NEW DELHI, July 2: Vigilance enquiries have been initiated against Videsh Sanchar Nigam Ltd (VSNL) and its chairman and managing director B K Syngal for alleged irregularities in the manner of participation of VSNL in the Iridium project. It is reliably learnt that the Vigilance Department of the Communications Ministry has been ordered to submit a preliminary report within a week.The case which was first reported by The Indian Express in its May 18 issue relates to VSNL's investment of Rs 50 crore in October 1996 to Mumbai-based Iridium India Telecom Ltd (IITL) which is in gross violation of the established norms for a Public Sector Undertaking.IITL is a joint venture between a consortium of Indian financial institutions and Motorola of USA for a global communication technology through satellites. The technology for such services is yet to be proven and for which the Department of Telecommunications (DoT) has yet to issue a licence to IITL.The VSNL "advance" of Rs 50 crore made in October last year towards equipment purchase in the IITL gateway is now being questioned by the DoT top brass.As per the original plan for the project, while the Indian financial institutions were to make the financial contribution to the project, VSNL's role in the project was limited to operating and maintaining (O&M) the gateway established by IITL (for an agreed fees plus actual expenses incurred for operating and maintaining the gateway) through which all international telecom traffic would enter/leave the country.What is being viewed as irregular is the fact that VSNL has entered into a contract dated October 16, 1996, with IITL and paid a sum of Rs 50 crore to IITL for buying equipment and owning a part of the gateway.Documents in possession of The Indian Express clearly show that the equipment purchase shown by the agreements between VSNL and IITL is actually equity participation by VSNL for which the PSU has no DoT or Cabinet approval.The fact that VSNL made all attempts to ensure that its financial commitment does not surpass the limit of Rs 50 crore for which its Board has the financial sanction, has also raised eyebrows in the DoT.The US-base $ 4.5 billion Iridium system is a satellite based wireless personal communication system designed to permit any type of telephone transmission to reach its destination anywhere.
