Contents• About 2G.• What is 2G spectrum scam?• Who are Involved?• Media Responses & Market Response• Steps Taken by Govt.• Political Response to Scam.• Conclusion & Your Thoughts.
What is 2G?• ‘2G’ means: “Second-Generation Wireless Telephone Technology”• 2G spectrum was the revolutionary technology in theirtime, it comes with some benefits. 1. SMS facility was first started with 2G. 2. Safe for the use, means security level was high. 3. Environmental conditions was very good for this network & no network shortage was there.
history of 2G• 2G spectrum technology was first launched in 1991 in Finland only in the GSM mobile phones but this is not the latest technology that we are using.• As 2G was launched in 1991 so many other technologies overcome it with 2.5G, 2.75G technologies but the latest technology in present world is 3G.
What do you mean by 2G sCam?1. T 2G spectrum scam inv v officias a minist s in t he ol ed l nd er he G er ov nmentofIndiailegal under r mobil t ephony l ly chaging e el compa forfr nies equencyal t l locaion icenses, w t w d hich hey oul use t cr t 2Gsubscr ions forcel phones. o eae ipt l2. A ding t ar tsubmited byt Comptolera A or ccor o epor t he r l nd udit G a ba on moneycolect fr 3 l ener l sed l ed om G icenses, t l t he oss o t exchequerw s he a176,3 cr e (US$3 .27bilion). T issuing oft 2Gl 79 or 8 l he he icenses occured in 20 8 butt sca ca t r 0 , he m me opubl not w t India Income T x Depat inv igaed pol ica l ic ice hen he n a rment est t it l obbyistNiir R diaa t a a nd heSupr Cour ofIndiat Subr ma m Sw mys compl int on r d [W h Case t W it eme t ook a nia a a s ecor it ype: r ePet ion (Civil it ),Case No:1 0, Year 1 ]. T ca det il oft ma PILfil w h t supr :201 he se a s he in ed it he emecour is Type: W it Pet ion (Civil t r e it ),Case No:423, Year 0. :201
Who is this Person? One of the main person behind the India’s Largest Corporate Fraud.A. Raja is an Indian politician from the Dravida Munnetra Kazhagam(DMK) political party. He is a member of the 15th Lok Sabha representing the Nilgiris constituency of Tamil Nadu.B. Raja was first elected to the Lok Sabha in 1996 and first served as minister of state from 1999 to 2003. On being re-elected to the Lok Sabha in 2004, he became a cabinet minister in the UPA government. In 2007, he became cabinet minister for communication and information technology.C. On being re-elected in 2009 he was again appointed cabinet minister for communication and information technology until being tainted in the 2G spectrum scam and resigning in 2010.
What are the CharGes onformer teLeCom minister araJa?CHEAP TELECOM LICENSES Entry fee for spectrum licenses in 2008 pegged at 2001 prices Mobile subscriber base had shot up to 350 million in 2008 from 4million in 2001.NO PROCEDURES FOLLOWED• Rules changed after the game had begun.• Cut-off date for applications advanced by a week.• Licenses issued on a first-come-first-served basis. • No proper auction process followed, no bids invited. • Raja ignored advice of TRAI, Law Ministry, Finance Ministry. • TRAI had recommended auctioning of spectrum at market rates.
faVouritism, CorPorates enCashPremium• Unitech, Swan Telecom got licenses without any prior telecom experience .• Swan Telecom given license even though it did not meet eligibility criteria.• Swan got license for Rs.1537 crore, sold 45% stake to Etisalat for Rs.4200 crore.• Unitech Wireless got license for Rs. 1661 crore, sold 60% stake for Rs. 6200 crore.• All nine companies paid DOT only Rs.10,772 crore for 2G licences.
CorPorate PersonaLitiesinVoLVedAnil Ambani - Reliance Group (ADAG)Shahid Balwa - DB Realty and DB Etisalat (Swan Telecom) Vinod Goenka - Dynamix Group Venugopal Dhoot - Videocon GroupPrashant Ruia - Essar GroupAll of them have either been question by the CBI or are prospective suspects in the scam.
media Persons and Lobbyists inVoLVed Nira Radia, a former airline entrepreneur turned corporate lobbyist whose conversations with politicians and corporate entities were recorded by the government authorities and leaked creating the “Nira Radia tapes controversy”. Barkha Dutt, an NDTV journalist alleged to have lobbied for A.Rajas appointment as minister. Vir Sanghvi, a Hindustan Times editor alleged to have edited articles to reduce blame in the Nira Radia tapes.
