Terming the new telecom policy as a `Rs 50,000 crore telecom scam', she has charged that it had taken place with the full knowledge and connivance of Prime Minister Vajpayee.

In a press release, she said the exchequer would straight away lose Rs 3,800 crore as the licence fee for six months has been waived. The revenue sharing system for cellular phone operators would also result in the government losing Rs 50,000 crore in 10 years. She charged that the seeds for the telecom scam was sown at the PMO and a few individuals in the PMO have garnered huge sums of money as they were acting hand in glove with private operators demanding changes in the telecom policy.

She also said the new policy took shape once Vajpayee tookcharge of communication ministry after the arbitrary transfer of minister Jagmohan. The Attorney General's January 1999 report which advised against making changes in the telecom policy was altered to suit the new policy and the Cabinet was pressurised to approve the new policy`thereby surrendering wholly to the big telecom sharks operating in the four metros.'

"Vajpayee was a good man, a gentleman and an epitome of "Mr Clean" till yesterday. Today, he is caught in the vortex of the Rs 50,000 crore scam", she said. Jayalalitha alleged that eight people, who controlled the cellular phone operations in the four metros, were the major beneficiaries in the multi-crore scam. As a quid pro quo, the operators have assured massive funding of the election campaign of the BJP-led NDA she claimed.

In New Delhi, the Federation of Legislators urged the President to refer the new telecom package to the Chief Justice of the Supreme court and seek clarification on the justification of the package announced by a caretakergovernment. Federation secretary general Vishwa Bandhu Gupta said in a letter to the President, "pending the judicial clarification, the implementation of the cabinet decision regarding the telecom package should be kept in abeyance, as it has resulted in a loss of Rs 1443.58 crores to the national exchequer".

Referring to the Cabinet decision of July 6 about the migration scheme, Gupta said the government had made a serious violation of the constitutional arrangement. Union minister of law, justice and company affairs Ram Jethmalani however, came out in defence of the government. He expressed anguish about the controversy raised by political parties over the new telecom package and appealed to them to put an end to this "cheap election gimmick". Jethmalani wondered why the office of Attorney General has been unnecessarily involved in the controversy. His advice is confidential and if brought into controversy of this kind will only make it difficult for the AG's constitutional duties to be performed, headded.