26/08/2011

26-08-2011: More trouble for Raja in BSNL's WiMax franchisee deal.............TOI

NEW DELHI: The Central Bureau of Investigation (CBI) has registered a preliminary enquiry (PE) in connection with an alleged manipulation in awarding BSNL's WiMax franchise to a friendly firm, which may land former telecom minister A Raja in further trouble.

CBI sources claimed that a case could be registered against Raja and top BSNL officials for conspiracy and forging documents in the WiMax franchisee deal. The Central Vigilance Commission had found major irregularities during allotment of BSNL's WiMax franchisee to Starnet Communications, which is purportedly owned by some of Raja's close associates. Allegations abound that Starnet had failed to meet BSNL's specifications, and yet it was given the franchise in six circles.

Officials claimed Raja had reportedly intervened following which BSNL decided to give WiMax to Starnet on a revenue-sharing model in which the private operator would be the custodian of 20MHz of spectrum, and BSNL would get less than 30% of the revenue. Five companies, each of which had turnover of Rs 100 crore annually, had reportedly applied for the same franchise, but Starnet bagged the deal.

Starnet had allegedly fudged its balance sheet to show a turnover of more than Rs 100 crore