chairman Murli Manohar Joshi
told reporters here.

He said the Committee members held "significant
discussions" on the issue but ruled out submission of an
interim report on the matter during the Budget Session of
Parliament.

He said the Finance Ministry, Telecom Regulatory Authority
of India and Department of Telecom were interconnected and
hold consultations before taking any significant decisions.

Joshi refused to give any timeframe for finalisation of
the report on the 2G spectrum allocations.

In an affidavit filed in the Supreme Court, the government
had said on the issue of 2G allocation that 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.

Asked whether he would recommend a Joint Parliamentary
Committee (JPC) probe into the 2G issue, Joshi said it was not
the job of the PAC to make such suggestions.

To a question, he said the PAC had sought some information
from the PMO which had been received by them.
Joshi said some telecom companies mentioned in the CAG
report have sent their views on the matter and the same have
been forwarded to the Department of Telecom for comments.

Asked whether the PAC would ask lobbyist Niira Radia to
appear before it, Joshi said any person whose presence would
be felt necessary would be called.
"An appropriate decision would be taken at an appropriate
time," was his refrain to questions on Prime Minister Manmohan
Singh`s offer to appear before the Committee.

To another question, Joshi said the PAC was yet to get a
a reply from Lok Sabha Speaker Meira Kumar on his complaint
against Telecom Minister Kapil Sibal for his controversial
remarks on the CAG report on 2G spectrum allocations.

PTI