2G SCAM

Introduction:

This 2G Scam is a National Scam in India and this involved many higher
profiled honchos in the country, including some of the public servants and some politicians.
Along with some accused officials. This telecom spectrum is a scarce natural resource, which is
allotted to the companies to very cheap prices by illegal means, for the companies, by the (UPA
formed) Government of India. And Corrupted people are being arrested, in India based on
“Prevention of Corruption Act, 1988”, (Indian Penal Code) IPC Section 120-B, 409, 420, 468,
471.

Some of the persons being arrested (at some point of time) are:

 A. Raja (Ex.Union Minister of Communications & IT, India).

 M.K Kanimozhi (Daughter of 5-time Chief Minister of Tamil Nadu, M. Karunanidhi).
 Siddharth Behura (Telecom Secretary, when licenses were issued).
 RK Chandolia (Raja’s Private Secretary, when licenses were granted).
 Vinod Goenka (Promoter and MD, DB Reality & Swan Telecom).

And still there are more accused and the case is going on in the concerned courts.

Investigation done by CBI (Central Bureau of Investigation, India).

The case was first done FIR (First Information Report) by CBI based on the report from
(Comptroller and Auditor General of India) CAG, India, which has the evidence about the case
showing that, Raja had signed and approved the allocations.

CAG said that, these licenses are to be issued on an (First Come First Serve) FCFS System, it is
observed that, FCFS policy is not followed, but that, who obtained the licenses had the prior
information of about, how to apply for those and it also found that, 13 companies, which they
received, 85 from 122 new licenses issued in 2008 did not satisfy the (Department of
Telecommunications) DoT eligibility conditions.

The Department of Telecom (is a part of Ministry of Communications and Information

Technology) has been formulating developmental policies for the accelerated growth of the
telecommunication services. The Department is also responsible for grant of licenses. In Jan
2008, when the DoT issued all-India licenses at INR. 1,658 crore, price was the same as that,
which had existed in 2001.
Raja’s offices and houses were raided by the CBI and (Enforcement Directorate) ED also seizing
the computers, serving/possessing as the potential evidence. Both of them estimated that, he
could have made as much as INR 30 Billion from bribes. The CBI said that, Kalaignar TV
(DMK Owned) got a bribe of around INR 200 Crore from Swan Telecom, through some
subsidiaries in exchange of the licenses.

Consequences observed:
The CAG Report outraged BJP, the main opposition of the Lower house of Parliament in
India, at that time, posing hurdles to the normal session of the house to be held, the scandal
touched the DMK Party through Raja, (a major collating/partner party in forming the UPA
Government) and the bribes were passed to the DMKs television channel (Kalaignar TV).

Then, Raja was forced to resign from the ministry and was arrested and soon pushed to the court.
The licenses were then not immediately cancelled; even though the problem had been
discovered, because of some of the foreign stake investments from UAE’s Etisalat’s and
Norway’s Telenor’s, local ventures, as cancelling them immediately, would raise questions about
the foreign investors, can trust with Indian Governmental contracts.

Those corporate honchos were rejected bail by the concerned court and Raja had got a bail from
the Supreme Court of India, under the condition that, he should not visit the Department of
Telecommunications in Delhi and should not visit his own State of birth.

This came up to brim when:

On 10th of January 2008, DoT granted 120 of the new licenses, for unified access services
on the same day. As disclosed, these licenses were issued at a price it was in 2001. Issuing a
large number of licenses, in one day and with the price at 2001, had drawn the attention of
Parliament, Media and some of the informed members in the civil society.

Then, questions had been raised about the allocation of the licenses, losing the maximum amount
of the revenue income to the government, from issuing them, which is a national asset. The
respective department had been receiving, inputs and findings from other members of the
parliament and other sources asking about the current fixed price and the process of giving the
licenses.
Some of the claims are that, some of the applicants had gained the licenses, with price seen as far
below and according to the 2001 market, but not the current 2008 market. It almost took 16
months to find this.

Recently:
On 2nd April, 2011, CBI (Central Bureau of Investigation), files its first charge sheet in relation
with the 2G Spectrum Scam, followed by the respective bail plea rejections, of those who were
arrested by that time.

The supreme court of India quashed all the 122 licenses issued on 2nd of Feb, 2012, which are
allocated in a legal way and with of no national interest, delivering a judgment on a (Public
Interest Litigation) PIL.

And on 1st of August, 2012, Supreme Court of India, after hearing the Presidential note on '2G
judgment,' disclosed, that the implementing of FCFS policy for allotting of spectrum was flawed.
The Chief Justice of India (CJI) said, "The moment you change the criterion and distort
the policy, it ceases to be FCFS policy. If you insist on making payment at the last
minute after changing the cut-off date, then it is not FCFS, it is an out-of-turn
policy."

3rd of August 2012, as per the guidelines of the Supreme Court of India and CAG, the
government, revised the base prize for the 2G Spectrum and on 6th of June 2012, Raja, granted
permission to visit his own state by the Special CBI court.

REFERENCES:
 https://www.google.se/url?
sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0CCwQFjAB&url=http%3A%2F
%2Findiatoday.intoday.in%2Fstory%2Fwhat-is-the-2g-scam-all-about
%2F1%2F188832.html&ei=MVSLVNjPDYGvPJasgJAN&usg=AFQjCNFIQU5eBV09E
R5G9e1jIYHTanBTqw&sig2=sMlbR_JzuPf9cuZQbDkdkg
 http://www.ndtv.com/article/india/2g-spectrum-scam-the-story-so-far-133841
 http://ramanan50.wordpress.com/2010/12/25/2g-spectrum-scam-full-storyorigingrowth-
and-modus-operandi/
 http://www.moneycontrol.com/news/business/expert-analysis-2g-scamits-
impactbusiness_537301.html
 http://ibnlive.in.com/news/summary-of-cag-report-on-2g-spectrum-scam/135326-3.html
 http://in.reuters.com/article/2011/04/02/idINIndia-56074020110402