The government on Tuesday tabled the CAG report before the Parliament and ironically found itself at the receiving end with too much dirt being revealed in the report.

According to the report, tainted Minister A Raja ignored the advice of Prime Minister, law ministry, finance ministry, TRAI and DoT officials. He did not consult the Telecom Commission as well while arbitrarily changing the cut-off dates for application of new licences.

The Minister is also charged with tampering with first-come-first-serve policy adopted earlier as well as issuing licences to ineligible applicants. The report says that even the dual tech policy was introduced in hasty, arbitrary manner.

More importantly according to the report, Swan teleom appeared to be a front company for Reliance Telecom. Shareholding pattern of Swan raises doubts about Reliance Telecom’s intention and the control it would have on the company, says the report.

In a statement issued on Tuesday, Rcom however said, “"Our Group had no shareholding in Swan Telecom Ltd. (now known as Etisalat DB Ltd.) at the time of grant of license to them or any time thereafter, and that issue is accordingly not relevant to our Company. Reliance Communications has always been in full compliance with all applicable laws, rules and regulations, and there has been no violation of our license conditions at any stage on account of cross-holdings in excess of 10%."   

Other companies which benefited include Unitech, Loop, S Tel.