"This whole affair is vitiated by fraud. And as a result, this country is facing not only loss of revenue but frittering away of valuable national asset which is a rare spectrum," BJP spokesperson Nirmala Sitharaman said.
A newspaper report claimed CAG is investigating the allotment of 70 MHz from the available 2500 MHz of S-band spectrum to Devas multimedia for 20 years. The company is owned by M G Chandrasekhar, former Scientific Secretary at ISRO.
BJP demanded this agreement be immediately nullified and the spectrum space given to the private user be recovered.
"Secondly, we demand a comprehensive inquiry to establish the criminality in the whole matter. We also demand recovery of the lost revenue," Sitharaman said.
The party alleged this is a "very serious scandal" as it involves a "very unique and rare" spectrum. It also said since the Department of Space is directly under the Prime Minister, he should immediately clarify his stand on the whole issue.
"The spectrum we are talking about is 5-G which relates to GHz. Recently, BSNL and MTNL were alloted only 20 MHz for Rs 12,487 Crore. But for allocation of 70 MHz to this private operator, the government is charging only Rs 1,000 Crore," Sitharaman said.
Meanwhile, the office of CAG has clarified that its investigations into the issue are at a preliminary stage and the media reports should not be treated as findings of this department.BJP also questioned the manner in which the spectrum was allocated without bringing the issue to the public domain.
"This is the first time the allocation for this band has taken place. It is a very unique band. Relates to a very high MHz frequency. And this allocation was done very quietly, without any public auctioning or bringing it in the public domain. And given to a private operator," Sitharaman said.
She maintained that only 190 MHz of the S-band is available. Of this, 150 MHz is with the Department of Space and 70 MHz of this was alloted to Devas multimedia.
"2-G spectrum is much inferior. But 2-G spectrum related to only 4.4 MHz. CAG said here the loss was 1.76 lakh crore. 3-G is 50 MHz. Here due to media and public pressure, it went for auction. And the government's revenue earning here was Rs 67,719 Crore," Sitharaman said, drawing a comparison.
She alleged the loss due to this allocation of 70 MHz was Rs 2 lakh crore.
"From mid-2011, the commercial use of this spectrum is going to commence. The process of allocation was violated. Moreover, Devas Multimedia has also been given two custom-made satellites and 10 transponders for use.