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The 2G spectrum scandal involved officials in the government of India illegally undercharging mobile telephony companies for frequency allocation licenses, which they would use to create 2G subscriptions for cell phones. The shortfall between the money collected and the money which the law mandated to be collected is estimated to be 176,645 crore (US$38.86 billion) as valued by Comptroller and Auditor General of India based on 3G and BWA spectrum auction prices which held in 2010. However the exact loss is disputed, Central Bureau of Investigation (CBI) pegged the loss at 2011,
30,984.55 crore (US$6.82 billion) in its first charge sheet filed on 2 April
whereas Telecom Regulatory Authority of India in a response to CBI's query said that the Govt. has actually 3,000 crore (US$660 million) by selling the spectrum. Kapil Sibal, minister for communications & IT,
said in a press conference that there was no loss caused by selling 2G licenses.  However in September 2011, CBI argued before the Supreme Court that it was unsafe to read a "no loss" conclusion in the telecom regulator's calculations on irregular spectrum allotment as the methodology adopted admittedly did not take into account the market mechanism. All the speculations of profit, loss and no-loss were put to rest when on 2 February 2012 the Supreme Court of India delivered judgement. The Supreme Court declared the allotment of spectrum as "unconstitutional and arbitrary" and quashed all the 122 licenses issued during tenure of A. Raja, the main accused in the 2G scam case. The court further said that A. Raja "wanted to favour some companies at the cost of the public exchequer" and "virtually gifted away important national asset". The issuing of licenses occurred in 2008, but the scam came to public notice when the Indian Income Tax Department was investigating political lobbyist Nira Radia. The government's investigation and the government's reactions to the findings in the investigation were the subject of debate, as were the nature of the Indian media's reactions. Much of the credit of bringing this whole scam into the public light (by pursuing it in the court of law) goes to Subramanian Swamy who is the chief petitioner for this case in the court of law.[8
India is divided into 22 telecoms zones and there are a total 281 zonal licences in the market.  According to the telecom policy of India, when a licence is allotted to an operator some start-up spectrum is bundled along with it. The policy does not have a provision for auctioning the spectrum In year 2008, 122 new second generation (2G) Universal Access Service (UAS) licenses were given to telecom companies at the price of 2001 and on first come first serve basis. As per the chargesheet filled by Central Bureau of Investigation (CBI) several rules were violated and bribes were paid to favour certain firms while awarding 2G spectrum licenses. The audit report of Comptroller and Auditor General of India (CAG) says that several licenses were issued to firms with no prior experience in the telecom sector or were ineligible or had suppressed relevant facts.  In August 2007, Telecom Regulatory Authority of India (TRAI) had given its recommendations which also included recommendations on pricing of 2G spectrum among many other recommendations to Department of Telecommunications (DOT), which
 Swan got license for 1. In 2007."   In November 2007 Prime Minister of India Dr Manmohan Singh too had written a letter to telecom minister A. In chargsheet filed by CBI it alleges that Raja conspired with the accused.is a part of Ministry of Communications and Information Technology.42 million) and later sold 60% stake for company Telenor.Raja could have received 3.Political party DMK.  Swan Telecom got the license even though it did not meet eligibility criteria. present constituency Nilgiris.2003). former Union Minister of State (Rural Development . Raja but he did not place the recommendations before the full Telecom Commission which.30 pm on that very day would be issued licences in accordance with the said policy.661 crore (US$365. former Union Cabinet Minister (Environment & Forests . from 1 October 2007.537 crore (US$338. Tamil Nadu. enabling Raja to favour a few with spectrum. . Raja : Political career . Unitech Wireless. Raja advising him to refer the 2G spectrum allocation issue to the Empowered Group of Ministers (EGoM) but Raja rejected this advice and wrote a letter to the Prime Minister's Office terming the Law Ministry's advice as "out of context.14 million) and then it sold 45% stake to UAE based company Etisalat for 4. He didn’t auction the 2G spectrum or adopt some other market-determined methodology to .200 crore (US$1.30 and 4. DoT posted an announcement on its website saying those who apply between 3. then headed by A. would have included the Finance Secretary. 2007 to September 25. got license for 1.1999).2007 & 2009) Allegation .2004). 6. Raja directing him to ensure allotment of 2G spectrum in a fair and transparent manner and to ensure license fee was properly revised.36 billion) to Norway based Politicians accused A. It preponed the cut-off date to 25 September. 2007. a subsidiary of the Unitech Group.000 crore (US$660 million) as bribe for bringing forward the cut-off date for applications for spectrum from the initial October 1. Later on the same day. Ministry of Law had written a letter to A. subverted the firstcome first-served (FCFS) policy and waywardly redefined it to ensure that Swan and Unitech got 2G licences.   The deadline switch eliminated many applications.. former Union Minister of State (Health and Family Welfare .200 crore (US$924 million). Raja wrote back to the Prime Minister rejecting many of his recommendations. Companies like Unitech & Swan Telecom got licenses without any prior telecom experience. former Union Cabinet Minister (Communication and Information Technology . 4 times MP.In a joint investigation report prepared by Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) the agencies allege that A.  The agencies also alleged that he used bank accounts under his wife's name in Mauritius and Seychelles to chanelise the kickbacks he received. among others. In the same month Ministry of Finance wrote a letter to Department of Telecommunications (DOT) raising concerns over the procedure adopted by it but DOT went ahead with its plan of giving 2G licenses.
