Tuesday, June 8, 2010

Bhopal Gas Case Verdict

 The Bhopal Gas case verdict, which after twenty-five years awards a sentence of just two years to the culprits, is a travesty of justice that shames India and insults the memory of the thousands killed. The verdict is the culmination of a deeply flawed process involving the culpability of Governments, investigative agencies and even the highest court of the land. These institutions compromised the interests of the country and the victims, diluting the charges, enabling the American CEO Warren Anderson to escape, and limiting liability to a paltry compensation of only 470 million dollars. These are acts of connivance to help the powerful US company and its Indian entity. 

The culprits are now all out on bail and will use the judicial process further to avoid serving even this inadequate sentence. The Government must immediately appeal against the verdict, press for enhancement of sentences and create a process by which justice can be speedily ensured. 

The Bhopal disaster and the utterly flawed legal framework shows how the American suppliers and owners have escaped any criminal liability. In this context the Civil Nuclear Liability Bill which excludes foreign suppliers from any liability may help more Warren Andersons. The Bill limits compensation to even less than the paltry Bhopal settlement. Pushing ahead with the Nuclear Liability Bill means playing with the safety and interests of the Indian people.

Monday, June 7, 2010

CPI(M) keen on including DMDK in joint struggle

CHENNAI: The CPI (M) is keen on including Desiya Murpokku Dravida Kazhagam (DMDK) led by actor Vijayakant in the joint-struggles to highlight the failures of the State and the Central governments, said G. Ramakrishnan, the State secretary of the party. However, any decision on an electoral understanding with the DMDK would be taken only at the time of elections.

“This need not be seen as a political front. The Left front exists only in Kerala, West Bengal and Tripura. In other States, we have seat adjustments during the election,” he told The Hindu on Sunday.

The Left parties in Tamil Nadu are working closely with the AIADMK and the MDMK. The two parties even supported the Left-sponsored hartal on April 27 to highlight the failure of the Centre to control the rise in the prices of essential commodities. But the DMDK was not included in these joint efforts, though the CPI (M) held parleys with actor Vijayakant before the 2009 Lok Sabha elections.
While the CPI (M) campaigned for the AIADMK candidate in the Pennagaram by-election separately, they were present when the AIADMK candidates filed their nominations for Rajya Sabha elections.
But Mr. Ramakrishnan refused to attach any significance to these events.
“We wanted to defeat the DMK-Congress combine and supported the AIADMK, because it is the best bet now. But the question of entering into an understanding with the AIADMK or other political parties for the 2011 Assembly elections will be decided later,” he said.
The CPI (M) leader said the victory of the ruling combine in all the by-elections held in the State did not mean it was invincible. “There is a discontent beneath surface, which will manifest itself during the next Assembly election,” he said.

Mr. Ramakrishnan said while the economic policies of the Congress-led UPA government had rendered the lives of the poor miserable across the country, corruption in all level in Tamil Nadu and the deteriorating law and order situation had become a cause of concern.
“Power cut in the State has severely affected small scale industries. The textile industry is going through a crisis because of steep rise in the price of yarn, while agriculture has become unviable for the farmers and agricultural labourers,” he said.

Mr. Ramakrishnan said the CPI (M) would press for devolution of power and a political solution to the Sri Lankan Tamils issue when the President of the country Mahinda Rajapaksa visited India on June 8.
(Courtesy : The Hindu)

On the Visit of Sri Lankan President to India

The visit of Sri Lankan President Mahinda Rajapaksa to India beginning on June 8 will be an occasion for the reaffirmation of the close and friendly ties between India and Sri Lanka. The visit should contribute towards strengthening these relations further.

On the occasion of the President’s visit, the Indian government should impress upon the Sri Lankan President the need for an expeditious political settlement of the Tamil question which would involve the devolution of powers and autonomy for the Tamil-speaking areas. Such a political solution will strengthen the unity and integrity of Sri Lanka.

With the end of the prolonged war, the rehabilitation of the displaced Tamil people is the other major concern. Out of the 3 lakh displaced people who were in relief camps, still around 80,000 have not returned to their homes. A speedy rehabilitation of the displaced people, ensuring their means of livelihood and their security should be a major priority. India, which is also providing assistance to this process, can discuss ways to speed up the rehabilitation. 

