Indian feds raid DoT in spectrum probe

Indian police yesterday raided the offices of the Department of Telecom (DoT) as part of a probe into last year's 2G license allocations.

 

The Central Bureau of Investigation (CBI), federal criminal investigation agency is investigating alleged irregularities in the sale of licenses to new entrants into the telecom sector in 2008. 

 

CBI alleges there had been “a criminal conspiracy between certain officials of DoT and private persons/companies... to award licenses to these companies.” CBI would not name which companies or officials were under investigation.

 

The claims stem from the department's decision to award licenses on a “first come first serve” basis, at prices set in 2001, and then stop awarding new licenses.

 

The move sparked a political uproar after eight of the companies who received licenses in this manner then sold stakes in themselves to foreign telcos such as Telenor and Etisalat.

 

The investigators have seized files dating back to 2006, the Economic Times reported. Telecom minister A Raja defended his department, stating that it followed all rules and regulations.