2G spectrum scam: Raja resigns as telecom minister

Mtoday news

New Delhi, Nov 14:  After meeting the Prime Minister this evening, Telecom Minister A Raja confirmed that he had resigned.

"In order to avoid embarrassment to the Government and maintain peace and harmony in Parliament, my leader (DMK chief M Karunanidhi) has advised me to resign. I will prove my innocence, I did every thing in accordance with the law. I did a revolution in the Telecom sector. My conscience is clear. I did much for the country, for my people." Raja said.

Raja’s alleged role in the 2G scam had allowed the Opposition to accuse the government of permitting corruption within its ranks. Parliament was stalled all of last week by the Opposition which demanded that Raja be sacked.

Just a short while before that, an impatient Raja told reporters at the Delhi airport that there was no question of him stepping down.

However, through the day, the hectic political activity in Delhi and Chennai suggested the opposite. In Delhi, the Congress’ top rung, including the Prime Minster and Sonia Gandhi met to discuss Raja’s exit.

In Chennai, Raja met with DMK chief Karunanidhi twice before heading to Delhi. At one point, seven senior Congress leaders, including Finance Minister P Chidamabaram were reportedly in touch with the DMK to orchestrate Raja’s exit.

Congress spokesperson Jayanthi Natarajan said that the Congress’  crucial alliance with the DMK remains unchanged, ending speculation over whether Karunanidhi would exit the UPA Government at the Centre over Raja. The DMK provides the support of 18 MPs to the centre. Karunanidhi was worried about how the dismissal of Raja, a Dalit leader, would be perceived by voters. Tamil Nadu votes in a few months for its  next government. The DMK still maintains that Raja has done no wrong.

BJP spokesperson Prakash Javadekar described Raja’s resignation as a victory of the people.

 

Raja’s term as Telecom Minister seemed headed for an abrupt end after a report by the Government’s auditor last week blamed him for costing the government close to Rs. 1.76 lakh crores by undervaluing 2G spectrum in 2008, and, by following unfair practices in deciding who would be awarded 2G licenses.  The Comptroller and Auditor General’s report (CAG) was leaked to the media.  It is to be tabled in Parliament shortly.

The Supreme Court which is monitoring the case is scheduled to hear the matter on Monday. Raja’s resignation, hours ahead of that hearing, may have been stage-managed by the Government to avoid more embarrassment in court.  At an earlier hearing, the court asked why Raja had not been removed from office.

The Opposition has also been asking for a Joint Parliamentary Committee to investigate the scam. So far, the Government has not agreed to that demand.

WHAT IS THE 2G SCAM?

•    2G licenses issued in the year 2008 at 2001 prices

•    Raja insisted on ’first come-first served’ policy

•    9 companies got licenses for nearly Rs. 10, 800 crore

•    Some firms sold partial stakes for much higher rates

•    CAG: Govt lost between Rs. 1.4 & 1.76 lakh crore

•    CAG: Raja ignored advice of Law, Finance ministries