 The bench of Justice GS Singhvi & Justice AK Ganguly imposed fine of crore on Unitech Wireless.Taken into custody (arrested) by CBI on 2 Februay 2011 and lodged in Tihar Jail since then (as of february 2012) Applied for bail a number of times but every time the bail got rejected. Status . CBI alleges that Kanimozhi was an "active brain" behind the channel's operations and she worked along with former telecom minister A.  CBI alleges that A Raja was further pursuing the cause of Kalaignar TV not only for getting registration of the company fromMinistry of Information and Broadcasting but also for getting it in the DTH operator TATA Sky's bouquet.Daughter of 5 time Chief Minister of Tamil Nadu M. cheating under section 420 & forgery under sections 468 and 471. Swan telecom and Tata Teleservices and Infratech and Sistema Shyam Tele Services Ltd. Allianz The Supreme Court's ruling said the current licences will remain in place for four months. Karunanidhi. when the telecom sector was at a nascent stage. . in which time the government should decide fresh norms for issuing licences. Kanimozhi was in regular touch with A Raja regarding launching of Kalaignar TV channel and its other pending works. representing Tamil Nadu in the Rajya Sabha (the upper house of Indian Parliament).Taken into custody (arrested) by CBI on 20 May 2011.  5 50 lakh fine on Loop Telecom. The allocation of 2G spectrum was described by Supreme Court as "unconstitutional and arbitrary".  License quashed On 2 February 2012 Supreme Court of India quashed all 122 spectrum licences granted during the tenure of former communications minister A Raja. Status . Charges .  M.determine its real valuation and instead benchmarked it to a rate discovered in 2001. K. a lawyer involved in the case said.As per the chargesheet filed by CBI Kanimozhi has 20% stake in her family owned Kalaignar TV. criminal conspiracy under section 120-B. Political party DMK.The apex court said the Central Bureau of Investigation (CBI) would submit its report on the 2G scam probe to the Central Vigilance Commission (CVC)..  Allegation . Booked under the Prevention of Corruption Act.Criminal conspiracy to cause criminal breach of trust by a public servant. her step-mother Dayalu Ammal owns 60% stake in the same channel. Charges . Booked under the Prevention of Corruption Act for accepting illegal gratification.   Granted bail on 28 November 2011 after spending 188 days in judicial custody.  200 crore (US$44 According to CBI. Raja to get DB Realtypromoter Shahid Balwa to circuitously route million) to Kalaignar TV. S Tel. Kanimozhi : Political career .Criminal breach of trust by a public servant under section 409. She is an MP. criminal conspiracy under section 120-B. cheating under section 420 & forgery under sections 468 and 471.
