The 2G spectrum scam in India involved the issue of 1232 licenses by the ruling Congress-led UPA alliance

[1] of the 2G spectrum to 85 companies[1] including many new telecom companies with little or no experience in the telecom sector at a price set in the year 2001. The scam involved allegations regarding the under pricing of the 2G spectrum by the Department of Telecommunications which resulted in a heavy loss to the exchequer, and the illegal manipulation of the spectrum allocation process to favour select companies The issue came to light after the auction of airwaves for 3G services which amounted to 677,190 crore (US$151.01 billion) to the exchequer.[2] A report submitted by the Comptroller and Auditor General based on the money collected from 3G licenses estimated that the loss to the exchequer due to under pricing of the 2G spectrum was 176,379 crore (US$39.33 billion).[3] The scam came to public notice when the Supreme Court of India took Subramaniam Swamy's complaints on record [With Case type:Writ Petition (Civil),Case No:10, Year:2011].[4]All the accused have been booked under sections 120(B) (criminal conspiracy), 468 (Forgery for purpose of cheating), 471 (using as genuine a forged document or electronic record), 420 (cheating and dishonestly inducing delivery of property) and 109 (abetment if the act abetted is committed in consequence, and where no express provision is made for its punishment) of the Indian Penal Code.[5]

Politicians, Ministers and Parliamentarians involved:
Andimuthu Raja, Union Cabinet Minister for Communications and Information Technology : The Comptroller and Auditor General holds Raja personally responsible for the sale of 2G spectrum at 2001 rates in 2008, resulting in the previously mentioned loss of up to Rs. 1.76 lakh crores (US$40 billion) to the national exchequer.In August, 2010, evidence was submitted by the Comptroller and Auditor General (CAG) showing that Raja had personally signed and approved the majority of the questionable allocations. Kanimozhi Aravindhan, Member of Rajya Sabha : On April 25, 2011 Kanimozhi was named as a co-conspirator in the supplementary chargesheet filed by the Central Bureau of Investigation (CBI) in connection with the 2G spectrum case. The chargesheet submitted before the Supreme Court establishes how Rs 200 crore connected with the scam traveled from a partnership firm of businessman Shahid Balwa of Swan Telecom to the

Chandolia interacted with all the licensees.She has been charged with section 7 and 11 of the Prevention of Corruption Act. Baijal joined Noesis.Karunanidhi family-owned Kalaignar TV. Civil Servant (IAS officer of 1966 batch MP cadre) : He is alleged to have recommended policies that favored certain Telecom companies when he was heading the TRAI. Baijal is expected to get a clean chit in this issue. Civil Servant (IAS officer of 1973 batch UP cadre) : He was the Telecom secretary who served in the DOT at the time of the 2G allocation. Bureaucrats involved: Siddhartha Behura.However. Post retirement. had handed out letters of intent to representatives of various companies. from DDG-access services A K Srivastava's room. something which has been attacked by Arun Shourie and several media pundits. a consulting firm. Chandolia had been promoted to the Joint Secretary rank. R K Chandolia. The houses and offices of the bureaucrat were recently[when?] visited by the Central Bureau of Investigation as part of their investigations. that gave him the charge of all important policy-related work. The sections deal with acceptance of alleged gratification. Corporations involved: Allianz Infra Aircel Dishnet Wireless Loop Mobile Sistema Shyam Mobile (MTS) – Sistema Mobile Russia Reliance Communications S Tel Swan Telecom . Pradip Baijal.Raja has made references to Baijal's decisions in 2003 as the basis for his decisions in 2008. Raja re-designated him Economic Adviser. When Raja became the Telecom Minister once again in UPA-II. Civil Servant (IES officer of 1984 batch cadre) : He was private secretary of Raja during UPA-I when the licences were awarded. It is said that it was Chandolia who.

Chidambaram. former Union Cabinet Minister for Textiles : The main allegation revealed by Tehelka magazine and followed up in several other reports. The contents were later leaked by unknown parties creating the Nira Radia tapes controversy. Dishnet Wireless.Tata Tele Services Unitech Group Videocon Telecommunications Limited Vodafone Essar Virgin Mobile India Corporate personalities involved: Anil Ambani . He issued the licenses soon after it changed hands to Ananda Krishnan who owns Maxis. a former airline entrepreneur turned corporate lobbyist whose conversations with politicians and corporate entities were recorded by the government authorities. Managing Director of Unitech Ltd and Unitech Wireless All of them have either been questioned by the CBI or are prospective suspects in the scam.Videocon Group Prashant Ruia . owner of Aircel. when it was owned by Sivasankaran.[16] P.Essar Group Sanjay Chandra. current Union Cabinet Minister for Home Affairs : .Swan Telecom (now Etisalat DB) Venugopal Dhoot .Reliance Group (ADAG) Ratan Tata Shahid Balwa . to sell the telecom company to Maran's Malaysia-based friend T Ananda Krishnan in 2006. Media persons and lobbyists involved: Nira Radia. The reports allege that Maran deliberately delayed issuing spectrum licenses to Aircel's sister concern. Politicans. Ministers and Parlimentarians involved: Dayanidhi Maran. is that Maran forced C Sivasankaran.Swan Telecom (now Etisalat DB) Vinod Goenka .

