Raja offers to resign if spectrum allocation not within law

NEW DELHI: Defending the spectrum allocation to new operators under the existing 2G policy, Telecom Minister A Raja today offered to resign in case his ministry had violated the law in doing so.

Addressing a hurriedly called press conference to clear his position in the wake of Left parties demanding a probe, alleging Rs 60,000 crore loss to the exchequer in spectrum allocation, the minister said that TRAI recommendations were followed in letter and spirit.

Under attack since the two new telecom players -- Swan and Unitech -- sold stake to foreign companies at huge premium, Raja said it was not an outright sale and the transaction brought FDI into the country.

He said the controversy has arisen because he has managed to break the "undeclared cartel" prior to his taking over as the telecom minister last year and has allowed new players to enhance the competition in the market.

He, however, did not name the players involved in cartelisation but hinted towards existing GSM operators.

"The matter has been discussed and clarified with the Finance Minister P Chidambaram. In addition, I have also directed the Telecom Commission to deliberate on the issue of prohibiting sale of equity by promoters," Raja said.