The 2G spectrum scam involved the Indian government underpricing radio spectrum licenses for second-generation cellular networks, resulting in a major loss of revenue. In 2008, the government issued licenses at 2001 prices to several companies despite recommendations to auction licenses. It is estimated the scam caused losses of 1.76 lakh crore rupees. Key figures like former telecom minister A. Raja were arrested. The scandal highlighted the need for reforms to prevent influence of private companies and protect civil servants.

1. 2G SPECTRUM SCAM
BY
KIRANMAYI
NBA-05

2. SCAM
In simple terms-
“A dishonest way to make money
by deceiving people”

3. WHAT IS SPECTRUM?
Spectrum is specific range of electromagnetic
wavelength, which is used in radio, TV broadcasting,
mobile communications and internet facility. For AM
540KHz, Cable TV 145-860MHz, 3G 2100MHz,
broadband 2300MHz spectrums are used.

4.  2G is short for second-generation wireless
telephone technology.
 The wavelength between 800-1900MHz is called
2G spectrum, which is useful for mobile
communication technology.

5. WHAT ARE THE USES OF 2G SPECTRUM?
Second generation networks
are digital. They prevent
wavesdropping to some
extent. 2G devices EMIT
LESS RADIATION. Text
messaging, e-mail sending
are made possible due to
digitalization. GPRS,EDGE
technologies are up-grading
in 2G technology. MMS
facility is initiated. Pocket
internet is made possible.

6. WHO ALLOTS 2G SPECTRUM TO
COMPANIES?
As it is national property, people have right over it.
As people have elected their representatives, they
have the power to allocate this resource. As
government is divided for administrative purposes,
it is the bonus of telecommunication ministry to
allocate to various telecom companies (govt can
generate lots of income with this) and the
income generated should be used for welfare of
people.

7.  In 2008,the UPA, issued 122 new telecom licenses to
several domestic companies with little or no
experience in telecom sector, and at a price set in
2001.

9. 2G SPECTRUM CASE: A CHRONOLOGY
 October, 2009: The Central Bureau of Investigation
(CBI) files a first information report (FIR) against
unidentified officials of the department of
telecommunications on the 2G spectrum (airwaves)
auction, based on a reference from the Central Vigilance
Commission.
 November, 2010: Media publishes contents of the
Comptroller and Auditor General (CAG) report on the
2G spectrum auction that after some investigation CAG
said the government suffered a notional loss of Rs.1.76
lakh crore ($40 billion) due to faulty auction procedure
under the tele communications minister Andimuthu
Raja in 2008.

10.  Nov 14, 2010: Raja submits his resignation to
Prime Minister Manmohan Singh in New Delhi.
Claims he did no wrong.
 Nov 16, 2010: CAG report on 2G spectrum
allocation tabled in both houses of parliament.
 Dec 8, 2010: The CBI raids the house of Raja and
premises of former aides Siddharth Behura and
R.K. Chandolia in New Delhi. It also raids houses
and offices of Raja's relatives, associates and some
journalists and social workers in Tamil Nadu
linked to Raja.
 Dec 15, 2010: The CBI raids the houses and
offices of Nira, a corporate lobbyist linked with
Raja. She is subsequently questioned by the CBI
several times.

11.  February, 2011: after clear investigation by CBI it is found
that raja played a major role in scam by issuing 2g licenses to
several companies at 2001 prices ignoring many officials
advices
 Feb 20,2011: The CBI arrests Raja, nira, Chandolia and
Behura.
 April 2, 2011: The CBI files charges against nine people and
three firms -- Raja, Chandolia, Behura, Swan Telecom
promoter Shahid Balwa, director Vinod Goenka, Unitech
director Sanjay Chandra and three officials from the Reliance
Anil Dhirubhai Ambani Group -- Gautam Doshi, Hari Nair
and Surendra Pipara.

14. WHO ALL BENEFITED FROM THIS SCAM ?

15. MEDIA PERSONS ACCUSED
 Nira Radia, a corporate lobbyist whose conversations
with politicians and corporate entities were recorded by
the government and leaked creating the Nira tapes
controversy
 Barkha Dutt, an NDTV journalist alleged to have lobbied
for A. Raja's appointment as minister
 Vir Sanghvi, a Hindustan Times editor alleged to have
edited articles to reduce blame in the Nira tapes

16. RECOVERY
 CPI(M) has reiterated its demand for
cancellation of the licenses of those private
Telco's who got the spectrum through the first
come first served formula and recover the
losses.
 Com. Prakash Karat, General Secretary, CPI
(M) in a statement said:” It is not enough to
arrest a few persons. The Government should
cancel these licenses and auction the
spectrum so that the revenue lost can be
recovered.”
 CPI(M) was the first to point out to this
biggest scam in the country in 2008 itself. Its
continuous exposal and also of the other
opposition parties had compelled the
Government to dismiss Communications
Minister A.Raja and appointment of JPC to
inquire in the matter.

17. RECOVERY!!
 CBI undertook all the assets and properties of 9accused
people and recovered to an extent.
 Government had decided to inflate the prices of
2G,2.50G,2.75G&3G with the same 9 telecom companies
for next three years in order to cover the losses.

18. INITIATIVES TO AVOID SCAMS (REMEDIES):
 Ministers, civil servants relation to be reformed.
 Protection of civil servants. There should be a limit for
transfers within a year.
 Stopping the culture of sponsoring politicians by
businessmen. It should be dealt seriously.
 Searching ways by Election Commission sponsoring for
contestants which can bring ethical and moral persons to
political arena.
 CAREFUL HANDLING OF PRICES OF TELECOM.
 PROPER MAINTAINANCE OF AUCTION AND BID
SALES OF GOVERNMENT PROPERTY

19. CONCLUSION:
 Whenever a scam raises,
Indian government is
dealing with scam rather
than reasons behind it.
 Loopholes in system need
to be corrected in order to
avoid these scams. If these
are not dealt properly so
many scams are on the
way for us.
 A perfect policy making
and new blood in political
veins only can help India to
be out of scam era.