2G SCAM

CURRENT AFFAIRS UNIT 1 NIKITA MISTRY 3MAMC

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.

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.

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.

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(Telecom Regulatory Authority Of India) , Law Ministry, Finance Ministry TRAI had recommended auctioning of spectrum at market rates

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

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.

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

 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

A RAJA

SHAHID BALWA

KANIMOZHI

R K CANDOLIA

SIDDARTH BEHRUA

NEERA RADIA

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

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

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.

 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

REMEDIAL MEASURES
Government of India take some important steps looking forward in this Scam: et up a special branch of CBI to look into the S matter. Telecom Minister resigns his post after Scam. Raja also arrested by the Police A CBI is also interacting with the brothers of A Raja and also some business men

METHOD

MATERIAL

1. AUDIT 2. DOCUMENTATION

1. INCOME TAX 2. ED

2G SCAM

1. CAG

MANAGEMENT + MANPOWER

INDIA IN WORLDS EYE

Poor Administration of India is just because of the poor political leaders of our country.
hey used to do some unofficial work for T

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

TOTAL AMOUNT WITH A RAJA

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