Displaying "undue favour" to cellular operators, the wireless planning and coordination wing under the ministry of communication authorised the players to start services without obtaining licence fees and spectrum dues in advance which caused the government a loss of Rs 162.93 crore (Rs 1.63 billion).
Out of the 29 cellular operators in 24 circles, only 11 were granted licences by the WPC. The remaining 18 operators were providing services without any valid licences from the WPC wing, thereby giving undue favour to these operators, Comtroller and Auditor General of India said in its latest report.
There was delay of up to five years before these 11 cellular operators were granted licences and they continued to operate without valid licences during the intervening period, it said.
A sum of Rs 162.93 crore was outstanding against 29 cellular operators as of March 2003. It was a result of WPC's authorisation to them to start services without obtaining licence fee and spectrum charges in advance, it said.
Koshika Telecom, which was operating in four circles, owed Rs 39.77 crore (Rs 397.7 million). The company discontinued the services in three circles during 1999 and in the fourth circle during 2002 without clearing the outstanding government dues, the CAG said.
It pulled up the government for showing largesse to the operators saying under the rules; the royalty for use of spectrum should be paid in advance before grant of licence or commencement of services.
