The document discusses the 2G spectrum scam that occurred in India in 2008. It describes how the then telecom minister, A. Raja, issued 2G licenses to private telecom companies at throwaway prices, ignoring recommendations to auction licenses. This caused an estimated loss of 1.76 lakh crore rupees to the government. Key people involved included Raja, Kanimozhi, Shahid Balwa, and executives from companies like Swan Telecom and Unitech. The scam had negative effects on investor sentiment in telecom stocks. The government took remedial measures including setting up a CBI investigation and Raja resigning and being arrested.

1. 2G SCAM
SUBMITTED TO SUBMITTED BY
BRIG P.K. HOOGAN ARSH KOUL
ISHNEET

3. WHAT IS 2G
 2G means second-generation wireless telephone
technology.
 Second generation 2G cellular telecom networks
were commercially launched on the GSM standard
in Finland in 1991.
 2G introduced data services for mobile, starting
with SMS text messages.

4. WHAT IS 2G SCAM
 2G licenses issued to private telecom players at throwaway
prices in 2008
 Spectrum scam has cost loss to the government
Rs. 1.76 Lakh crore
 Rules and procedures flouted while issuing licenses.

5. WHO CAUSED IT?
 The then telecom minister Andimuthu Raja
caused the 2G scam
 A Raja caused the loss of $40 billion to the
Government by selling the Licenses of network
to the private players without following any
rules and regulations.

6. ALLEGATIONS
CHEAP TELECOM LICENCES
 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

7. 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 forRs.1 537 crore, sold 45% stake to
Etisalat for Rs.4 200 crore
 UnitechWireless got license for Rs.1661 crore, sold 60%
stake for Rs.6 200 crore
 All nine companies paid Dot only Rs.10,772 crore for 2G
licences

8. REPORTS
 Telecom secretary Dinesh Kumar Mathur has told
the CBI that despite being the top most officer in the
DoT he was completely unaware of two
controversial letters Raja wrote to Manmohan Singh
endorsing his 2G allocation policy.

9. PEOPLE INVOLVED
 Kanimozhi who was named as co-conspirator with A Raja
 Shahid Balwa the promoter of the swan telecom who according
to CBI had central role in this scam
 Unitech chief Sanjay Chandra who was involved for cheating
 Three top senior executives of ADAG : Mr Gautam Doshi
, Mr Hari Nair , Mr Surendra Pipri

10.  Former telecom secretory Siddarth Behura who shut the
counters for other telecom players
 At the last Mr R.K.Chandolia who was the personal
secretary of Raja .
 All of them have either been question by the CBI or are
prospective suspects in the scam

11. A RAJA SHAHID KANIMOZHI
BALWA
R K CANDOLIA SIDDARTH NEERA RADIA
BEHRUA

12. COMPANIES INVOLVED
 Allianz Infra
 Aircel
 Dishnet Wireless
 Loop Mobile
 Sistema Shyam Mobile (MTS) – Sistema Mobile Russia
 Reliance Communications
 S Tel
 Swan Telecom
 Tata Tele Services
 Unitech Group
 Videocon Telecommunications Limited
 Vodafone Essar
 Virgin Mobile India

13. MEDIA PERSON INVOLVED
 Neera Radia, a former airline entrepreneur turned corporate
lobbyist whose conversations with politicians and corporate
entities were recorded by the government authorities. The
contents were later leaked by unknown parties creating the Nira
Radia tapes controversy
 Barkha Dutt, a journalist who works with NDTV also was
involved in the lobbying of ministers in the government, but
was not given any coverage or publicity in this matter by her
fellow colleagues
 Vir Sanghvi, a Hindustan Times editor alleged to have edited
articles to reduce blame in the Nira Radia tapes

14. EFFECTS
 The investor sentiment has been negative and telecom stocks
plunged in India.
 The other side of the argument is that the telecom sector is
seeing a lot of growth opportunities and going ahead there will
be multiple avenues for the telecom service providers to boost
their revenues.

15.  The telecom companies are now looking at data services
to enhance their market share and voice services will
eventually become a matter of complimentary services.
 The advent of 3G has also considerably lifted investor
interests in the stocks and there is a hope that innovative
business models and VAS will be the game changers for
the telecom stocks

16. REMEDIAL MEASURES
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 Scam.
 € A Raja also arrested by the Police
 CBI is also interacting with the brothers of A Raja
and also some business men

17. MATERIAL
METHOD
1. INCOME TAX
2. ED
1. AUDIT
2. DOCUMENTATION
2G
SCAM
1. CAG
MANAGEMENT +
MANPOWER

18. INDIA IN WORLDS EYE
 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

19. TOTAL AMOUNT WITH A RAJA
AS PER THE REPORTS OF CBI, A.RAJA HAS
GOT 7 800 CRORE IN HIS SWISS BANK
4 ACCOUNTS