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• • • • • • • • About 2G. What is 2G spectrum scam? Who are Involved? Media Response. Market Response. Steps Taken by Govt. Political Response to Scam. Conclution & Your Thoughts.
3.What is 2G? • „2G‟ means: “Second-Generation Wireless Telephone Technology” • 2G is relatively new technology in the field of mobile. 1. Safe for the use. . 2. • 2G is not just a network but a good technology. • 2G spectrum was the revolutionary technology in their time. means security level was high. it comes with some more benefits. Environmental conditions was very good for this network & no network shortage was there. SMS facility was first started with network.
2. As 2G was launched in 1991 so many other technologies overcome it with 2.5G.75G technologies but the latest technology in present world is 3G. .History of 2G • 2G spectrum technology was first launched in 1991 in Finland only in the GSM mobile phones but this is not the latest technology that we are using.
. The 2G scandal is unlikely to hurt India's investment appeal globally.India in the World's Eyes Wharton's Singh feels foreign investors may view corruption in India "as the cost of doing business." But the country would attract more foreign investments and business interest if it had a stronger reputation for being non-corrupt. the role and independence of the CAG and the will of the vernment to unearth this scam as a positive attempt to spring-clean all that was wrong. but this can change rather quickly. he says. Investors are attracted to India because "there are not too many other options that are particularly attractive . principal analyst and founder director of Ascentius Consulting." .. "Foreign investors may actually perceive the role of courts and rule of law. according to Alok Shende.
The case details of the main PIL filed with the supreme court is Type:Writ Petition (Civil). which they would use to create 2G subscriptions for cell phones. but the scam came to public notice when the Indian Income Tax Department investigated political lobbyist Niira Radia and the Supreme Court of India took Subramaniam Swamy's complaints on record [With Case type:Writ Petition (Civil).What do you mean by 2G scaN? The 2G spectrum scan involved officials and ministers in the Government of India illegally undercharging mobile telephony companies for frequency allocation licenses. Year:2010. According to a report submitted by the Comptroller and Auditor General based on money collected from 3G licenses. .379 crore (US$38.Case No:10. The issuing of the 2G licenses occurred in 2008. Year:2011]. the loss to the exchequer was 176.27 billion).Case No:423.
he became cabinet minister for communication and information technology. Tamil Nadu. he became a cabinet minister in the UPA government. A. India) is an Indian politician from the Dravida Munnetra Kazhagam(DMK) political party.Who is this Person? One of the main person behind the India‟s Largest Corporate Fraud. Raja was first elected to the Lok Sabha in 1996 and first served as minister of state from 1999 to 2003. On being re-elected to the Lok Sabha in 2004. On being re-elected in 2009 he was again appointed cabinet minister for communication and information technology until being tainted in the 2G spectrum scam and resigning in 2010. . In 2007. Raja (Born May 10. He is a member of the 15th Lok Sabha representing the Nilgiris constituency of Tamil Nadu. Perambalur. 1963.
Law Ministry.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 4million in 2001. Finance Ministry. NO PROCEDURES FOLLOWED • Rules changed after the game had begun. no bids invited. • No proper auction process followed. • Cut-off date for applications advanced by a week. • TRAI had recommended auctioning of spectrum at market rates. • Raja ignored advice of TRAI. . • Licenses issued on a first-come-first-served basis.
1661 crore.4200 crore. 6200 crore. • All nine companies paid DOT only Rs. sold 60% stake for Rs.10. CORPORATES ENCASH PREMIUM • Unitech. sold 45% stake to Etisalat for Rs. • Swan Telecom given license even though it did not meet eligibility criteria. .FAVOURITISM. • Unitech Wireless got license for Rs.772 crore for 2G licences. Swan Telecom got licenses without any prior telecom experience . • Swan got license for Rs.1537 crore.
Dynamix Group Venugopal Dhoot .Videocon Group Prashant Ruia .Reliance Group (ADAG) Shahid Balwa .Corporate personalities involved Anil Ambani . .Essar Group All of them have either been question by the CBI or are prospective suspects in the scam.DB Realty and DB Etisalat (Swan Telecom) Vinod Goenka .
Raja's appointment as minister. a former airline entrepreneur turned corporate lobbyist whose conversations with politicians and corporate entities were recorded by the government authorities and leaked creating the “Nira Radia tapes controversy”.Media persons and Lobbyists involved Nira Radia. an NDTV journalist alleged to have lobbied for A. Vir Sanghvi. a Hindustan Times editor alleged to have edited articles to reduce blame in the Nira Radia tapes. Barkha Dutt. .
