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This presentation gives the details of the 2G spectrum scam done in india. Its a brief and detailed presentation along with the notes in each slides which provide the extra information

This presentation gives the details of the 2G spectrum scam done in india. Its a brief and detailed presentation along with the notes in each slides which provide the extra information

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  • Story of 2G Scam:Raja arranged the sale of the 2G spectrum licenses below their market value. In 2007, Telecom Regulatory Authority of India (TRAI) had given its recommendations on pricing of 2G spectrum to A.Raja but he did not place the recommendations before the full Telecom Commission which, among others, would have included the Finance Secretary.[13] In November 2007 Prime Minister of IndiaDr Manmohan Singh had written a letter to telecom minister A. Raja directing him to ensure allotment of 2G spectrum in a fair and transparent manner and to ensure license fee was properly revised. Raja wrote back to the Prime Minister rejecting many of his recommendations.[14] In the same month "Finance Ministry" wrote letter to "Department of Telecom" raising concerns over the procedure adopted by it[15] but "Department of Telecom" went ahead with its plan of giving 2G licenses. It proponed the cut-off date to September 25, from October 1, 2007. Later on the same day, DoT posted an announcement on its website saying those who apply between 3.30 and 4.30 pm would be issued licenses in accordance with the said policy.[16] Companies like Unitech & Swan Telecom got licenses without any prior telecom experience.
  • Continues : May 2009 an NGO Telecom Watchdog files complaint to the Central Vigilance Commission (CVC) on the illegalities in the spectrum allocation to Loop Telecom. Later another complaint was filed to the CVC by ArunAgarwal, highlighting grant of spectrum to Swan Telecom at throwaway prices, CVC directs CBI to investigate the irregularities in allocation of 2G spectrum. The scam came to public notice when the Indian Income Tax Department was investigating political lobbyist NiraRadia. The government's investigation and the government's reactions to the findings in the investigation was the subject of debate, as were the nature of the Indian media's reactions. The Central Bureau of Investigation (CBI) says that several rules were violated and bribes were paid to favor certain firms while awarding 2G spectrum licenses. The audit report of Comptroller and Auditor General of India says that several licenses were issued to firms with no prior experience in the telecom sector or were ineligible or had suppressed relevant facts. The case was filled and investigated from them till now its trail is holding in court.
  • Chronology of Events and InvestigationMay, 2007: A Raja takes over as Telecom Minister. Aug, 2007: Process of allotment of 2G spectrum for telecom along with Universal Access Service (UAS) Licenses initiated by the Department of Telecommunications (DoT).Sep 25, 2007: Telecom Ministry issues press note fixing deadline for application as October 1, 2007.Oct 1, 2007: DoT receives 575 applications for UAS licenses of 46 companies. Nov 2, 2007: The Prime Minister writes to Raja directing him to ensure allotment of 2G spectrum in a fair and transparent manner and to ensure that license fee was properly revised. Raja writes back to the Prime Minister rejecting many of his recommendations.Nov 22, 2007: Finance Ministry writes to DoT raising concerns over the procedure adopted by it. Demand for review rejected.Jan 10, 2008: DoT decides to issue licenses on first-come-first-serve basis, preponing the cut-off date to September 25, from October 1, 2007. Later on the same day, DoT posted an announcement on its website saying those who apply between 3.30 pm and 4.30 pm would be issued licenses in accordance with the said policy. 2008: Swan Telecom, Unitech and Tata Teleservices sell off a part of their stakes at much higher rates to Etisalat, Telenor and DoCoMo, respectively. May 4, 2009: An NGO Telecom Watchdog files complaint to the Central Vigilance Commission (CVC) on the illegalities in the spectrum allocation to Loop Telecom.May 19, 2009: Another complaint was filed to the CVC by ArunAgarwal, highlighting grant of spectrum to Swan Telecom at throwaway prices.2009: CVC directs CBI to investigate the irregularities in allocation of 2G spectrum.July 1, 2009: Delhi HC holds advancing of cut-off date as illegal on a petition of telecom company S-Tel. Oct 21, 2009: CBI registers a case and files an FIR against “unknown officers of DoT and unknown private persons/companies under various provisions of IPC and Prevention of Corruption Act.Oct 22, 2009: CBI raids DoT offices. Nov 16, 2009: CBI seeks details of taped conversation of corporate lobbyist NiiraRadia to find out involvement of middlemen in the grant of spectrum to telecom companies.Mar 13, 2010: SC upholds Delhi HC verdict on cutoff date advancement as illegal Mar 31, 2010: CAG says that there was large scale irregularities in the spectrum allocation.Apr 2, 2010: CBI DIG (Investigations) VineetAgarwal and DG I-T (Investigations) Milap Jain, who were investigating the case, transferred.
