The Joint Parliamentary Committee (JPC) probing the 2G scam on Monday questioned Comptroller and Auditor General of India (CAG) Vinod Rai on how the department estimated the presumptive loss at Rs 1.76 lakh crore, and also whether it had the mandate to look into a policy decision.

Speaking to the media after the meeting, JPC chairman P C Chacko said the members asked the CAG how he calculated the presumptive loss when the Telecom Regulatory Authority of India (TRAI) had taken a definite decision that there would be no auction of the Spectrum 800-900-1800 Mhz. “It was a government decision,” said Chacko, questioning if it was a “matter of audit”.

In his report submitted to the government last November, the CAG had worked out presumptive losses citing three methodologies, with the highest figure pegged at Rs 1.76 lakh crore. While the first formula projected the loss taking into account the price offered by one company, the second was on the basis of the price obtained by the 3-G Spectrum, and the third was based on the rates at which some companies had offloaded their shares.

Chacko said all three methods were “logical”, but the moot point was whether or not the CAG had the mandate to look into a policy matter. When asked about the CAG’s response, Chacko said Rai maintained that his department had operated well within its mandate. Sources said Rai referred to a 1971 Act which empowered the CAG to define its own work. The briefing was inconclusive.

When asked if he agreed with the zero-loss claim made by Telecom Minister Kapil Sibal, Chacko said: “If that would be the case, then our work is over.”

Regarding the gap between the presumptive loss projected by the CAG and the figures given by the CBI, the JPC chief said “various agencies have given various figures”.

Replying to a question, Chacko said there was a suggestion that the committee should summon all former telecom ministers and ex-secretaries of the DoT, as well as ex-chairmen of TRAI who had been in office since 1998.

The JPC has also called the CBI director, Finance Secretary, head of the Enforcement Directorate and TRAI chairman J S Sarma.