Sunday, June 6, 2010

CITU General Secretary writes to Prime Minister on reports of deregulation of Petrol & Diesel pricing

Dear Mr. Prime Minister,

There are disquieting reports that Empowered Group of Minister(EGOM) is scheduled to take up the issue of deregulating the pricing of petrol and diesel on 7th June 2010 as per Kirit Parikh Committee which is likely to increase price of these petroleum products by Rs. 3/- to Rs. 3.50 per litre. Such a decision apart from the cascading effect on the present unbearable inflation will also go against the following unanimous recommendation of the Parliamentary Standing Committee on Petroleum and Natural Gas placed in Parliament on 22.04.2010

“The Committee note that the Expert Group headed by Dr. Kirit Parekh Committee has made several recommendations on ‘viable and sustainable pricing of petroleum products’. In this regard, the Committee urge the Government not to consider the expert group recommendations in isolation but to give due weightage to the recommendations made by the Committee on Petroleum and Natural Gas in their 6th and 10th Reports (14th Lok Sabha) on ‘Pricing of Petroleum Products’.”

You will kindly agree that Executive is accountable to Parliament and not vice-versa. Therefore the above recommendation read along with recommendations about made in 6th and 10th report (14th Lok Sabha) cannot be sidelined / ignored by Parikh committee appointed by the Executive. This in my humble opinion will to a large extent erode the credibility of Parliamentary Committees and Parliament. I therefore urge upon you to advise the EGOM not to take any decision before getting the same examined by the Parliamentary Committee constituted for this purpose.

DYFI cadres planted 4 lakh saplings on this Environmental Day

The Democratic Youth Front of India (DYFI) Kerala State Committee observed the World Environment Day as ‘Haritha dinam’. The DYFI members across the State planted as many as 4 lakh saplings. 10 saplings each were planted by DYFI cadres in its 25,000 units. The DYFI is also observing June as the environment conservation month. Poet Sughatakumari inaugurated DYFI’s Environment Day programmes on Saturday. Actor Mukesh, Dr. Biju participated. "One Man One Tree" was the slogan given by DYFI for this programme. Chief Minister Com. V S Achuthanandan inaugurated the programme in Eranakulam district by planting a sapling. In Kannur district DYFI state secretary Com. T V Rajesh inaugurated the event by planting 1000 mangrove sapplings. DYFI All India President Com. P Sreeramakrishnan inaugurated the programme in Malappuram
.

PB Communique

Lift Blockade of Gaza

The Polit Bureau expressed its strong condemnation and outrage at the attack by Israeli armed forces on the flotilla of ships carrying humanitarian aid for the people of Gaza. Nine people were killed and many others injured in this attack on international waters. Israel behaves like a rogue State in enforcing the blockade of Gaza.

It is highly regrettable that the UPA government has not even condemned Israel by name for this attack in the statement issued by the Ministry of External Affairs and confines itself to regretting the loss of lives and the use of force. The Polit Bureau demands that the Government of India work actively with other countries to get the blockade of Gaza lifted. The Polit Bureau reiterates that India should stop all military and security collaboration with Israel as long as it remains in illegal occupation of Palestinian and Arab territories.

West Bengal Municipal Polls & its Aftermath

The Polit Bureau heard a preliminary report on the elections to 81 municipal bodies in West Bengal in which the CPI(M) and the Left have suffered losses. The West Bengal State Committee will conduct a review of the elections on the basis of which necessary political and organizational steps can be taken to win back the confidence of those sections of the people who have moved away from the Party.

The Polit Bureau strongly condemns the attack launched by the Trinamul Congress and its allies in various parts of West Bengal after the result of the municipal election. So far five activists and supporters of the CPI(M) have been killed in Birbhum, Mushirabad and Bankura districts. There have been attack on the houses of CPI(M) supporters and other places too.

The Polit Bureau appeals to all democratic forces to condemn such violence which is a blatant violation of minimum democratic norms. The Central Government should look into the role of its own Cabinet Minister in inciting such violence.

Kerala Situation

The Polit Bureau noted that various communal and caste forces are being mobilized against the CPI(M) and the LDF government. These forces are sought to be consolidated behind the Congress-led UDF. The increasing intervention of religious and communal bodies in politics does not augur well for the secular polity in Kerala.

