The polit bureau of the CPI(M) said in a statement on Wednesday that the prime minister had only tarnished his image by "resorting to this blatant act of favouritism on behalf of big business". It asserted that the PMO should have no right whatsoever to change in any manner the decisions taken by the communications ministry to recover dues owed by defaulting telecom companies.

Demanding presidential intervention to ensure that the PMO is not allowed to manipulate policy to "enrich and protect" defaulting companies, the polit bureau said the powerful telecom companies owed to the government a staggering Rs 4,500 crore as licence fee.

"As a caretaker government, any move to dilute the policy would mean that corrupt practices are being indulged in view of theelections," the polit bureau said.

The statement further said that the communications ministry was right in demanding that cellular phone operators pay the licence fees contracted by them, failing which their bank guarantees would be encashed. So far over Rs 1,000 crore defaulted payments have been recovered, it stated.

Opposing Jagmohan's abrupt transfer, the Congress said it was done to benefit some telecom companies. The party said the caretaker government had no right to do so.

Party spokesman Ajit Jogi said if someone needed to be shifted from the government, it was defence minister George Fernandes who, he said, had failed in his duty to protect the borders.

"Jagmohan paid the price for initiating tough action againt companies having links with some people in the government," Jogi said and added that if the Congress was returned to power in the coming Lok Sabha polls, it would review all the decisions taken by the BJP-led government and take corrective steps.

Janata Dal was equally vehement incriticising Jagmohan's abrupt transfer. Senior JD leader S Jaipal Reddy said Jagmohan's shifting had "major policy ramifications" and was totally improper and unprecedented. He said Jagmohan paid the price for insisting that the telecom operators fulfil their contractual and legal obligations. The policy change was bound to open a Pandora's box for the telecom ministry, he cautioned.

On his part, however, Jagmohan sought to skirt the issue of defaulting operators when reporters queried him on Wednesday. "You ask the new minister," he quipped looking unfazed.

Jagmohan also denied that he was removed because of pressure from the mighty telecom companies. "Nothing of that sort has happened," he remarked to inquisitive newspersons.

Jagmohan, however, did not join his new ministry on Wednesday as he was busy clearing urgent files in the telecom ministry. He is likely to join on Thursday.