2G spectrum audit
Topic: Constitutional Bodies: UPSC, CAG, Finance Commission and Others · NCERT: Beyond NCERT
Meaning
The 2G spectrum audit was the CAG's 2010 performance audit of telecom licences given in 2008. The licences were given at 2001 prices on a first-come-first-served basis. The CAG estimated a presumptive loss of up to ₹1.76 lakh crore. A presumptive loss is an estimate of what the government might have earned, not money actually lost. The audit shows how strong a CAG report can be, and it started the debate on presumptive loss versus actual loss.
Example
In Centre for PIL v. Union of India (2 February 2012), the Supreme Court cancelled 122 licences. Later in 2012, in Natural Resources Allocation, In re, the Court said the Constitution does not require an auction for every natural resource. A CBI special court acquitted all accused in December 2017. An acquittal in court does not cancel an audit finding.
Don't confuse with
- Coal block allocation audit: this was the CAG's 2012 report on coal blocks, estimating a windfall gain of about ₹1.86 lakh crore. In 2014 the Supreme Court cancelled 214 allocations.