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A.Raja, minister for IT and communications has resigned from the government following allegations that he caused the government exchequer losses between Rs 900 billion and Rs 1400 billion, by awarding scarce 2G spectrum to new entrants in 2008 based on an outdated policy.

Post his resignation, the telecom portfolio is unlikely to be handed over to anyone till the current parliamentary session ends on December 13. Meantime, the telecom portfolio will remain with the Prime Minister, Dr Manmohan Singh.

Not willing to step down for this long despite controversies, DMK’s Raja stated that he only did so at the behest of his party?s leader (M Karunanidhi) to avoid embarrassment to the government and to allow the parliament session to function.

Despite the resignation, Raja remains adamant that he has not been party to any wrong doing. ?I have decided to resign. But I have done no wrong. My conscience is very clear and I have done everything according to the law,? he told the media.

Still, Raja has been under tremendous pressure from the opposition to tender in his resignation since the Comptroller and Auditor General (CAG) of India submitted its report after 18 month of probe pointed to many irregularities and favorites played in awarding national telecom licences on a first-come-first-served basis.

The opposition, still gunning after Raja, is insisting on a Joint Parliamentary Committee (JPC) investigation into the 2G spectrum scam. In so far, the Government has not agreed to that demand.

In fact, the government has ruled out a statement by Prime Minister in the Parliament on the resignation of Raja. The government also stated that the oppositions demand for a JPC probe is ?unacceptable”.

Meanwhile, the Telecom Regulatory Authority of India (TRAI) is likely to recommend either a penalty clause or cancellation of licences of those operators who have either failed to launch services or cover particular areas within the stipulated time. These recommendations are likely include all the new licencees, who were given licences in January, 2008 by Raja.