CAG submit its latest report to govt. on 2G spectrum scam

12th december 2010: The Comptroller and Auditor General (CAG) has submitted its latest report to the government saying non-auction of the 2G spectrum in 2008 may have cost the exchequer up to Rs1.40 lakh crore besides over Rs36,000 crore on account of additional spectrum to existing players beyond 6.2 Mhz.

The Department of Telecom (DoT) had given new licences bundled with the start-up 2G spectrum in 2008 to 121 licencees at the 2001 price of Rs 1,658 crore for pan-India operations.

The CAG has also pointed out that the telecom ministry went ahead with distribution of licences despite finance and law ministry's opposition to non-auction method of allotting spectrum.

The TRAI has also said that it was still studying the method for arriving at methodology for linking the 2G spectrum price with that of 3G and hope to submit its report to DoT in next 3-4 weeks.