  • Continues..May 6, 2010: Telephonic conversation between Raja and NiiraRadia made public by the media. May, 2010: NGO Centre for Public Interest litigation moves the Delhi High Court seeking investigation into the scam by SIT or CBI.May 25, 2010: Delhi HC dismisses the petition.Aug, 2010: Appeal filed in the Supreme Court against the High Court’s order.Aug 18, 2010: HC refuses to direct the Prime Minister to decide on a complaint by Janata Party chief Swamy seeking sanction to prosecute Raja for his involvement in 2G scam.Sept 13, 2010: SC asks government, Raja to reply within 10 days to three petitions filed by CPIL and others alleging there was a 70,000 crore (US$15.4 billion) scam in the grant of telecom licenses in 2008.Sept 24, 2010: Swamy moves SC seeking direction to the PM to sanction prosecution of Raja.Sept 27, 2010: Enforcement Directorate informs SC of probe against firms suspected to have violated FEMA. Says can’t deny or confirm now Raja’s involvement in the scam.Oct 8, 2010: SC asks government to respond to CAG report about the scam. Oct 21, 2010: Draft reports of CAG placed before the Supreme Court.Oct 29, 2010: SC pulls up CBI for its tardy progress in the investigations into the scam. Nov 10, 2010: CAG submits report on 2G spectrum to government stating loss of 176,000 crore (US$38.72 billion) to exchequer.Nov 11, 2010: DoT files affidavit in SC saying CAG did not have the authority to question the policy decision as per which licence were issued to new players in 2008.Nov 14, 2010: A Raja resigns as Telecom Minister Nov 15, 2010: KapilSibal given additional charge of Telecom Ministry. Nov 20, 2010: Affidavit on behalf of PM filed in Supreme Court. Rejects charge of inaction on Swamy’s complaint. Nov 22, 2010: CBI tells SC it will file charge sheet in the case within three months.Nov 22, 2010: CBI tells SC role of corporate lobbyist NiiraRadia would be questioned by it.Nov 24, 2010: SC reserves verdict on Swamy’s plea seeking direction to PM for grant of sanction to prosecute Raja.Nov 25, 2010: SC ticks off CBI for not questioning Raja.Nov 29, 2010: CBI files status report on 2G spectrum scam probe.Nov 30, 2010: SC questions CVC P J Thomas’s moral right to supervise CBI’s probe into 2G spectrum scam as he himself was Telecom Secretary at that point of time. Dec 1, 2010: SC directs original tapes containing conversation between corporate lobbyist NiiraRadia and others be handed over to it.Dec 1, 2010: Raja questions CAG findings in the SC.Dec 2, 2010: Government places recorded tapes in the SC.Dec 2, 2010: SC comes down heavily on Raja for bypassing and overruling PM’s advice to defer allocation of 2G spectrum by a few days.Dec 8, 2010: SC favors including in the probe period since 2001 when first-come-first-serve was the norm for spectrum allocation.Dec 8, 2010: SC asks Centre to consider setting up of a special court to try 2G spectrum scam case.Dec 8, 2010: ED submits report. Says money trail covers 10 countries, including Mauritius.Dec 14, 2010: Another PIL in SC seeking cancellation of new telecom licenses and 2G spectrum allocated during Raja’s tenure.Dec 15, 2010: Swamy files petition in a Delhi court seeking his inclusion as a public prosecutor in 2G spectrum case.Dec 15, 2010: Swamy mentions in complaint that Raja favoured “ineligible” private companies Swan Telecom Pvt Ltd and Unitech Wireless Ltd in allocating the spectrum.Dec 16, 2010: SC decides to monitor the CBI inquiry Jan 4, 2011: Swamy moves SC seeking cancellation of 2G spectrum licenses.Jan 10, 2011: Supreme Court issues notice to Centre on the plea seeking cancellation of 2G licenses. Also issues notices to 11 companies which allegedly did not fulfill the roll-out obligations or were ineligible.Jan 30, 2011: Government’s decision to regularize licenses of the companies which failed to meet the deadline for roll-out obligation challenged in the Supreme Court.Feb 2, 2011: Raja, former Telecom Secretary SiddarthaBehura and Raja’s former Personal Secretary R K Chandolia arrested and next day they were remanded in CBI custody.Feb 8, 2011: Raja remanded to two more days of CBI custody. Behura and