The CPI(M) will conduct a vigorous campaign against the interference of sectarian and communal forces in the political affairs of the state.

Prices of Petroleum Products

There are reports that the government is considering a further increase in the prices of petrol, diesel and other petroleum products. This will be totally unwarranted and impose a crushing burden on the people in view of the continuing increase in food prices and inflation. The Polit Bureau warns the government not to increase the prices of petroleum products.

Food Security Legislation

Despite the declaration of the Prime Minister a few months ago that the “worst of food inflation is over”, the food inflation rate continues to remain extremely high at over 16.5 per cent. This signifies the utter failure of the UPA in checking price rise. The Government is stubbornly refusing to reverse the neoliberal policies causing price rise. Even today, the buffer stocks of over 4 crore tonnes of foodgrains are rotting in Government godowns. Yet these stocks are not being used to restore the huge cut in foodgrains allocations to the States for APL sections who have been wrongly excluded from the public distribution system.

In this context, the CPI(M) opposes the present approach of the UPA Government on the Food Security Bill, which seeks to provide legal sanction to the exclusion of vast sections of the people from the PDS based on the flawed poverty estimates. This will be even worse than the current situation where the States can move towards a universal PDS combining their own schemes with central allocations. The Government is not interested in expanding the right to food for the food insecure population. It is calculating the numbers of poor to restrict the beneficiaries in order to save resources and restrict food subsidy. The Polit Bureau of the CPI(M) reiterates its demands for a universalized system of PDS with at least 35 kg of foodgrains allocation per family at a maximum rate of two rupees a kilo.

The Left parties are holding a Convention on July 1 in New Delhi to take up this issue.

Ranganath Mishra Commission Report

The Polit Bureau demanded that the UPA government table the Action Taken Report on the recommendations of the Ranganath Mishra Commission. The recommendations pertain to reservation in jobs and education for minorities on the basis of their social and educational backward status. There has been undue delay in acting upon the report and this should be taken up in the monsoon session of Parliament.

Maoist Violence

The Polit Bureau condemned in the strongest terms the derailment of the Gyaneshwari Express in West Midnapore district of West Bengal which resulted in the deaths of 149 passengers and injuries to many more. The sabotage of a passenger train indulged in by elements of the Maoist-PCAPA combine is a terrorist act directed against innocent people. This exposes the true face of the Maoists. Firm action should be taken against such elements to deter such violent attacks in the future.

IPL Affairs

The CPI(M) had earlier pointed out the wide ramifications of the IPL affairs which involve large-scale money transactions and illegal activities in the name of a cricket. The manner in which the BCCI and the IPL body have conducted the bids and the franchising have raised a host of issues. The matter cannot be disposed off with some routine enquiries conducted by the agencies under the Finance Ministry. What is required is a full-fledged probe. This should be done by a Joint Parliamentary Committee.

Extended Meeting of the CC

The Polit Bureau discussed the outline of a draft document for the extended meeting of the Central Committee to be held in August. The PB will meet again on July 3 and 4 to finalise the draft to be presented to the Central Committee.

Saturday, June 5, 2010

The empire and lies

Reflections of Fidel

I was left with no alternative other than to write two "Reflections" on Iran and Korea, which explain the imminent danger of war with the use of nuclear weapons. I have also expressed the opinion that one of them could be overcome if China decided to veto the resolution that the United States is promoting in the United Nations Security Council. The other is dependent on factors that escape any possibility of control, due to the fanatical conduct of the state of Israel, converted by the United States into its current condition as a strong nuclear power, which does not accept any control whatsoever on the part of the superpower.

In June 1953, when the first United States intervention to crush the Islamic Revolution in defense of its own interests and those of its close ally the United Kingdom took place, which resulted in Mohammed Reza Pahlevi assuming power, Israel was a small state that had not yet seized almost all of Palestinian territory, part of Syria and more than a small part of neighboring Jordan, defended up until then by the Arab Legion, of which not a trace remained.

Today the hundreds of rockets with nuclear warheads, supported by the most modern aircraft supplied by the United States, are threatening the security of all the states of the region, Arab and non-Arab, Muslim and non-Muslim, that are in the reach of the wide radius of action of Israeli missiles, which could fall within a few meters of their objectives.

