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The CAG report on losses incurred to the National Exchequer from ISRO¶s sale of S-band
spectrum is accounted to be Rs. 2 Lakh Cr., more than that of the 2G spectrum scam.

The ISRO had awarded spectrum deals to Devas Multimedia, without competitive bidding

CAG - India¶s official auditor is probing the allocation of satellite-based communication

licenses, sources said on Tuesday, increasing pressure on Prime Minister Manmohan Singh as
his government grapples with graft charges that threaten their stability.

The allocation of Internet spectrum by the space ministry, which Singh oversees, and an
unrelated granting of free broadband rights by a state-run telecom firm adds to allegations
against a government already grappling with a $39 billion telecoms scandal.

The Congress led coalition government has seen its term tarnished by a string of corruption
scams that have paralysed parliament, led to the sacking of a minister, and eroded public
confidence in the prime minister and his party.

The Indian Space Research Organisation (ISRO) is being probed by the Comptroller and Auditor
General (CAG) for allocating mobile internet spectrum in 2005 without a proper bidding process
that may have cost the exchequer up to 2 trillion rupees ($44.2 billion).

Following criticism, the government moved to cancel ISRO¶s allocation of lucrative S-band
telecoms spectrum, able to provide 4G broadband internet services to India¶s rapidly-expanding
mobile phone market, to private firm Devas Multimedia.

Estimated loss is valued at Rs 2 lakh crore, greater than the 2G scam (1.76 lakh cr)
ISRO had told Department of Telecommunications last year that it would cancel the contract if
there was any violation of norms.

³The department wishes to clarify that the agreement entered into by Antrix (in a joint venture
with Devas)« is already under review« A decision on the matter is likely to be taken soon,´ a
Department of Space statement was reported as saying.

India is also probing whether state-run telecom firm Bharat Sanchar Nigam Ltd (BSNL)
appointed franchises for broadband wireless access without charging any upfront payment.

BSNL had appointed franchises on a revenue-share basis, even after paying 80 billion rupees
($1.77 billion).

³It has been pointed out that µcheap access¶ has been provided to these franchisees by BSNL,
including costly broadband wireless access spectrum in metropolitan cities for which BSNL has
already made massive upfront payment,´ Telecoms Minster Kapil Sibal was reported as writing
in a note to the Department of Telecom secretary.

BSNL chairman Gopal Das declined to comment when contacted by Reuters, saying he has not
seen the newspaper report. ($1=45.32 Indian Rupee) (Additional reporting by Anurag Kotoky;
Editing by Alistair Scrutton and Miral Fahmy)