2G scam: CBI arrests A Raja, aides

Hours after he was summoned to the CBI headquarters for questioning,
former Telecom Minister A Raja was arrested for his alleged role in the
2G spectrum scam.
Also arrested - two men who worked closely with Mr Raja - R K
Chandolia, who served as his Personal Secretary, and Siddharth Behura,
who was Telecom Secretary.
The Congress quickly asserted that the arrest of the DMK leader will
not impact its alliance with Mr Raja's party in Tamil Nadu; the BJP
focused on describing the action against Mr Raja as "too little, too
late."
And across the political board, all players agree that the arrest is an
attempt by the government to rebut charges that it has not acted
against corruption - a refrain of the Opposition over the last few
months.
Mr Raja's arrest has been seen as a given in political circles for
weeks now. He has been interrogated by the CBI four times since
December, including on Monday.
His homes and offices in Tamil Nadu and Delhi have been raided; his
diary and computers were seized by the CBI and are likely to be
presented against him as evidence.
In 2008, Mr Raja, as Telecom Minister sold valuable spectrum to telecom
operators at prices that were determined in 2001; some companies that
won 2G licences were new to the telecom sector, and sold some of their
stake immediately for huge profits. The financial and procedural
irregularities were pointed out almost immediately by the Opposition.
But it was only in November 2010 that the allegations seemed poised to
push Mr Raja out of the Telecom Ministry. The catalyst was a report by
the government's auditor - the Comptroller and Auditor General (AG) -
which declared that Mr Raja was guilty of colluding with companies he
favoured to grant them mobile licences, even though they were ineligible
and had in some cases lied or misrepresented information in their
applications. The figure of 1.76 lakh crores floated by the CAG as the
value of the scam crushed any chances of Mr Raja's survival.
He was forced to resign, though he said in his defense that he had
followed the policies introduced by his predecessors in the NDA
government. He also said that by selling spectrum cheaply, he had
delivered a country of mobile users - India's immoderate tele-density,
he said, could be attributed directly to this.
Kapil Sibal, who replaced Mr Raja as Telecom Minister, described the
CAG report as "completely erroneous" and said the government had
suffered no losses on account of 2G allocation. Today, the BJP's Arun
Jaitley said the fact that Mr Raja has been arrested neutralized Mr
Sibal's claim. If the 2G process had been handled correctly, he asked,
why was Mr Raja arrested?
Mr Jaitley also went on to target the Prime Minister, asking why he had
kept silent for so long on the 2G scam when it was apparent that there
were serious concerns about a senior minister in his cabinet.
The government has been accused repeatedly of shielding Mr Raja to
protect its alliance with the DMK. At the Centre, the DMK is a key
partner in the UPA coalition. In Tamil Nadu, the Congress props up the
DMK government. And both parties have announced their partnership will
continue for the state elections due to be held in May.
Mr Raja's arrest gives the Congress an enviable advantage now in that
partnership. The Congress asserted today that Mr Raja's arrest is not a
stress test for its relationship with the DMK. In Tamil Nadu, DMK
sources tell NDTV that while Mr Raja's arrest could matter to voters in
cities like Chennai and Madurai, rural voters have been disinterested in
the 2G scam.
So far, the DMK has stood firmly by Mr Raja, stressing that it would
take action against him only if he were found guilty in the 2G spectrum
scam. In December, the party organised a series of rallies to project Mr
Raja as a reliable and admirable leader.
Jayalalithaa won't let the DMK forget that. In the Tamil Nadu elections
where she will confront the Congress-DMK alliance, Mr Raja gives her
much ammunition. "This arrest only raises more questions than it
answers...it seems to be a ruse to hoodwink the public and also to tell
the Supreme Court that some action has been taken with regard to the
Spectrum 2G Scam."
The CBI's investigation into the 2G scam is being closely monitored by
the Supreme Court on the basis of several petitions, including one filed
by former Law Minister Subramanian Swamy. On multiple occasions, the
CBI has been accused by the court of mishandling the inquiry.
The 2G scam has also turned into one of India's biggest political
battles. The Opposition refused to let Parliament function during the
winter session after the government refused to sanction a Joint
Parliamentary Committee (JPC). The BJP has threatened that the Budget
session scheduled to start soon will see the same forces at work, unless
a JPC is set up.
The government has argued that in addition to the CBI and the Supreme
Court, the 2G scam is being studied by Parliament's Public Accounts
Committee (PAC) which is headed by BJP leader Murli Manohar Joshi.
Creating a JPC, it says, will only slow down the process of nailing
who's to blame for the 2G scam. The Prime Minister has offered to appear
before the PAC - Mr Joshi has said the offer will be considered at a
later stage.
Today, Mr Jaitley said that the demand for a JPC has not been weakened
by Mr Raja's arrest. "The JPC is on a much larger issue. Even on the
culpability of Raja, now that they are admitting he prima facie did
something wrong and arrested him, what was the Prime Minister doing when
it was brought to his notice? So with such a track record of a cover up
I don't think the government anywhere comes out in the clear," said
Jaitley.