Last Sunday, May 30, when I wrote the Reflection "The Empire and drugs," the brutal attack on the flotilla transporting provisions, medicines and other items for the one and a half million Palestinians besieged in a small fragment of what was their own homeland for thousands of years, had not yet taken place.

The vast majority of people invest their time in and struggle to confront the necessities that life imposes upon them, including food, the right to recreation and study, and other vital problems of their closest family members; they do not have time to search for information about what is happening on the planet. They can be found anywhere, with noble expressions on their face, trusting that others will take charge of finding solutions to the problems overwhelming them. They are capable of rejoicing and laughing. Thus, they bring happiness to those of us who have the privilege of observing with equanimity the realities threatening us all.

The extremely strange fabrication that North Korea had sunk the South Korean Cheonan corvette – designed with cutting-edge technology, endowed with a wide-ranging sonar system and underwater acoustic sensors – in waters opposite its coast, blamed North Korea for the appalling act that cost the lives of 40 South Korean marines and inflicted dozens of injuries.

It was not easy for me to unravel the problem. On the one hand, there was no explanation as to how it was possible for any government, however much authority it enjoys, to utilize command mechanisms to give orders to torpedo an ensign ship. On the other hand, I did not believe for one second the version that it was Kim Jong II who gave that order.

I lacked the elements needed to reach a conclusion, but I was sure that China would veto a draft resolution in the Security Council to sanction North Korea. On the other hand, I was in no doubt whatsoever that the United States is unable to avoid the use of nuclear weapons on the part of the incontrollable government of Israel.

Late in the evening of June 1 the veil over what really happened began to lift.

At 10:30 p.m. I listened to the content of an acute analysis by the journalist Walter Martínez, who produces the sterling "Dossier" program on Venezuelan television. He came to the conclusion that the United States had made each part of Korea believe what each side was affirming about the other, with the objective of solving the problem of the return of the territory occupied by the Okinawa base, as demanded by the new Japanese leader, reflecting the wishes of the country. His party gained enormous backing in the elections due to that promise of his to secure the [U.S.] withdrawal from the military base installed there which, for more than 65 years, has been a dagger thrust in the heart of Japan, now a developed and rich country.

Via Global Research the really amazing details of what happened have come out, thanks to an article by Wayne Madsen, an investigative journalist working in Washington DC, who circulated information from intelligence sources on the Wayne Madsen Report website.

Those sources, he affirmed, "…suspect that the March attack on the South Korean Navy anti-submarine warfare (ASW) corvette, the Cheonan, was a false flag attack designed to appear as coming from North Korea."

"One of the main purposes for increasing tensions on the Korean peninsula was to apply pressure on Japanese Prime Minister Yukio Hatoyama to reverse course on moving the U.S. Marine Corps base off Okinawa. Hatoyama has admitted that the tensions over the sinking of the Cheonan played a large part in his decision to allow the U.S. Marines to remain on Okinawa. Hatoyama's decision has resulted in a split in the ruling center-left coalition government, a development welcome in Washington, with Mizuho Fukushima, the Social Democratic Party leader threatening to bolt the coalition over the Okinawa reversal.

"The Cheonan was sunk near Baengnyeong Island, a westernmost spot that is far from the South Korean coast, but opposite the North Korean coast. The island is heavily militarized and within artillery fire range of North Korean coastal defenses, which lie across a narrow channel.

"The Cheonan, an ASW corvette, was decked out with state-of-the-art sonar, plus it was operating in waters with extensive hydrophone sonar arrays and acoustic underwater sensors. There is no South Korean sonar or audio evidence of a torpedo, submarine or mini-sub in the area. Since there is next to no shipping in the channel, the sea was silent at the time of the sinking.

"However, Baengnyeong Island hosts a joint U.S-South Korea military intelligence base and the U.S. Navy SEALS operate out of the base. In addition, four U.S. Navy ships were in the area, part of the joint U.S-South Korean Exercise Foal Eagle, during the sinking of the Cheonan. An investigation of the suspect torpedo's metallic and chemical fingerprints show it to be of German manufacture. There are suspicions that the U.S. Navy SEALS maintains a sampling of European torpedoes for sake of plausible deniability for false flag attacks. Also, Berlin does not sell torpedoes to North Korea, however, Germany does maintain a close joint submarine and submarine weapons development program with Israel.

