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2G Scam Final
2G Scam Final
SCAM
Contents
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.
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,
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. As 2G was launched in 1991 so many other technologies overcome it with 2.5G, 2.75G technologies but the latest technology in present world is 3G.
The 2G scandal is unlikely to hurt India's investment appeal globally, according to Alok Shende, principal analyst and founder director of Ascentius Consulting. "Foreign investors may actually perceive the role of courts and rule of law, 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,"
A. Raja (Born May 10, 1963, Perambalur, Tamil Nadu, India) is an Indian politician from the Dravida Munnetra Kazhagam(DMK) political party. He is a member of the 15th Lok Sabha representing the Nilgiris constituency of Tamil Nadu. 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, he became a cabinet minister in the UPA government. In 2007, he became cabinet minister for communication and information technology. 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.
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.
Anil Ambani - Reliance Group (ADAG) Shahid Balwa - DB Realty and DB Etisalat (Swan Telecom) Vinod Goenka - Dynamix Group Venugopal Dhoot - Videocon Group Prashant Ruia - Essar Group All of them have either been question by the CBI or are prospective suspects in the scam.
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 Radia tapes.
Sun TV had its shares fall by 10% on the next day following rumours of Kalanidhi Maran having stake in Kalaignar TV.
Sun TV COO refused the allegations. 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. Its reported that nearly 2 Billion USD was eroded from his stocks .Spicejet stocks went down after reports of investigation on Maran's recent takeover of Spicejet.
Shortfall of money
A. Raja arranged the sale of the 2G spectrum licenses below their market value. Swan Telecom, a new company with few assets, bought a license for 1,537 crore (US$333.53 million). [15] Shortly thereafter, the board sold 45% of the company to Etisalat for 4,200 crore (US$911.4 million). Similarly, a company formerly invested in real estate and not telecom, the Unitech Group, purchased a license for 1,661 crore (US$360.44 million) and the company board soon after sold a 60% stake in their wireless division for 6,200 crore (US$1.35 billion) to Telenor
The tapes leaked to the public include conversations between Nira Radia and Ratan Tata. Tata petitioned the government to acknowledge his right to privacy and demanded accountability for the leak, with the Minister for Home Affairs, CBI, Indian Income Tax Department, the Department of Telecommunication, and the Department of Information Technology as respondents in the petition.
Nira Radia M.Karunanidhi A Raja (Telecom minister) Arun Jaitley Barkha dutt (Journalist) Arun Shourie Pramod Mahajan
Corporations involved
Unitech Group: A real estate company entering the telecom industry with its 2G bid; sold 60% of its company stake at huge profit to Telenor after buying licensing (Including land values properties for towers). Swan Telecom: It sold 45% of its company stake at huge profit to Emirates Telecommunications Corporation (Etisalat) after buying licensing. Videocon Telecommunications Limited Reliance Communications Sistema Shyam Mobile (MTS) Sistema Mobile Russia Tata Communications Vodafone Essar Loop Mobile S Tel Dishnet Wireless Allianz Infra
Response to scan
In early November 2010 Jayalalithaa accused the Tamil
Nadu state chief minister M Karunanidhi of protecting A.Raja from corruption charges and called for A. Raja's resignation. By mid November A.Raja resigned.
In mid November the comptroller Vinod Rai issued show-
cause notices to Unitech, S Tel, Loop Mobile, Datacom (Videocon), 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.
Response to scan
In response to the various allegations , 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.Mr Sibal contends that the "notional" losses quoted are a result of erroneous calculations and insists that the actual losses are nil.
Response to scan
The CBI conducted raids on Raja and four other
telecom officials - former telecom secretary Siddharth Behura, 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.
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