imPaCt on stoCk markets• The first casualty in Stock Markets once Raja was arrested was DB Realty.• DB Realty had given 200+ crores to Kalaignar TV (owned by Karunanidhis Wife) .• The news led to 20% fall in the stock prices of DB Realty.• Sun TV had its shares fall by 10% on the next day following rumours of Kalanidhi Maran having stake in Kalaignar TV.• Sun TV COO refused the allegations. Swan Telecom Chief Balwa was arrested on Feb 8 and this led to rumours of links with Anil Ambanis Reliance ADAG and it led to 20% fall of his stocks. Its reported that nearly 2 Billion USD was eroded from his stocks .Spicejet stocks went down after reports of investigation on Marans recent takeover of Spicejet.
shortfaLL of moneyA. 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$333.53 million).  Shortly thereafter, the board sold 45% of the company to Etisalat for 4,200 crore (US$911.4 million). Similarly, a company formerly invested in real estate and not telecom, the Unitech Group, purchased a license for 1,661 crore (US$360.44 million) and the company board soon after sold a 60% stake in their wireless division for 6,200 crore (US$1.35 billion) to Telenor
reLationshiP betWeen media & GoVernment• Media sources such as OPEN and Outlook reported that Barkha Dutt and Vir Sanghvi knew that corporate lobbyist Nira Radia was influencing the decisions of A. Raja.• The critics alleged that Dutt and Sanghvi knew about corruption between the government and the media industry, supported this corrupt activity, and suppressed news reporting the discovery of the corruption.
ratan tata Petitions oVer taPe LeakThe tapes leaked to the public include conversations between Nira Radia and Ratan Tata. Tata petitioned the government to acknowledge his right to privacy and demanded accountability for the leak, with the Minister for Home Affairs, CBI, Indian Income Tax Department, the Department of Telecommunication, and the Department of Information Technology as respondents in the petition.
Persons inVoLVed in 2G sPeCtrum sCam• Nira Radia• M.Karunanidhi• A Raja (Telecom minister)• Arun Jaitley• Barkha dutt (Journalist)• Arun Shourie• Pramod Mahajan
CorPorations inVoLVedUnitech Group:A real estate company entering the telecom industry with its 2G bid; sold60% of its company stake at huge profit to Telenor after buying licensing(Including land values properties for towers).Swan Telecom:It sold 45% of its company stake at huge profit to EmiratesTelecommunications Corporation (Etisalat) after buying licensing.Videocon Telecommunications LimitedReliance CommunicationsSistema Shyam Mobile (MTS) – Sistema Mobile RussiaTata CommunicationsVodafone EssarLoop MobileS TelAllianz Infra
stePs taken by GoVernment after sCamGovernment of India take some important stepslooking forward in this Scam:• Set up a special branch of CBI to look into the matter.• Telecom Minister resigns his post after Scam.• A Raja also arrested by the Police.• CBI is also interacting with the brothers of A Raja and also some business men.
resPonse to sCam• In early November 2010 Jayalalithaa accused the Tamil Nadu state chief minister M Karunanidhi of protecting A.Raja from corruption charges and called for A. Rajas resignation. By mid November A.Raja resigned.• In mid November the comptroller Vinod Rai issued show- cause notices to Unitech, S Tel, Loop Mobile, Datacom (Videocon), and Etisalat to respond to his assertion that all of the 85 licenses granted to these companies did not have the up-front capital required at the time of the application and were in other ways illegal.
resPonse to sCam• In response to the various allegations , the Govt of India has replaced the then incumbent Telecom minister A Raja with Kapil Sibal who has taken up this charge in addition to being the Union minister for Human Resources Development.Mr Sibal contends that the "notional" losses quoted are a result of erroneous calculations and insists that the actual losses are nil.
resPonse to sCam• The CBI conducted raids on Raja and four other telecom officials - former telecom secretary Siddharth Behura, Rajas personal secretary R K Chandolia, member telecom K Sridhar and DoT deputy director general A K Srivastava on 8 December 2010.• Raja, Behura and Chandolia were arrested on Feb 2nd 2011.• The Supreme Court on 2ND FEB 12 ordered the government to revoke all 122 telecoms licences issued under a scandal-tainted 2008 sale.
resPonse to sCam• UNITECH WIRELESS -- 22 licences• LOOP TELECOM PRIVATE LTD -- 21 licences• VIDEOCON TELECOMMUNICATIONS -- 21 licences• IDEA CELLULAR -- 13 licences• TATA TELESERVICES -- 3 licences• MOSTELY AFFECTED TELECOM COMPANY IS UNINOR
CorruPted administration of indiaIf we talk about the Administration of India we all must say it is not a well maintained or a well centralized Administration as comparison to other Asian countries. Poor Administration of India is just because of the poor political leaders of our country. They used to do some unofficial work for the sake of money, this makes Administration of India weaker. This is not the only example which makes Administration of India affected badly there are lots of other factors which makes it worse.