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What is spectrum scam


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What is spectrum scam

  1. 1. Unethical issues of 2g scamPresented by AnirbanMaity Roll no-11201
  2. 2. What is 2G?‘2G’ means: “Second-Generation Wireless Telephone Technology” 2G is relatively new technology in the field of mobile. 2G is not just a network but a good technology. 2G spectrum was the revolutionary technology in their time, it comes with some more benefits.WHAT IS SPECTRUM SCAM? 2G licenses issued to private telecom players at throwaway prices in 2008 CAG: Spectrum scam has cost the government Rs. 1.76 lakh crore CAG: Rules and procedures flouted while issuing licensesWHAT ARE THE CHARGES ON FORMER TELECOM MINISTER A RAJA?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 4 million in 2001NO 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
  3. 3. 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 Unethical issues • The 2G spectrum scan involved officials and ministers 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. • According to a report submitted by the Comptroller and Auditor General based on money collected from 3G licenses, the loss to the exchequer was 176,379 crore (US$38.27 billion). It shows the misuse of power in lower management & it shows the lack ofcontrol in top level management. For the unethical practices of A.Raja it damaged the goodwillof top level management& that can effect the balance sheet of the organization. There was noproper culture set by the top level management that’s why they change the rule after the gamebegun for their own profit. A.Raja also take kickback money from new companies to provide thelicense in low cost it is a unethical practice by A.Raja. The total system was decentralized .FAVOURITISM, CORPORATES ENCASH PREMIUM 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
  4. 4. OTHERS IN THE NET DMK chief M Karunanidhis daughter and MP Kanimozhi who has been named by the CBI as a co- conspirator with A Raja ShahidBalwa, the promoter of Swan Telecom, who the CBI believes had a central role in the 2G spectrum scam. He has been accused of colluding with former Telecom Minister A Raja by allegedly channelizing kickbacks Raja got from the spectrum sale into the real estate Unitech chief Sanjay Chandra and DB Realty founder VinodGoenka who have been charge sheeted for cheating and conspiracy Three senior executives of Anil Ambani controlled ADAG, GautamDoshi, Hari Nair and SurendraPipara. All these are currently lodged in Tihar Jail Government of India take some important steps looking forward in this Scam • Set up a special branch of CBI to look into the matter. • Telecom Minister resigns his post after Scan. • A Raja also arrested by the Police. • CBI is also interacting with the brothers of A Raja and also some business men.Corrupted Administration Of IndiaPoor Administration of India is just because of the poor political leaders of our country. Theyused to do some unofficial work for the sake of money, this makes Administration of Indiaweaker. This is not the only example which makes Administration of India affected badly thereare lots of other factors which makes it worse. Corruption is the main cause for unethical issuesare happening in corporate world.