Sibal to review selection of BSNL, MTNL chiefs

NEW DELHI: New telecoms minister Kapil Sibal is set to review the appointments to the posts of the chairman and managing directors of both state-owned telecom companies – BSNL and MTNL – executives familiar with the development told ET.

The appointments have been under the scanner after the employee unions of the PSUs had alleged that former telecoms minister A Raja’s aide RK Chandolia had arbitrarily change eligibility norms to ensure that Telecommunications Consultants India (TCIL) chairman and managing director RK Upadhyay became BSNL chief and Kuldip Singh MTNL chief.

Mr Chandolia is also under probe from both the Central Bureau of Investigation and the Enforcement Directorate for his alleged role in the 2G spectrum scam, which forced Mr Raja to resign as telecoms minister. Executives tracking the developments said that following Mr Raja’s exit, the telecoms ministry under Sibal had frozen both Mr Upadhyay as well as Mr Singh’s appointments , subject to a review process.

Another factor that led to this decision is that the Delhi High Court, earlier this months, had sought the Centre’s stand on alleged irregularities in the appointment of CMDs of BSNL and MTNL. It also sent notices to RK Upadhyay and Kuldeep Singh after the telecom watchdog and employee unions from the PSU jointly moved the court seeking quashing of the appointment procedure.

Lawyer Prashant Bhushan, who had appeared on behalf of the petitioners, told the court that “the arbitrary change in the appointment process was brought to the notice of the government on October 1, 2010, clearly pointing out the involvement of (then) telecom minister A Raja and his trusted man AK Chandolia behind this move and their ulterior motive to select one RK Upadhyay (CMD, TCIL) for the post of CMD-BSNL” .

The selection process was in violation of the recommendations of the prime minister appointed Sam Pitroda committee , which said the telecoms ministry must not interfere in day-to-day working of PSU and added that the telco must have separate posts of chairman and managing director.

The PSU’s employee unions also allege that while over 170 executives had applied for the post of BSNL chief, the duo of Mr Raja and Mr Chandolia ensured that only 12 people were called for an interview, and that too on a Sunday, when the head of the selection panel, the cabinet secretary, was not present. The next day, on October 4, five shortlisted candidates were taken to the cabinet and Mr RK Upadhyay and Mr Kuldip Singh were selected for the posts of BSNL and MTNL respectively, the unions say.