"The presence of the USNS Salvor, one of the participants in Foal Eagle, so close to Baengnyeong Island during the sinking of the South Korean corvette also raises questions.

"The Salvor, a civilian Navy salvage ship, which participated in mine laying activities for the Thai Marines in the Gulf of Thailand in 2006, was present near the time of the blast with a complement of 12 deep sea divers.

"Beijing, satisfied with North Korea's Kim Jong Il's claim of innocence after a hurried train trip from Pyongyang to Beijing, suspects the U.S. Navy's role in the Cheonan's sinking, with particular suspicion on the role of the Salvor. The suspicions are as follows:

"1. The Salvor engaged in a seabed mine-installation operation, in other words, attaching horizontally fired anti-submarine mines on the sea floor in the channel.

"2. The Salvor was doing routine inspection and maintenance on seabed mines, and put them into an electronic active mode (hair trigger release) as part of the inspection program.

"3. A SEALS diver attached a magnetic mine to the Cheonan, as part of a covert program aimed at influencing public opinion in South Korea, Japan and China.

"The Korean peninsula tensions have conveniently overshadowed all other agenda items on Secretary of State Hillary Clinton's visits to Beijing and Seoul."

Thus, in an amazingly easy way, the United States managed to solve an important problem: to liquidate the National Unity government of the Democratic Party of Yukio Hatoyama, but at an extremely high cost:

1- It deeply offended its South Korea allies.

2- It highlighted the skill and rapidity with which its adversary Kim Jong Il acted.

3- It emphasized the prestige of the Chinese power, whose president, with full moral authority, moved personally and sent China’s principal leaders to converse with Emperor Akihito, the Prime Minister and other eminent Japanese figures.

Political leaders and world opinion have proof of the cynicism and total lack of scruples that characterize the imperial policy of the United States.

On West Bengal Municipal Elections

IN the results of the elections to the 81 municipal bodies across the state of West Bengal held on May 30, 2010, the Left Front has won in only 18 municipalities.  The Trinamul Congress has won 26, the Congress 7, the anti-Left alliance 4, while 23 are hung, 3 have resulted in a tie.  In whose favour these would be resolved will only be known in the future. 

In the finest traditions of democratic practice, the Left Front led by the CPI(M) has accepted the people’s verdict. The Left Front in West Bengal has declared that it shall make a proper assessment and review of these results to draw correct lessons for the future. 

There has been a massive media hype that these elections are a `semi-final’ for the so-called `final’ assembly elections in May, 2011. The politically conscious electorate in Bengal is discerning in the sense that it treats every election on the basis of its objective. The Lok Sabha elections were to determine the government at the centre. The elections to the state assembly are to determine the government in the state. Likewise, the municipal and panchayat elections have their own objectives. Each election is, therefore, a different ballgame.

The Trinamul Congress has mounted a shrill campaign for the dismissal of the duly-elected state government and the holding of early elections.  This is not only patently undemocratic but completely irrational. The total number of people eligible to vote in these municipal elections was 85,33,000 out of a total electorate in the state of 5,24,32,000, ie, only 17 per cent of the total electorate.  This makes up for less than 40 seats in an assembly of 294. The rest of the 83 per cent constitutes the rural Bengal electorate or more than 250 assembly seats, which has predominantly determined the character of the government in the state in the past. Hence, it will be fallacious to conclude that the results of these municipal elections are a reflection of the state’s electorate as a whole. 

Nevertheless, it is a reflection of urban Bengal. To that extent, the Left Front is committed to undertake a serious introspection of these results. During the Lok Sabha polls in 2009, which saw a serious erosion in the Left vote, the Left Front had a lead in 525 of the 1766 municipal wards in the state or 29.73 per cent.  In these elections, the Left Front has won 603 out of 1791 municipal wards or 33.67 per cent.  Hence, the situation now shows, at best, a marginal improvement in the performance of the Left Front. 

Clearly, therefore, the setback suffered in the Lok Sabha elections has not been reversed but the downslide appears to have been partially arrested. 