Chandolia sent to judicial custody.Feb 8, 2011: ShahidUsmanBalwa, promoter of Swan Telecom, arrested by CBI.Feb 10, 2011: SC asks CBI to bring under its scanner corporate houses which were beneficiaries of the 2G spectrum. Raja remanded to CBI custody for four more days by a special CBI court along with Balwa.Feb 14, 2011: Raja’s CBI custody extended for three more days. Balwa’s custody extended for four days.Feb 17, 2011: Raja sent to Tihar Jail under judicial custody.Feb 18, 2011: Balwa sent to judicial custody.Feb 24, 2011: CBI tells a Delhi court that Balwa facilitated transaction to Kalaignar TV.Feb 28, 2011: Raja seeks judicial proceedings through video conferencing stating that he faces threat to life from fellow prisoners.Mar 1, 2011: CBI tells SC that 63 persons are under scanner. Raja allowed by CBI court to appear before it via video-conferencing.Mar 14, 2011: The Delhi High Court sets up special court to deal exclusively with 2G cases. Balwa also allowed appearing via video-conferencing.Mar 17, 2011: SC reserves order on cancellation of 2G licenses. It rejected companies' claim saying that Principle of Estoppel can't be applied to protect illegality. Mar 29, 2011: SC permits CBI to file charge sheet on April 2 instead of March 31. Two more persons — AsifBalwa and Rajeev Agarwal — arrested.Apr 2, 2011: CBI files its first charge sheet in the 2G spectrum allocation scam. Apr 25, 2011: CBI files second charge sheet and court issues summons to Kanimozhi, Sharad Kumar and KarimMorani taking cognizance of the charge sheet. May 6, 2011: Kanimozhi and Sharad Kumar appear before court and file bail pleas while Morani sought exemption from appearance on medical ground. May 6, 2011: SC issues contempt notice to Sahara India managing director Subroto Roy and two others for alleged interference in the ongoing ED investigation into the 2G spectrum case. May 7, 2011: Special CBI Court reserves order on Kanimozhi and Sharad Kumar’s bail applications.May 14, 2011: Special CBI Court defers order on their bail pleas for May 20.May 20, 2011: Special CBI Court rejects bail pleas of Kanimozhi and Sharad Kumar and orders their forthwith arrest saying that there was a possibility of witnesses being influenced considering the magnitude of the crime.June 8, 2011: Delhi HC rejects bail pleas of Kanimozhi and Sharad Kumar citing that there are certain prima facie evidences against the accused and they may be in a position to influence the 2G probe.June 20, 2011: SC rejects Kanimozhi’s bail plea July 25, 2011: Arguments on Charge begins. Raja seeks to make Prime Minister and former finance minister P Chidambaram as witness.Aug 26, 2011: Special CBI court allows Subramanian Swamy to argue his own case (mainly to address the possible loop holes in CBI investigation of the case).Aug 30, 2011: ED orders freezing of accounts, attachment of properties worth 223 crore (US$49.06 million) of five companies mainly related to DB Realty under the provisions of Prevention of Money Laundering Act (PMLA).Sept 15, 2011: Swamy pleads before special CBI court that P Chidambaram should be made co-accused.Sept 22, 2011: CBI defends Chidambaram in SC, blames DoT for all wrongs.Sept 26, 2011: CBI moves plea for framing fresh charge for criminal breach of trust against Raja, Chandolia and Behura. Sept 29, 2011: CBI says role of Anil Ambani being probed, gives a virtual clean chit to Tata and Videocon group. Oct 9, 2011: CBI files FIR against Maran and his brother in Aircel-Maxis deal. Oct 10, 2011: SC reserves order against Subramanian Swamy’s plea for a probe into Home Minister Chidambaram’s role in the 2G scam. Oct 22, 2011: Special CBI Court finds prima facie evidence to put on trial all 17 accused including Raja on various counts like criminal conspiracy, breach of trust, cheating and forgery. Nov 3, 2011: Special CBI court dismisses bail pleas of all the 8 applicants (including Kanimozhi).Nov 8, 2011: Special CBI court orders CBI to give copy of file on sale of equity by telecom companies (for investigating P Chidambaram's involvement) to Swamy.Nov 9, 2011: Delhi HC refuses to grant interim bail to KarimMorani on