Flawed telecom spectrum management caused losses: CAG
The Comptroller and Auditor General (CAG) has found several shortcomings in the Department of Telecommunication's (DoT) spectrum management policy which has resulted in losses to the Union government's exchequer.
 
According to the report submitted to the Parliament on Tuesday noted that allocation of a set of spectrum in 2015 was done on a first-cum-first-served (FCFS) basis, in contradiction to the recommendations of a committee, even as 101 applications for microwave (MW) spectrum were pending with the government.
 
"In contravention of the Committee's recommendations, allocation of 'MW Access' (microwave access) spectrum had been done on 'First Come First Serve' (FCFS) basis to date as was being done for 2G license or 'Access Spectrum' till 2009. This was despite the fact that it was used for providing public commercial services and 'MW Access' spectrum was allotted for the entire service area (first carrier) and or at least for some cities, as being done in case of access services spectrum (2G/3G/4G spectrum). 
 
It was also found that allotment of MWA to Access Service providers was withheld by DoT since June 2010 and allotment against only one application was made in December 2015. There were 101 applications pending till November 2016 for allotment of MWA," the 125-page report said. 
 
The MW access is provided to telecom service providers for mobile services.
 
The Telecom Department had constituted a committee in December 2012 to look into the allotment of spectrum in various categories of spectrum users and proposed that the spectrum allotment in microwave band to all the operators should be done through auctions.
 
The report also found that allotment of "MWA to Access Service" providers was withheld by DoT since June 2010 and allotment against only one application was made in December 2015. The report, however did not name the applicant.
 
"Thus by non-allotment of MWA spectrum to Access Service Providers despite availability resulted in loss of revenue to the government," said the report.
 
It further said the financial impact due to delay in withdrawal of excess spectrum held by Bharat Sanchar Nigam Ltd (BSNL) is Rs 520.79 crore.
 
Further, the audit report found that while putting up spectrum in 1800 MHz (megaheartz) band for auction, this portion of additional guard band spectrum was not considered for sale, rendering 4.4 MHz spectrum (0.2 MHz spectrum in each 22 LSAs) in 1800 MHz, unutilised. 
 
The report has estimated the annual loss on account of non-utilisation of the 4.4 MHz spectrum was Rs 30.92 crore.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

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121 entities including IL&FS, Kingfisher, Helios & Matheson, United India Insurance, Sahara Q Shop, Ruchi Soya, Sterling Biotech, Heera Gold, Religare, Fortis and DS Kulkarni under SFIO scanner for Frauds and Illegal Transactions
The Serious Fraud Investigation Office (SFIO) is investigating as many as 97 entities including Infrastructure Leasing and Financial Services Ltd (IL&FS), Kingfisher Airlines Ltd, Helios & Matheson Information Technology Ltd, Sahara Q Shop Unique Products Range Ltd, Delhi and District Cricket Association (DDCA) among others, reveals a reply in the Lok Sabha.
 
"The ministry of corporate affairs (MCA) has ordered investigation against such companies where they are allegedly involved in fraudulent activities including through illegal accounts or transactions," says PP Choudhary, minister of state for law and justice and corporate affairs, in a written reply. 
 
According to the minister, in case of 24 companies, the SFIO has completed investigation and had filed prosecution against the company and its directors and promoters. Three members of parliament (MPs), Rajesh Pandey, Ravindra Kumar Pandey and Nishikant Dubey had asked the question on illegal accounts and transactions carried out by companies and action taken by the government. 
 
Mr Choudhary said, during FY15-16, the ministry ordered investigation against 25 companies, out of which it has filed prosecution on four cases. SFIO was handed over probe of about 30 companies in FY16-17. During the next year, SFIO investigated 33 cases out of which in two cases the investigation has been completed and action has been taken. In current financial year (FY18-19), prosecution has been filed against seven companies and their directors under various provisions of the Companies Act. These companies include, Unity Infra Projects Ltd, Zen Shaving Ltd, Birla Pacific Medspa Ltd, Usha Martin Telematics Ltd, Usha Mutual Benefit Society Ltd, Woodland Retail Pvt Ltd, Nava Diganta Capital Services Ltd and Nava Diganta Agro Industries Ltd. In the current fiscal year, filing of prosecution against RTC Properties India Ltd and Anatnath Vincom Pvt Ltd is under process.
 
Here is the list of companies under the SFIO scanner...
 
