Subramanian Swamy testifies against Chidambaram in 2G case

Subramanian Swamy also said he would make a distinction between the issue of Letters of Intent (LoI), done by Raja, on January 10, 2008 (mentioned in the press release issued by the DoT the same day) and actual issue of licences which began only from February 2008 onwards.

An LOI, he said, is only the intention of the government to award licences, provided the conditions are met.

At this point, Subramanian Swamy told the court he needed more time to bring on record, another few certified documents.

Subramanian Swamy: As far as the second charge is concerned, it was Chidambaram who allowed Swan and Unitech to offload their shares.

Minutes of Chidambaram's meeting with Raja dated November 5, 2008:

"In the meeting, the Finance Minister clarified that dilution of shares to attract foreign investment for business expansion did not amount to sale of licence. And these companies did their share dilution as per corporate laws".

This despite the fact that the Home Ministry had raised objections to the financial transactions by Etisalat in India, as Etisalat was a blacklisted company. The Home Ministry had cited security concerns. And this finds a mention on the website of Etisalat.

Subramanian Swamy: There are two charges against Raja. The first is giving spectrum at nominal prices fixed in 2001. The second is allowing Swan and Unitech to offload their shares to Etisalat and Telenor respectively even before the roll out of services at several times the price they paid the government for the licences.

The above mentioned documents show how Chidambaram was complicit with Raja vis-a-vis the first charge - spectrum pricing.

Subramanian Swamy: In view of these facts, it is crystal clear that Chidambaram was involved in spectrum pricing. Chidambaram was, all along, being apprised of the unsuitability of fixing prices at the 2001 level and giving spectrum at zero price along with the licences.

Subramanian Swamy: Minutes of Chidambaram's meeting with Raja on January 31, 2008 -

"The Telecom Minister met the Finance Minister today on the subject of spectrum charges. The Finance Minister said that for now, we're not seeking to revisit the current regimes for entry fees and revenue share".

This is corroborated by the letter written by Chidambaram to the PM on January 15, 2008.

 It says, "This leaves the question about licencees who already hold spectrum over and above start-up spectrum. In such cases, the past may be treated as a closed chapter".

Subramanian Swamy: It is clear that there are three different concepts:

1) Entry fee
2) Charges for spectrum
3) Revenue share

In pursuance of this empowerment (reference to the 2003 cabinet meeting), the two ministers, Chidambaram and Raja, met on four occasions - January 31, 2008, May 29, 2008, June 6, 2008 and subsequently, after an agreement was reached and a meeting of minds took place, they together met the PM on July 4, 2008 and conveyed their decision to the PM.

Subramanian Swamy: The PM said "the government's policy on spectrum pricing is based on a cabinet decision of 2003 which left it to the DoT and MoF. The two Ministers had agreed on this because of legacy considerations and I accepted their recommendations".

Subramanian Swamy: The PM also corroborated this in a statement made on the floor of the Rajya Sabha on February 24, 2011.

Subramanian Swamy: This is confirmed by the official memo of March 25, 2011, submitted by me in Supreme Court. This memo was confirmed by the Finance Ministry.

Subramanian Swamy: In a letter dated April 21, 2008, Chidambaram addressed A Raja and stated, "After you have had the opportunity to examine the same, may we meet and discuss and reach some conclusions? These conclusions could then be presented to the PM."

Subramanian Swamy: Chidambaram was aware that the cabinet decision of 2003 empowered him and Raja to jointly decide on spectrum pricing.

Subramanian Swamy: Chidambaram, in a letter dated January 15, 2008 addressed to the Prime Minister, informed the latter that the Department of Telecommunication (DoT) and Ministry of Finance (MoF) would discuss and finalise the spectrum pricing formula which would include incentive for efficient use of spectrum.

Subramanian Swamy in court: Both Raja and Chidambaram, ex-officio, were empowered by 2003 cabinet decision to determine spectrum price jointly.

Subramanian Swamy in court: Accused A Raja could not be guilty of these charges alone. He committed these offences with the active connivance of the present Home Minister P Chidambaram.