The document summarizes the 2G spectrum scam in India, where telecom licenses were illegally issued to companies at substantially lower prices than their market value, resulting in an estimated loss of $38 billion to the exchequer. Key people involved included former telecom minister A. Raja, who is accused of undercharging companies and ignoring regulatory advice. The scam benefited certain companies with political connections who obtained licenses without proper qualifications and later sold stakes at large profits. Several business and political figures were arrested or named in investigations into the corrupt practices. The government took steps to investigate and address the issue.

1. Unethical issues of 2g scam
Presented by
AnirbanMaity
Roll no-11201

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 licenses
WHAT 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 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

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 of
control in top level management. For the unethical practices of A.Raja it damaged the goodwill
of top level management& that can effect the balance sheet of the organization. There was no
proper culture set by the top level management that’s why they change the rule after the game
begun for their own profit. A.Raja also take kickback money from new companies to provide the
license 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. OTHERS IN THE NET
DMK chief M Karunanidhi's 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 India
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. Corruption is the main cause for unethical issues
are happening in corporate world.