health grounds wondering Why everybody falls sick once he is in custody? HC issues notice to the CBI on its reply on the bail pleas of the five accused by December 1. Nov 11, 2011: Trial of the 17 accused begins in Patiala House special CBI court. Nov 14, 2011: UPAgovt moves SC seeking to restrain Dr Subramanian Swamy from making public allegations against the UPA leadership (especially Home MinisterP Chidambaram and UPA Chairperson Sonia Gandhi) in the 2G scam case.Nov 22, 2011: The Special CBI court shifts the trial to the Tihar Jail complex following a Delhi high court order.Nov 23, 2011: SC grants bail to 5 corporate executives – Sanjay Chandra of Unitech Wireless, VinodGoenka of Swan Telecom as well as Reliance Group's GautamDoshi, SurendraPipara and HariNayar. Nov 28, 2011: HC grants bail to DMK MP Kanimozhi and 4 others namely KarimMorani, Sharad Kumar and AsifBalwa and Rajeev Agarwal. The court upheld the principle of parity under Section 144 of the Constitution of India that upholds an order passed by the SC. Nov 29, 2011: The special CBI court grants bail to ShahidBalwa citing principle of parity that SC and HC have already granted bail to 10 other accused. Dec 01, 2011: The special CBI court grants bail to A. Raja's ex-private secretary R. K. Chandolia and puts additional condition to not visit the DoT without prior permission of the court.Dec 02, 2011: Taking a suomotu cognizance, HC stays bail given by trial court to R K Chandolia.Dec 07, 2011: SC stays HC's suomotu order against Chandolia's bail.Dec 08, 2011: The special CBI court accepts Swamy's plea against Chidambaram to become a witness in his own complaint and examine 2 witnesses, including senior CBI official and senior Finance Ministry official.Dec 12, 2011: CBI files third charge sheet naming Essar Group promoters Ravi Ruia, his son AnshumanRuia and its director (Strategy and Planning) VikasSaraf, Loop Telecom promoters KiranKhaitan (sister of Ravi Ruia) and her husband I P Khaitan. It also charge sheetsLoop Mobile India Ltd, its subsidiary Loop Telecom Pvt Ltd and Essar Tele Holding. Dec 16, 2011: HC rejects bail plea of SiddharthBehura saying "he was the ‘perpetrator’ of the illegal designs of Raja and would not claim benefit of parity with 10 others released on bail".Feb 02, 2012: The Supreme court of India cancelled all 122 licenses allotted during A Raja tenure and imposed Rs 5 crore(US$ 1,018,122) fine on Unitech, Swan & Tata Teleservices. It also imposed a fine of Rs 50 lakh on Loop Telecom Pvt Ltd, S-Tel, Allianz Infratech and SistemaShyam Tele Services Ltd. It also asked trial court to decide whether Home Minister P Chidambram should be made co-accused in 2G scam. Feb 04, 2012: The special court of Justice O.P Saini dismissed the plea of Subramanian Swamy to make then Finance Minister P.Chidambram as co-accused in the 2G scam 

2 g spectrum 2 g spectrum Presentation Transcript

  • By Sushant Palsra
  • Introduction • Defination: 2G (Second Generation Telecommunication Standard) is means the wireless mobiles which was introduced in second generation. Spectrum means bandwidth which was given by government of India. Now 2G is in operation and 4G is expected. • 2G Scam: It means issuing of 2G licenses to private telecom companies at low prices. The companies paid fewer amounts to the government which hits the profit and revenue of the government. It was done by bribing the Department of Telecom (DoT).
  • 2G Scam in India 2008 • India is divided into 22 telecoms zones and there are a total 281 zonal licenses in the market. These licenses are given by Ministry of telecom to the telecom players in the market. After acquiring the license the telecom companies start providing 2G services to the customers. • The 2G spectrum scandal involved officials in the government of India illegally undercharging mobile telephony companies for frequency allocation licenses, which they would use to create 2G subscriptions for cell phones • In 2008, 122 new 2G spectrum licenses were given to telecom companies at the price of 2001 and on first come first serve basis. At that time A.Raja was the telecom minister of India.