In the 2005 elections to the municipal bodies, the Left Front had won an unprecedented victory bagging 50 out of the 81 municipal bodies. In the 2009 Lok Sabha elections, however, it had led in only 19.  In these elections, it has won in only 18. However, as noted earlier, the leadership of 26 municipal bodies will only be decided later.  The main reverses to the Left Front have come from Kolkata and its adjoining urban areas. North 24 Parganas district has 21 municipal bodies while Hooghly district has 12.  In 2005, the Left Front had won 26 of these 33 municipalities. This time Left Front has won only in 4 with a tie in 2 municipalities. This is a serious matter that needs to be properly reviewed in order to draw the correct lessons and apply the needed correctives. The CPI(M) and the Left Front are committed to undertake this task in right earnest. 

Friday, June 4, 2010

2G Spectrum Telecom Scam

Sitaram Yechury, Polit Bureau member of CPI(M) and Member of Parliament, Rajya Sabha has written to the Prime Minister Dr. Manmohan Singh asking the government to take urgent measures to recover the huge loss suffered by the country’s exchequer due to the manner in which 2G spectrum was sold. He further asked for action against the malafide intensions of the Minister and the Ministry. The following is the full text of the letter. 

Dear Shri Manmohan Singhji, 

In your recent interaction with the media, you have discussed the 2G spectrum case and the charges against Shri Raja, the Minister for IT&T. In this context, I would like to draw your attention to my earlier letters dated February 29, 2008 and November 18, 2008 on the spectrum issue, where I had identified the following three beneficiaries of undervaluing the 2G spectrum: 

1.The GSM operators sitting on extra spectrum in excess of 6.2 MHz
2.CDMA operators being allowed GSM license and 2G spectrum at 2001 prices
3.New operators being allowed license on a first come first served basis, again at 2001 prices 

As I will show, the acts of the Minister in the spectrum allocation have resulted in a huge loss to the exchequer. I will also bring out the legal and procedural violations that Shri Raja has committed, all with the intent to favour certain parties in the above process. 

Loss to the Exchequer and its Recovery
The recent 3G auction has established the market price of spectrum, which is a scarce national resource. From this price, it is clear that all three elements identified above have resulted in huge losses for the exchequer. If we use the recent 3G auction price to benchmark the spectrum price for 2G as TRAI has recently suggested, the loss is of the order of a whopping Rs. 190,000 crore.
  • Loss due to 122 licenses for new entrants in 2008: Rs. 124,000 crore
  • Loss due to cross-over licenses permitted to CDMA operators (Dual Technology License): Rs. 36,000 crore
  • Loss due to excess spectrum occupied by the GSM operators beyond 6.2 MHz: Rs. 30000 crore
  • Total Loss: Rs.190,000 crore
The TRAI has opined recently that GSM operators who hold spectrum in excess of the original spectrum bundled with the license should be made to pay market based prices retrospectively as benchmarked by the 3G auction prices. This is a welcome step and should indeed serve as the basis for recovering the loss to the exchequer. The same principle should be extended for the new entrants as well as the CDMA operators for the crossover license. They should also be made to pay the market value of the spectrum as benchmarked by the 3G auction. 

The argument given by the Minister that 2G license/spectrum was given cheap – Rs. 1650 crore for an all India license covering 22 circles – in order to keep the prices to the consumer low does not hold water. The Ministry illegally modified the M&A guidelines and rollout obligations allowing for sale of equity. This sale of equity in effect is equivalent to a private re-sale of the license. This means that though the national exchequer did not receive the market price of 2G spectrum, the companies benefiting from the Minister’s largesse, conducted a sale of spectrum at current market price, converting what should have been an open, transparent public auction (of the kind recently concluded on 3G spectrum) into a private auction. This explains why Swan and Unitech were able to get 5-6 times the value of the spectrum from only a part of their equity sale. 

Therefore, the Government should have no hesitation in recovering the market value of spectrum – an additional Rs. 160,000 crore – from the licensees retrospectively. In case they refuse, their licenses should be cancelled. Far from having any impact on consumer tariffs, it will enable the Government to mobilise resources and spend on social welfare, which will benefit the people. 

Misconduct of the Telecom Minister
Violation of TRAI Act: In your media interaction on May 24, 2010, you have stated that you been informed by the Minister that he followed the existing policy and TRAI recommendations. This is complete disinformation. The Minister chose to implement only certain elements of the recommendations while flouting three key recommendations of the TRAI – relating to entry limit on service providers, M&A rules and roll-out obligations. This, in spite of the fact that TRAI itself has observed in multiple letters to the DoT, that the Government should not cherry-pick from its recommendations – the recommendations should be seen as a whole. 

