2G Spectrum - Can Government recover the lost Revenue?

The 2G spectrum scandal is the largest  in Indian History perhaps world history. The public could not grasp the full extent until Nira Radia surfaced. There were several ill advised missteps by Government including not appointing JPC. Read my other blogs. In this we can discuss whether we should able to recover the money and how to proceed further.

The first step should be to Scrap the contract. Under Section 23 and 24 of the Indian Contracts Act 1872, a contract becomes void if it is tainted with corruption. Union Government can cancel 2G Spectrum allotment. There is precedence here in this case. Army canceled its Helicopter purchase deal with Eurocopter in 2007. The question is whether Congress Government will do it. I strongly doubt in the backdrop of alleged involvement by Sonia Gandhi's Sisters in this deal. In my view, Congress does not want any open investigation in this case including JPC. Probably this could end Nehru Dynasty and Dynasty of Muthuvel Karunanidhi (DMK). Corporations and Lobbyist will not allow this either. They fight this one out for sure.

The second possibility is UPA - 2 Government falls, either through another election or realignment of parties forms a new Government. Even if that happens, the investigation and recovery will not be easy. Corporate Lobbyist has good relations with all major parties. They will not let this happen.

The third and feasible option is Supreme Court forces Union Government to void the 2G spectrum sale and orders resale of the 2G spectrum. This will possibly make up the lost revenue. There are several challenges unlike Army Deal. TeleCom companies using this bandwidth currently. SC/Government need to make sure services are not interrupted. The process should be designed to maximize Government revenue at the same time maintaining healthy competition. Next important factor is how do we make sure consumers interest are protected. The corporates will try to pass on the added cost to consumers. Some how this must be prevented.

Government must also go behind the corrupt politicians and officials. Their ill earned money should be seized. We should not let this off the hook like Bofors and other cases. Supreme Court / Government should establish a process for this as well.

I have high regards towards Dr. Manmohan Singh. However he is guilt by association. He is our best hope even though he is not independent in decision making. I am hoping for miracle (may be a day dream). Dr. Manmohan Singh appoints JPC, voids the Spectrum allotment even thought it will cost his job. It will be his best service to The Nation.

Write back to me with your comments.