The CBI has arrested DMK MP and former telecom minister A Raja and his two close associates in the 2G spectrum allocation scam

The Central Bureau of Investigation (CBI) on Wednesday arrested former telecom minister A Raja and his two of his associates in connection with funding and allegedly showing favours to some telecom companies in granting 2G spectrum between October 2007 and 2008.

On Tuesday, Dravida Munnettra Kazhagam (DMK) leader and Tamil Nadu chief minister M Karunanidhi met Prime Minister Dr Manmohan Singh and Congress president Sonia Gandhi, which is now being considered as significant in the wake of Mr Raja's arrest.

The CBI also arrested Mr Raja's brother K Perumal, his close aide RK Chandolia and former telecom secretary Siddharth Behuria. During the first term of the United Progressive Alliance (UPA) government, Mr Chandolia worked as Mr Raja's private secretary. Later, when Mr Raja became telecom minister for the second time, Mr Chandolia was appointed as Economic Advisor to the Telecom Ministry.

Earlier this morning, Mr Raja was called to the CBI office and was questioned for the fourth time. The CBI has questioned the former telecom minister on 24th and 25th of December last year and on 31st January as well.

Yesterday, the one-man panel of retired chief justice Shivaraj V Patil submitted its report on the procedures for awarding 2G licenses between 2001 and 2009 to telecom minister Kapil Sibal.

Mr Raja was forced to resign on 14th November last year in the wake of the Comptroller and Auditor General (CAG) report, which held that the spectrum allocation at undervalued prices resulted in a notional loss of Rs1.76 lakh crore to the state exchequer.

The DMK Member of Parliament (MP) was on earlier occasions questioned at length on the circumstances leading to spectrum allocation which has been criticised severely by the Central Vigilance Commission and the CAG. He was also asked about his conversations with corporate lobbyist Niira Radia and the reasons of advancing the cut-off date of allocation of the spectrum in 2007.

The Supreme Court has asked the CBI and Enforcement Directorate (ED) to submit status reports on their investigations into the 2G spectrum case to it by 10th February when the case will come up for further hearing. In its first information report (FIR), CBI mentioned the loss as Rs22,000 crore based on CVC findings which had referred the case to it.