FRONT PAGE | Wednesday, January 13, 2010 | Email | Print | 
PMO forces MTNL chief to quit
PNS | New Delhi
Sinha was accused of helping Motorola in getting high-value tender
Major setback for Telecom Minister Raja
In a major setback to Telecom Minister A Raja, Mahanagar Telephone Nigam Limited Chairman and Managing Director RSP Sinha was forced to resign on Tuesday on directions from the Prime Minister’s Office.
According to sources, Sinha received a call from Telecom Secretary PJ Thomas asking him to step down on Monday evening when he went to attend MTNL Board meeting. Sinha had left the venue even before the meeting started. “The Prime Minister and Sam Pitroda were extremely unhappy about the functioning of the MTNL CMD and corruption allegations against him. The CBI had already filed a detailed report on Motorola scandal involving Sinha,” sources said. Sinha was accused of helping telecom giant Motorola in getting a high value tender.
Sinha was continuing as MTNL chief after Raja denied permission to the CBI to charge-sheet him. But things changed when the Delhi High Court recently rapped the CBI for seeking the closure of the case against Sinha in helping the telecom giant Motorola in getting a high value tender.
The case, popularly known as Motorola scandal, dates back to 2003 when the CBI had recovered Rs 50 lakh in a raid on a middleman on September 25 that year. According to the FIR, MTNL paid Rs 7.18 crore to Motorola for purchase of equipment, and made illegal gratification to MTNL officials through one Rajiv Gupta, a middleman.
Sinha was then Director of Finance in MTNL, waiting to be elevated as CMD after the selection procedure. The then Prime Minister, Atal Bihari Vajpayee, had objected to the elevation.
Sinha was elevated as CMD on May 13, 2004 during the Lok Sabha election period, after the DoT cleared his name on the ground that the CBI had not yet charge-sheeted him. His posting was regularised by the UPA Government in July. The CBI investigation against him and Motorola officials moved slowly despite a spate of public interest litigations. On February 25, 2009, Raja rejected CBI’s application for sanction of prosecution against Sinha.
Raja issued orders for Sinha’s extension of service up to mid-2010, during the Lok Sabha election period in May 2009 even as the CBI approached the Delhi High Court for closure of cases against Sinha. But the court rejected the CBI plea.
Email | Print | Rate:
|