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COMMENTS

Mahesh S Bhatt

5 months ago

Better late then never Mahesh Bhatt

Dayananda Kamath

5 months ago

There are other ways also of concealing NPA. Nationalised banks issue guarantees to PSUs for the limits availed by them with other financiers and enhance the guarantee limit including unserviced interest periodically since long time. Will they investigate.

R Balakrishnan

5 months ago

Doubt if the SFIO has the headcount and head contents to investigate. Most of the cases will go unsolved in to perpetuity

mahesh

5 months ago

all HAVE CHEATED INNOCENT PUBLIC, GOVT. DOES NOT PUNISH THEM, PUBLIC NEVER GETS MONEY BACK, DIRECTORS START SOME OTHER BUSINESS AND KEEP ON CHEATING, PROCESS IS SLOW AND IN-EFFECTIVE, JUSTICE DELAYED IS DENIED. GOVT. MUST TAKE FINANCIAL FRAUDS SERIOUSLY PL.

Report Sees Corporate Revenue Growth Down at 12%-13% in Q3 on High-Base Effect; Cost Pressure
Corporate revenue growth is expected to print at 12%-13% on-year for the third quarter of this fiscal ended 31 December 2018, or 400-500 basis points (bps) lower than the about 17% on average in the first two quarters, predicts CRISIL. “That’s primarily because of the high-base effect created by the 13% growth seen in the third quarter of last fiscal, which followed around 7% in the preceding two quarters,” says the report. 
 
Prasad Koparkar, senior director, CRISIL Research says, “Commodity and infrastructure-linked sectors are expected to support revenues for the quarter ended December. Steel, cement, natural gas and petrochemicals are expected to be driven by volume and/or realisation growth, while sectors such as construction and capital goods are expected to grow on a pickup in execution of key infrastructure-led government schemes. In consumption spending-led sectors such as airline services and retail, revenues will be supported by positive demand sentiment, while in export-oriented segments such as IT services and pharma, the boost would come from a weak rupee on a y-o-y basis.” 
 
 
Growth in operating profit (EBITDA) or earnings before interest, tax, depreciation and amortisation, is also expected to print lower, at just below 10% year-on-year compared with about 15% over the three quarters preceding. 
 
Linked to this, India Inc is expected to report a margin contraction of around 50bps year-on-year for the quarter amid rising raw material costs across sectors. 
 
 
The forecast is based on CRISIL Research’s analysis of 362 companies, which account for ~67% of the market-capitalisation of the National Stock Exchange, excluding banking, financial services and insurance (BFSI) and oil sectors. 
 
However, overall revenue growth will be constrained by a demand slowdown in automobiles, sugar, aluminium and telecom services, according to the report. Automobiles revenue is expected to have been impacted by a rise in ownership costs, while the other sectors would bear the impact of lower realisations and competitive pressures. 
 
Even with healthy top-line growth, CRISIL expects to face dampened profitability at the operating level with rising input prices building pressure on the cost structure. Despite softening of commodity prices and a weakening of the rupee towards the end of Q3 FY18-19, the prices of most common commodities remain high on-year. Having said that, the full impact of the softening may be visible in the fourth quarter of this fiscal.  
 
 
Says Rahul Prithiani, director, CRISIL Research, “Domestic prices of coal, long steel, flat steel and aluminium are expected to have risen 13%, 15%, 18% and 6%, respectively, on-year in the third quarter. Additionally, oil prices are expected to print 10-11% higher even as rupee depreciation would be ~11% on-year. Limited ability to pass through increased input prices to end customers in sectors such as airlines, cement, retail and telecom due to competitive pressures and high sensitivity to price movements will also accentuate pressure on the margins.”
 
Industry Outlook  
 
In airline services, aggregate revenue of the sample is expected to increase 16%-18% on year-on-year in the third quarter of fiscal 2019 on the back of a strong growth in passenger traffic, primarily in the domestic sector. In cement, aggregate revenue across large-, mid- and small-sized players is expected to witness a growth of ~10%. In the fast moving consumer goods (FMCG) segment, CRISIL expects year-on-year aggregate revenue growth of 7%-9%.
 
In IT services sector, the rupee’s depreciation against the dollar so far this fiscal would likely boost the sector’s revenue, as per the report. In pharmaceuticals, a favourable domestic market and new product launches,  coupled with the rupee’s depreciation are expected to support revenues for both large- and mid-sized formulation players, whereas in power, increased demand is expected to generate 6%-7% higher revenue. In steel products, revenue for the quarter is expected to witness robust 25%-30% growth, led by healthy volume growth and higher steel prices.
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