Telecom minister, A Raja has offered to resign in case telecom ministry had violated the law in spectrum allocation to new operators under the existing 2G policy.

Addressing a press conference to clear his position after the Left parties demamding investigation, alleging Rs 600 billion losses to the exchequer in spectrum allocation, the minister said that TRAI recommendations were followed in letter and spirit.

Under attack since the two new telecom players, Swan and Unitech sold stake to foreign companies at huge premium, Raja said it was not an outright sale and the transaction brought foreign direct investment (FDI) into the country.

He said the controversy has arisen because he has managed to break the `undeclared cartel` prior to his taking over as the telecom minister last year and has allowed new players to enhance the competition in the market.

He, however, did not name the players involved in cartelization but hinted towards existing GSM operators.

`The matter has been discussed and clarified with the finance minister, P Chidambaram. In addition, I have also directed the telecom commission to deliberate on the issue of prohibiting sale of equity by promoters`, Raja said.