Vinod Rai (born 23 May 1948) is a retired IAS officer who served as the 11th Comptroller and Auditor General of India. He assumed office on 7 January 2008 till 22 May 2013. He is the current chairman of United Nations Panel of External Auditors and Honorary Advisor to the Indian Railways and a member of the Railway Kaya Kalp Council.
The most prominent action of CAG under Vinod Rai was the report that stated that the 2G sprectrum allocation by the government had caused a loss of over to the government. The trial of 2G allocation accused led to the court passing the judgement that not a single piece of admissible evidence existed against the accused. Rai was made the chairman of the Banking Board of India under the new government. On 30 January 2017, the Supreme Court of India appointed Rai as the interim president of the Board of Control for Cricket in India (BCCI). He is the head of advisory commission of Kerala Infrastructure and Investment Board (KIIFB), appointed by Government of Kerala.
He is married and has three children.
Rai was instrumental in setting up the India Infrastructure Finance Company and was also on the Board of this company. Apart from serving in both, state and union governments, he has been a director on several Boards, including the State Bank of India, ICICI Bank, IDBI Bank, Life Insurance Corporation of India and Infrastructure Development and Finance Company of India.
In February 2016, Rai was appointed the chairman of Banks Board Bureau (BBB), the body which advises the government on top-level appointments at public sector banks and ways to address the bad loans.
On 2 February 2012 the Supreme Court of India on a public interest litigation (PIL) declared allotment of spectrum as "unconstitutional and arbitrary" and quashed all the 122 licenses issued in 2008 during tenure of A. Raja (then minister for communications & IT in United Progressive Alliance) the main accused. The court further said that A. Raja "wanted to favour some companies at the cost of the public exchequer" and "virtually gifted away important national asset".
However, the Presumptive Revenue loss calculation has never been established and has at best remained a conjecture. On 3 August 2012 when according to the directions of the Supreme Court, the Government of India revised the spectrum price to Rs 140 billion as reserve price for 2G spectrum and decided to sell airwaves in Delhi, Mumbai, Karnataka and Rajasthan for 1800 MHz band, and pan India for the 800 MHz band the response was poor, to say the least. The Government then announced that it would auction the unsold spectrum in the 1800 MHz band from the 2012 spectrum auction, immediately after the first round, which began on 11 March, got over to comply with a Supreme Court order. The government also reduced the reserve price for 1800 MHz by 30% and for 800 MHz by 50% from the 2012 spectrum auction. Response to the 2013 spectrum auction was also very poor. While there were no bidders for spectrum in 1800 MHz and 900 MHz bands, MTS India was the only bidder for airwaves in 800 MHz band. Airtel and Idea were reluctant to participate in the spectrum auction for due to steep pricing of the auction.
The main criticism to the report now emerging is that the CAG exceeded its constitutional mandate as it attempted in a sense to change the policy of the Government of India which at that point was to promote telecom growth and not revenue maximisation by arguing that spectrum could only be sold by auction and creating figures for Presumtive losses around it. However, the Honble Supreme Court Of India in the Presidential Reference (2012) has upheld the right of the Government to frame policy and said "The norm of 'common good' has to be understood and appreciated in a holistic manner. The manner in which the common good is best subserved is not a matter that can be measured by any constitutional yardstick — it depends on the economic and political philosophy of the government. Revenue maximization is not the only way in which the common good can be subserved. Where revenue maximization is the object of a policy, being considered qua that resource at that point of time to be the best way to subserve the common good, auction would be one of the preferable methods, though not the only method. Where revenue maximization is not the object of a policy of distribution, the question of auction would not arise. Revenue considerations may assume secondary consideration to developmental considerations." A.Raja is set free by CBI trial court and CBI went for review petition in Delhi High court, case is under trial now.
In 2014, Rai named Sanjay Nirupam as one of the MPs who pressured him to leave former prime minister Dr. Manmohan Singh out of the report. Nirupam filed a defamation case against Rai in the Metropolitan Court in New Delhi’s Patiala house. In October 2021, he tendered unconditional apology to Mr. Sanjay Nirupam for the false accusations. In a written affidavit Rai said: “That I have realised that in answer to questions posed to me by the interviewers, I had inadvertently and wrongly mentioned the name of Sanjay Nirupam as one of the MPs who pressurised me to keep the then Prime Minister Manmohan Singh’s name out of the CAG report on 2G spectrum allocation during the meetings in the PAC or the sidelines of JPC.”
There are certain times when ministers of ruling Congress coalition government criticised CAG. Minister of state in PMO, V. Narayanasamy said "CAG has no authority or right to comment on the policy of the government but unfortunately it has questioned its authority, which is totally unwarranted and against the mandate given to them". However CAG Vinod Rai defended his position by stating at an Economic Editor's Conference in 2011 "I am making it clear that I do not think the CAG is exceeding its jurisdiction, because the basic responsibility of the CAG is to identify if there is any lapse," and challenged the government to identify the specific breach of mandate.
2012 | Alumnus of the Decade | Old Students Association, Hindu College, University of Delhi | |
2013 | Civil Servant achieving Excellence in Public Administration | Mannapuram Finance Limited | |
2013 | Outstanding contribution to the Indian economy | CNBC TV18 | |
2016 | Padma Bhushan (Civil Service) | Government of India |
He figured as one of the Persons of the Year in Forbes magazine in January 2011.
In December 2011, he was chosen as the chief of UN external auditor panel.
In February 2012, CAG was complimented for professionalism, training and infrastructure by its US counterpart.
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