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NEW DELHI: A Department of Telecom (DoT) official on Thursday told the special CBI court hearing the 2G spectrum scam case that a report of the Telecom Regulatory Authority of India (Trai) in 2010 had said it was "not feasible" to auction spectrum.

Deposing as a prosecution witness, Viresh Goel, DoT's deputy advisor (MN), told special CBI judge O P Saini that Trai's report had said spectrum should be given to new operators at a "reasonably low price".

"In paragraph 3.116 (of the Trai report), it is mentioned that spectrum to the new operators should be given at a reasonably low price. It is further stated that this was the reason that the figure of Rs 1,659 crore (entry fee) was maintained for so many years. It is correct that in paragraph 3.46 (of the Trai report) it is mentioned that in the view of the authority, it was not feasible to auction the spectrum in 800, 900 and 1800 MHz band," Goel said.

Goel, who was on deputation in Trai from January 2010 to June 2011, said he had provided the data to CBI regarding adjusted gross revenue (AGR) per MHz on behalf of Trai but he was not aware about gross revenue.

Besides Goel, the court also recorded the statement of prosecution witness Vinod Kumar Budhiraja, chief regulatory officer of Etisalat DB Telecom (P) Ltd. He said Associated Hotels (P) Ltd, allegedly a sister concern of DB Realty, had taken a property belonging to accused R K Chandolia, ex-private secretary of former telecom minister A Raja, on rent for its guest house in Safdarjung Development Area.

Budhiraja said the property was taken on rent with the help of Chandolia's broker. The witness said he did not know if there was any influence in decision-making of Associated Hotels (P) Ltd from directors of DB Realty or anyone else on behalf of the company.

"It is correct that neither Shahid Balwa (promoter of Swan Telecom) nor Vinod Goenka (MD of DB Realty) ever contacted me to find out accommodation for themselves for the purpose of a guest house. It is correct that brokers keep the name of the owner secret from the prospective tenants till the finalization of the deal," he said. Budhiraja said till the time of signing the lease deed for the rented premises, he did not know that it belonged to Chandolia.

"There was no pre-plan to take the premises of Chandolia. It was just a coincidence," he said, adding, "I did not find anything unusual or illegal in taking the premises of Chandolia on lease. It was done in ordinary course of business. This premises was taken on rent on March 9, 2009. This is more than a year after issuance of UAS licence to Swan Telecom Pvt Ltd. The deal was finalized as the rent of Rs 63,000 per month was lower than other accommodation seen by us."

Budhiraja, whose cross-examination will continue on Friday, said this transaction was not made to show any favour to Chandolia who was then private secretary to Raja. "No one from DB Realty or Swan Telecom Pvt Ltd knew about this transaction between Chandolia and Associated Hotels (P) Ltd. Shahid Balwa and Vinod Goenka never discussed this matter with me," he said.

He said that during the recording of statement by CBI's investigating officer, he had said this was a bonafide transaction but the officer did not record this.

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Trai opposed spectrum auction: DoT official tells court