 and the seven steps were : 1.9. This arbitrary action of Raja "though appears to be innocuous was actually intended to benefit some of the real estate firms who did not have any experience in dealing with telecom services and who had made applications only on 24. Raja "wanted to favour some companies at the cost of the public exchequer" and listed seven steps he took to ensure this happened.  4. were not placed before the full Telecom Commission which would have included the finance secretary. arbitrary and capricious to auction spectrum to new applicants because it would not give them a levelplaying field. After taking over as telecom minister. Raja directed that all applications received for UAS licences should be kept pending till receipt of the Trai's recommendations. "The manner in which the exercise for grant of LoIs to the applicants was conducted on 10. within hours of the receipt of the suggestion made by the PM in his letter dated 2 November 2007. But. Raja brushed aside the law minister's suggestion that the matter should be placed before the empowered group of ministers. Also. since they would otherwise have "incurred" Raja's "wrath". The cut-off date of 25 September 2007. The recommendations made by Trai on 28 August 2007. for considering applications though only the previous day a DoT press release had said 1 October 2007. had no choice but to approve Trai's recommendations. who had access either to the minister or DoT officers.1. the DoT had to discuss the issue of spectrum pricing with the finance ministry. He also introduced a cut-off date of 25 September 2007. and the first-come-first-served principle followed since 2003 was changed by him at the last moment through a press release dated 10 January 2008. Raja rejected it saying that it would be unfair. 6. get bank drafts prepared towards performance guarantee of about Rs 1.e. 2. would be the last date. since Raja knew that the finance secretary had objected to the allocation of 2G spectrum at rates fixed in 2001. i. 5. decided by Raja on 2 November 2007. Since Cabinet had approved recommendations made by the Group of Ministers. 7. was not made public till 10 January 2008. 1961. The DoT officers who attended the Telecom Commission meeting held on 10 October 2007. some firms which had . transparency and fairness should be maintained in allocation of the spectrum. he did not consult the finance minister or other officials. "This enabled some of the applicants. 3.2007.600 crore". The notice of the meeting of the Telecom Commission was not given to any of the non-permanent members though Trai's recommendations for allocation of 2G spectrum had serious financial implications and it was therefore necessary for DoT to take the finance ministry's opinion under the Government of India (Transaction of Business) Rules." As a result.The Supreme Court said in its order that then telecom minister A.2008 leaves no room for doubt that everything was stage managed to favour those who were able to know in advance change in the implementation of the first-come-first-served policy. discriminatory. one day before the cut-off date fixed by the C&IT minister on his own". that keeping in view the inadequacy of spectrum.
for $175 6 .[173 Telecom companies affected by cancellation of licenses The table below shows list of companies whose license were cancelled  Number of Name of company Parent group licenses cancelled Uninor Joint venture between Unitech Group of India and Telenor of Norway Unitech Group 22 Sistema Shyam TeleServices Limited. After the Supreme Court's decision Batelco sold its 42.7% stake to C Sivasankaran company Sky City Foundation Ltd.submitted applications in 2004 or 2006 were pushed down in the priority and those who had applied between August and September 2007 succeeded.6%)of USA 13 Joint venture between C Sivasankaran of India and Batelco of S Tel Bahrain. Axiata Group Berhad of Malaysia (15%) & Providence Equity(10. now MTS India Joint venture between Shyam group of Indian and Sistema of Russia 21 Loop Mobile formerly BPL Mobile Owned by Khaitan Holding Group 21 Videocon Telecommunications Limited Owned by Videocon group of India 21 Etisalat-DB Joint venture between Swan Telecom of India and Etisalat of UAE 15 Idea Cellular Aditya Birla Groupof India (49.05%).
Raja's resignation. Datacom (Videocon).In mid November the comptroller Vinod Rai issued show-cause notices to Unitech. The government announced it formally on 22 February 2011. The opposition's demand for (JPC) gained further momentum when Comptroller and Auditor General of India's report was tabled in Parliament on 16 November 2011. 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. The opposition blocked parliament proceedings and again pressed for JPC.As soon as the Indian media started citing Comptroller and Auditor General of India's report which pegged the loss at 1. Jayalalitha accuses M. take up 23 pending bills for consideration and passing and withdraw three bills but that didn't happen because the parliament was allowed to function for only 9 hours.  Later when the winter session of parliament began on 9 November 2010. CAG issues show-cause notices . the Indian opposition parties unanimously demanded formation of Joint parliamentary committee (JPC) to investigate 2G scam. opposition again pressed for (JPC) but once again the demand was rejected. Karunanidhi .  In February 2011.  . as they are currently providing some consumer service. the government finally agreed to constitute a Joint Parliamentary Committee (JPC) to probe the 2G spectrum allocation issue. Raja resigned. Raja from corruption charges and called for A. Meira Kumar tried to break the logjam but her efforts didn't bear any fruit.Speaker of the Lok Sabha. Some media sources have speculated that these companies will receive large fines but not have their licenses revoked. Finally the winter session of parliament concluded on 13 December 2010 .In early November 2010 Jayalalithaa accused the state chief minister M Karunanidhi of protecting A. Loop Mobile.Number of Name of company Parent group licenses cancelled million Tata Teleservices Owned by Tata Group of India 3 Response to scam Opposition demands Joint Parliamentary Committee (JPC) . The plan was to introduce 22 new bills. after resisting the Opposition demand for over three months.76 lakh crore. However the Indian government rejected the demand of opposition. S Tel. By mid November A. With Govt again rejecting the demand there was logjam in parliament.
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