75G (EDGE). the CAG estimated the loss to the exchequer at 67. T.[19] The first method was based on the fact that S Tel. Gopalaswami and former central vigilance commissioner (CVC) P.S. Subramaniam alleges that Chidambaram had received kickbacks and undervalued the spectrum cost.000 crore (US$39.364 crore (US$15. shortly after the spectrum allocation.Raja.Chidambaram was the finance minister of India and he had a major role in deciding the spectrum price with A. Based on this method. on behalf of the civil society organisationTelecom Watchdog Others:Several eminent people like former chief election commissioners J. [17] Petitioners to 2g scam: Subramaniam Swamy. the CAG estimated the loss to the exchequer to be 176. a journalist who was one among the very first to write on the irregularities in the awarding of 2G spectrum allocation by the Telecom Ministry. Paranjoy Guha Thakurta. one of the licensees. Krishnamurthy and N. this can be construed as re-sale of the spectrum by the .Subramaniam Swamy states that when the 2g Spectrum rate was finalised. Lyngdoh. whose letters to the Prime Minister demanding action and affidavits and cases in the Supreme Court brought the issue into the public limelight.25 billion) The third method was based on the fact that some of the licensees received FDI in the form of equity. on behalf of the Centre for Public Interest Litigation. The CAG reasoned that this equity infusion was entirely due to the value of the allocated spectrum. activist lawyer and politician. Anil Kumar.[18] Prashant Bhushan. Shankar are also petitioners in the suits filed by civil society groups. P. He is also one of the petitioners in the 2G PIL currently being heard in the Supreme court. its price should be comparable to that of 3G licenses. Loss to Exchequer: The Controller and Auditor General of India used three different methods to assess the presumptive loss to the exchequer resulting from not auctioning 2G spectrum. The CAG reasoned that since 2G is really 2.02 billion) The second method was based on the price recovered by the 3G auction in 2010. Based on the fees offered by S Tel. explicitly offered to pay significantly higher license fees for the spectrum.M.

[20] He has also justified his government's decision not to auction 2G spectrum as being in line with the policy guidelines laid down by the 10th Five-Year Plan.licensee. In mid November the controller Vinod Rai issued show-cause notices to Unitech. the Department of Telecommunication.[23] The critics alleged that Dutt and Sanghvi knew about corruption between the government and the media industry.[26] Some media sources have speculated that these companies will receive large fines but not have their licenses revoked. and hence was a valid basis for assessing loss to the exchequer.86 billion) (based on Etisalat's investment in Swan Telecom) and 69. CBI.[24] On April 4. Datacom (Videocon). Raja as the communication minister. and the Department of Information Technology as respondents in the petition.] Ratan Tata petitions over leak: The tapes leaked to the public include conversations between Nira Radia and Ratan Tata.[26] . 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. S Tel. and suppressed news reporting the discovery of the corruption.626 crore (US$15. as they are currently providing some consumer service. Indian Income Tax Department. with the Minister for Home Affairs. Raja.53 billion) (based on Telenor's investment in Unitech). Tata petitioned the government to acknowledge his right to privacy and demanded accountability for the leak.[21][22] Relationship between media and 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. For its part. Loop Mobile.666 crore (US$12. who replaced A. the CAG estimated the loss to the exchequer to be anywhere between 57. the Congress-party led government has publicly defended itself on this count and Kapil Sibal. has refuted the CAG reasoning. supported this corrupt activity. Based on this method. 2011 Indian Parliament's Public Accounts Committee (PAC)questioned Tata Sons Chairman Ratan Tata and corporate lobbyist Niira Radia regarding their roles in 2G Scam.[25] Response to scam: In early November 2010 Telecom Minister A Raja resigned.

