NEW DELHI, INDIA: The Communist Party of India (Marxist) lashed out at the Government on India saying that the manner in which the 2G spectrum was allocated by the Communications Ministry has led to a huge scandal in the country.

It is now clear from the sale of shares by Swan and Unitech that more than Rs. 60,000 crore has been lost to the national exchequer by giving away scarce spectrum at a fraction of the market price, the CPM said in a statement and demanded the government to conduct an enquiry.

The party alleged that the UPA Government, instead of addressing the huge scam that has taken place on the allocation of the fourth licence in 2G mobile services has taken the position that nothing needs to be done.

The Communications Ministry had recently come under fire from various quarters, which alleged undervaluation of 2G spectrum leading to controversy over stake sales of Swan and Unitech. The DoT had even issued a statement in this regard.

For the release of the fourth licence and the spectrum required, the Communications Ministry adopted a completely inexplicable principle of `first come first served' for allocating the licence as well as a licence fee based on 2001 price, the party pointed out.

As a result, the parties who had secured these licences have sold or are selling their shares at huge profits.

Swan Telecom bought a licence for 13 circles along with the necessary 2G spectrum for Rs. 1,537 crore and subsequently, it sold 45 per cent of its stake to UAE's telecom operator Etisalat for $900 million.

Unitech, which paid Rs 1,651 crore as licence fee, has now sold 60 per cent of its stake to Norway's Talenor for Rs. 6,120 crore, the CPM pointed out.

The deal between Etisalat and Swan Telecom, and Unitech and Talenor has brought out the magnitude of largesse that has been doled out, it said.

The government has actually got only one-sixth of what it would have got, had it gone through a fresh auction route – a loss of Rs. 10,000 crore to the exchequer on Swan and Unitech licences alone.

The total loss to the exchequer of giving away 2G GSM spectrum in this way, including to the CDMA operators, is over Rs. 60,000 crore and must rank as one of the biggest financial scam of all times in the country, the party alleged.

The Polit Bureau of the CPM demanded the Government of India to hold an enquiry to find out how a scam of this magnitude could be carried out and to put in measures in the licences so that this does not recur in the future.

Do you think the government is trying to cover up a scam? How do you see the Telecom Ministry's stand that the existing licensing policy would help the telecom penetration in the country?