Its reported that nearly 2 Billion USD was eroded from his stocks . • Sun TV had its shares fall by 10% on the next day following rumours of Kalanidhi Maran having stake in Kalaignar TV.Impact on stock markets • The first casualty in Stock Markets once Raja was arrested was DB Realty. • DB Realty had given 200+ crores to Kalaignar TV (owned by Karunanidhi's Wife) . • Sun TV COO refused the allegations.Spicejet stocks went down after reports of investigation on Maran's recent takeover of Spicejet. Swan Telecom Chief Balwa was arrested on Feb 8 and this led to rumours of links with Anil Ambani's Reliance ADAG and it led to 20% fall of his stocks. • The news led to 20% fall in the stock prices of DB Realty. .
Raja arranged the sale of the 2G spectrum licenses below their market value. purchased a license for 1.537 crore (US$333.44 million) and the company board soon after sold a 60% stake in their wireless division for 6. the board sold 45% of the company to Etisalat for 4. Swan Telecom.661 crore (US$360. the Unitech Group. a company formerly invested in real estate and not telecom.200 crore (US$1. bought a license for 1. Similarly.200 crore (US$911.53 million).4 million).35 billion) to Telenor .  Shortly thereafter. a new company with few assets.Shortfall of money A.
and suppressed news reporting the discovery of the corruption. . The critics alleged that Dutt and Sanghvi knew about corruption between the government and the media industry.Relationship between media & government Media sources such as OPEN and Outlook reported that Barkha Dutt and Vir Sanghvi knew that corporate lobbyist Nira Radia was influencing the decisions of A. supported this corrupt activity. Raja.
Ratan Tata petitions over Tape leak The tapes leaked to the public include conversations between Nira Radia and Ratan Tata. with the Minister for Home Affairs. Tata petitioned the government to acknowledge his right to privacy and demanded accountability for the leak. . Indian Income Tax Department. the Department of Telecommunication. CBI. and the Department of Information Technology as respondents in the petition.
Persons involved in 2G Spectrum Scam • • • • • • • Nira Radia M.Karunanidhi A Raja (Telecom minister) Arun Jaitley Barkha dutt (Journalist) Arun Shourie Pramod Mahajan .
Videocon Telecommunications Limited Reliance Communications Sistema Shyam Mobile (MTS) – Sistema Mobile Russia Tata Communications Vodafone Essar Loop Mobile S Tel Dishnet Wireless Allianz Infra .Corporations involved Unitech Group: A real estate company entering the telecom industry with its 2G bid. Swan Telecom: It sold 45% of its company stake at huge profit to Emirates Telecommunications Corporation (Etisalat) after buying licensing. sold 60% of its company stake at huge profit to Telenor after buying licensing (Including land values properties for towers).
Steps taken by Government after Scam Government of India take some important steps looking forward in this Scan: • • • • Set up a special branch of CBI to look into the matter. . A Raja also arrested by the Police. CBI is also interacting with the brothers of A Raja and also some business men. Telecom Minister resigns his post after Scan.
and Etisalat to respond to his assertion that all of the 85 licenses granted to these companies did not have the up-front capital required at the time of the application and were in other ways illegal. Datacom (Videocon).Raja resigned. By mid November A. S Tel. Raja's resignation.Raja from corruption charges and called for A. Loop Mobile.Response to scan • In early November 2010 Jayalalithaa accused the Tamil Nadu state chief minister M Karunanidhi of protecting A. • In mid November the comptroller Vinod Rai issued showcause notices to Unitech. .
the Govt of India has replaced the then incumbent Telecom minister .A Raja with Kapil Sibal who has taken up this charge in addition to being the Union minister for Human Resources Development.Response to scan • In response to the various allegations .Mr Sibal contends that the "notional" losses quoted are a result of erroneous calculations and insists that the actual losses are nil. .
Raja's personal secretary R K Chandolia. member telecom K Sridhar and DoT deputy director general A K Srivastava on 8 December 2010. • Raja. Behura and Chandolia were arrested on Feb 2nd 2011. .former telecom secretary Siddharth Behura.Response to scan • The CBI conducted raids on Raja and four other telecom officials .
They used to do some unofficial work for the sake of money. . This is not the only example which makes Administration of India affected badly there are lots of other factors which makes it worse. Poor Administration of India is just because of the poor political leaders of our country. this makes Administration of India weaker.Corrupted Administration Of India If we talk about the Administration of India we all must say it is not a well maintained or a well centralized Administration as comparison to other Asian countries.
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