Shahid Balwa) and Rajeev Agarwal for their alleged involvement in money transfer to the Dravida Munnetra Kazhagam's (DMK) Kalaignar TV channel. the CBI arrested Mumbai based Dynamix Balwas (DB) group managing director Shahid Usman Balwa in connection with the 2G spectrum allocation scam. 2011. the CBI arrested Asif Balwa (younger brother of the arrested former Managing Director of DB-Etisalat Group. 2011.[27] Arrests and Chargesheets: On February 2.233).322. member telecom K Sridhar and DoT deputy director general A K Srivastava on 8 December 2010. Raja's personal aide. saying there was a possibility of witnesses being influenced considering the "magnitude" of the crime. On February 8. The CBI has evidence from the Income Tax department that Shahid Usman Balwa. was instrumental in channelling the kickbacks allegedly received by the former telecom minister. Raja with Kapil Sibal who has taken up this charge in addition to being the Union minister for Human Resources Development. DMK MP and Karunanidhi's daughter.[28][29] Both Raja and Chandolia are heard in conversation with Niira Radia in the released Radia tapes.K. the Govt of India has replaced the then incumbent Telecom minister.[20][21] The CBI conducted raids on Raja and four other telecom officials . It said the wrongful acts of the accused deprived the government exchequer of possible revenues amounting to INR Rs 30.[30] On March 29.former telecom secretary Siddharth Behura. The accused include the following individuals: [32] Andimuthu Raja. former Telecom Secretary R. Chandolia.Mr Sibal contends that the "notional" losses quoted are a result of erroneous calculations and insists that the actual losses are nil.985 crore (USD $ 6. in Delhi.Kanimozhi. A.In response to the various allegations. the former Telecom Secretary.K. 2011. considered close to Raja. Raja's former personal secretary .983. The CBI also arrested R. and Siddharth Behura. was arrested and sent to Tihar jail by a Delhi court which dismissed her bail plea in the 2G spectrum scam.000 page chargesheet in the 2G spectrum scam before a Special Court in Delhi naming nine individuals and three companies. Chandolia. the CBI filed its first 80. the Central Bureau of Investigation arrested former Telecommunications Union Minister Andimuthu Raja. former Telecom minister Siddharth Behura. 2011. Raja's personal secretary R K Chandolia.[31] On April 2.

former Director of Swan Telecom (now Etisalat DB) Sanjay Chandra. Reliance Anil Dhirubhai Ambani Group Hari Nair. (Public Accounts Committee) Public Accounts Committee. the CBI had named lobbyist Niira Radia and 124 others as witnesses.A.Shahid Usman Balwa. with chairman as Murli Manmohar Joshi. Reliance Anil Dhirubhai Ambani Group and Reliance Telecom Ltd Vinod Goenka. Special CBI Judge O P Saini of the Delhi court ordered the arrest of DMK Member of Parliament Kanimozhi and Kalaignar TV Managing Director Sharad Kumar after rejecting their bail pleas in the 2G spectrum case.[34] [edit]P. Director. Swan Telecom (now Etisalat DB) The three companies named are: Swan Telecom Unitech Wireless Reliance Telecom In the first chargesheet. was formed to investigate. independent of other committees like JPC. the Central Bureau of Investigation (CBI) named five more accused individuals:[33] Kanimozhi .Rajya Sabha Member of Parliament (DMK) and daughter of Tamil Nadu ex-Chief Minister M Karunanidhi Sharad Kumar of Kalaignar TV Karim Morani of Cineyug Films Asif Balwa of Kusegaon Realty Rajiv B Agarwal of Kusegaon Realty On 20 May 2011. a 21-member committee. in its second chargesheet in the scam. Group MD. The chairman submitted a draft report on 2G scam to Lok Sabha . Senior Vice-President.C. Reliance Anil Dhirubhai Ambani Group Surendra Pipara. Managing Director of Unitech Ltd and Unitech Wireless Gautam Doshi. On 25 April 2011. Senior Vice-President.

Sun TV had its shares fall by 10%. to which the chairman regretted and questioned if Parliament's proposals and then Supreme Court orders would be given the same treatment. Swan Telecom Chief Balwa was arrested on Feb 8 [38] and this led to rumours of links with Anil Ambani's Reliance ADAG and it led to 20% fall of his stocks . and insisted that it be tabled in the Parliament. He alleged that on 28-04-2011. that said trouble started when a decision was taken to call top officials of the PMO. Cabinet Secretary. Attorney General and CBI director for questioning. during the last meeting of the committee.[36] 20% fall in the stock prices of DB Realty. UPA members' claimed that the report had been "rejected". Its reported that nearly 2 Billion USD was eroded from his stocks .[40] . ministers passed on "chits" and called up PAC members to speak and behave in a particular manner.[35] [edit]Impact on stock markets The first casualty in Stock Markets once Raja was arrested was DB Realty. Joshi said it was the duty of the PAC to "trace and examine the way the money of common man is spent".Speaker on Saturday 30-04-2011. A minister reportedly commented that the PAC draft report will be thrown in the dustbin. Defending his action of calling witnesses from diverse fields in connection with the 2G scam probe.[39] Spicejet stocks went down after reports of investigation on Maran's recent takeover of Spicejet . and 11 MPs of same committee(majority out of 21) had "rejected" the report which was termed as "unconstitutional" by MM Joshi pointing out that such a possibility does not exist till the report is "read" by members and "discussed" para by para. [37] Sun TV COO refused the allegations.

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