  • Continues… • Raja arranged the sale of the 2G spectrum licenses below their market value. Swan Telecom, a new company with few assets, bought a license for 1,537 crore (US$338.14 million). The Unitech Group, purchased a license for 1,661 crore (US$365.42 million).Nine companies purchased licenses and collectively they paid the Ministry of Communications and Information Technology's telecommunications division 10,772 crore (US$2.37 billion). • The amount of money expected for this licensing by the Comptroller and Auditor General of India was 176,000 crore (US$38.72 billion). The Central Bureau of Investigation (CBI) says that several rules were violated and bribes were paid to favor certain firms while awarding 2G spectrum licenses. The audit report of Comptroller and Auditor General of India says that several licenses were issued to firms with no prior experience in the telecom sector or were ineligible or had suppressed relevant facts.
  • Parties accused of involvement Politicians involved • A. Raja – the Minister of Communications and Information Technology who sold the licenses • M. K. Kanimozhi – Rajya Sabha MP Bureaucrats involved • Siddharth Behura – Former Telecom Secretary • RK Chandolia – Raja's private secretary Corporate Executives involved • Corporates named as accused and/or beneficiary of the 2G spectrum scam in the chargesheet filed by CBI in the Special Court • Vinod Goenka – Swan Telecom promoter
  • Continues.. • Sanjay Chandra – Managing Director of Unitech Wireless (Tamil Nadu) Ltd • Gautam Doshi – Managing Director of Reliance Anil Dhirubhai Ambani Group • Hari Nair – Senior vice-president of Reliance Anil Dhirubhai Ambani Group • Surendra Pipara – Senior vice- President of Reliance Anil Dhirubhai Ambani Group • Ravi Ruia - Vice-Chairman of Essar Group • Anshuman Ruia - Diector of Essar Group • Vikas Sara - Director for strategy and planning Essar Group • IP Khaitan - Promotor Loop • Kiran Khaitan - Promotor Loop • Shahid Balwa – Swan Telecom promoter • Sharath Kumar – Managing Director of Kalaignar TV
  • Continues… • Rajiv Agarwal and Asif Balwa (younger brother of Shahid Balwa) – Chief executives of Kusegaon Fruits and Vegetables Film and Entertainment persons involved • Karim Morani – Cineyug Media and Entertainment Ltd’s Director Corporations accused • Companies named in the charge sheet filed by Central Bureau of Investigation (CBI) in the Special court: • Unitech • Reliance Telecom • Swan Telecom • Loop Telecom Pvt Ltd • Loop Mobile India Ltd • Essar Tele Holding • Essar (Parent group of Essar Tele Holding)
  • Feb 02, 2012: Supreme Court Decision • On February 02, 2012 Supreme Court of India quashed all 122 spectrum licenses granted during the tenure of former communications minister A Raja. • The allocation of 2G spectrum was described by Supreme Court as "unconstitutional and arbitrary". The court imposed fine of Rs. 5 crore on Unitech Wireless, Swan telecom and Tata Teleservices and Rs. 50 lakh fine on Loop Telecom, S Tel, Allianz Infratech and Sistema Shyam Tele Services Ltd. • The Supreme Court's ruling said the current licenses will remain in place for four months, in which time the government should decide fresh norms for issuing licenses, a lawyer involved in the case said. The apex court said the Central Bureau of Investigation (CBI) would submit its report on the 2G scam probe to the Central Vigilance Commission (CVC). • The Supreme Court said in its order that then telecom minister A. Raja "wanted to favor some companies at the cost of the public exchequer" and listed seven steps he took to ensure this happened.
  • The table below shows list of companies whose license have been cancelled Name of Company Parent Group Number of licenses cancelled Uninor Joint venture between Unitech Group of India and Telenor of Norway Unitech Group 22 Sistema Shyam TeleServices Limited, now MTS India Joint venture between Shyam group of Indian and Sistema of Russia 21 Loop Mobile formerly BPL Mobile Owned by Khaitan Holding Group 21 Videocon Telecommunications Limited Owned by Videocon group of India 21
  • Continues.. Name of Company Parent Group Number of licenses cancelled Etisalat-DB Joint venture between Swan Telecom of India and Etisalat of UAE 15 Idea Cellular Aditya Birla Group of India (49.05%), Axiata Group Berhad of Malaysia (15%) & Providence Equity(10.6%)of USA 13 S Tel Joint venture between C Sivasankaran of India (51%) and Bahrain Telecommunications (49%) 6 Tata Teleservices Owned by Tata Group of India 3