I would like to emphasis that in case of deviations from the recommendations, as per Clause 11 (1) (a) of the TRAI Act (as amended in 2000), consulting the TRAI was mandatory. The Government has the right to modify TRAI’s recommendations, but only after going back to TRAI, a step which the Minister did not follow. Therefore the changes in the recommendations unilaterally done by the Minister were not just arbitrary acts but a violation of statutory provisions and therefore illegal. 

The violations regarding Mergers and Acquisitions (M&A) and rollout obligations were made specifically to allow Swan and Unitech to sell their equity. If we take the TRAI recommendations on M&As together with the roll-out obligations as per original terms of the license, Swan and Unitech would not have been able to sell their equity a scant few months after receiving their licenses. 

Misuse of 2003 Policy and TRAI recommendations of August 2007 for a bogus first-come-first-served policy: The sequence of events now makes clear that the spectrum issue was not just a case of Governmental incompetence which resulted in this huge loss to the country. It was a series of deliberate acts committed by the Minister to benefit certain favoured parties. The Telecom Minister was given explicit recommendation by TRAI in August 2007 (Section 2.73) that the entry fee existing then based on 2001 prices was not realistic and there was a need to “reassess entry fee through market mechanism.” Further, the PMO (your letter), Finance Ministry, Law Ministry, and internal memos of senior officials of DoT had made it clear that instead of the dubious route of “first come first served” distribution of 2G spectrum / licenses at 2001 prices, other routes for price discovery including auction or appropriate benchmarking should be adopted. I cannot accept that the PMO, the Law Ministry, the Finance Ministry and senior officials in the DoT were all ignorant of the existing policy and TRAI provisions while advising the Ministry on entry fee/spectrum charges. Notwithstanding these recommendations, the Minister went ahead with this spurious first come first served principle claiming previous policy of 2003 and TRAI recommendations as the basis of his decision. 

It is pertinent to point out that once DoT had made a reference to TRAI (April 2007) and TRAI had given its recommendations (August 2007), TRAI recommendations have statutory status and over-ride any earlier policy. Therefore, the Minister cannot mix and match from earlier policy and the TRAI recommendations as it suits him. 

Arbitrary operation of first-come-first-served policy: There is now clear evidence that the first-come-first-served policy for award of licenses was further vitiated by entirely arbitrary operation of even this principle. The Delhi High Court Judgements of July 1 and November 24, 2009 struck down the September 25 cut-off date imposed by the Ministry on license applications as illegal, calling this change of cut-off date as “... a change in the rule after the game has begun”. 

Even more glaring was modifying first-come basis from the date of application for license to whoever deposits the money first with just a few hours’ notice. This was done well after the ranking of parties as per original criterion of first-come was known, and was nothing but a blatant attempt to change this ranking in favour of specific parties. This is now no longer a matter of inferences or media reports but stated in an Audit Report – P&T’s Audit Office report dated March 31, 2010. The entire exercise was nothing but playing favourites and awarding licenses to a hand-picked set of parties. 

Immediate Steps
The above is by no means an exhaustive list of the mala fide in the 2G license case. I am bringing out only a few instances of gross misconduct and illegal acts by the Minister. It is also clear that using the 3G license prices as benchmark, the loss to the exchequer has been around Rs. 190,000 crore. In such a situation, the Cabinet as a whole has to take responsibility of this sordid episode and take immediate action, both to repair this damage to the exchequer as well as redeeming its credibility. I would urge you to take the following steps immediately: 

1.Take immediate steps to recover lost license and spectrum fees of about Rs. 190,000 crore by using 3G license figures as the benchmark.
2.Immediately drop Shri Raja from the Cabinet while the probe is in progress to prevent undue influence being used to thwart the probe.
3.Suspend the officials against whom now prima facie case exists for illegalities.

Thursday, June 3, 2010

SFI - DYFI protest in Tamil Nadu

The Democratic Youth Federation of India (DYFI) and Students Federation of India members held demonstrations in different parts of the state on Wednesday to press demands pertaining to educational standards.
 
 
The agitators wanted the authorities concerned to ensure that private schools were charging tuition fees as per the structure framed.