2G SPECTRUM SCAM (mother of all scam



WHO IS Andimuthu Raja? 


Born in May 1963 in Perambalur, Tamil Nadu Got a BSc and then his law degrees Was a student leader of the Dravidar Kazhagam, the parent body of the DMK A block level leader he rose quickly and was first elected to the Lok Sabha in 1996. Becoming Cabinet Minister at the age of 35 - in the NDA government in 1999 Became Telecom Minister in May 2007

Procedure adopted in issue of UAS Licenses and allotment of spectrum .

76 lakh crore Rules and procedures flouted while issuing licenses Entry fee for spectrum licenses in 2008 pegged at 2001 prices Mobile subscriber base had shot up to 350 million in 2008 from 4 million in 2001 . 1.WHAT IS SPECTRUM SCAM?      2G licenses issued to private telecom players at throwaway prices in 2008 Spectrum scam has cost the government Rs.

Finance Ministry TRAI had recommended auctioning of spectrum at market rates .       Due diligence was not conducted Rules changed after the game had begun Cut-off date for applications advanced by a week Licenses issued on a first-come-first-served basis No proper auction process followed. Law Ministry. no bids invited Raja ignored advice of TRAI.

 FAVOURITISM. Swan Telecom got licenses without any prior telecom experience Swan Telecom given license even though it did not meet eligibility criteria   . CORPORATES ENCASH PREMIUM Unitech.

sold 45% stake to Etisalat for Rs. 6200 crore  All nine companies paid DoT only Rs. 1661 crore. sold 60% stake for Rs. 1537 crore. 4200 crore  Unitech Wireless got license for Rs.Swan got license for Rs.772 crore for 2G licences  . 10.

disclosed incomplete information and submitted fictitious documents to Department Of Telecommunication Violating guidelines.  85of the 122 licenses were issued to companies which suppressed facts. 1.76 lakh crores by giving away 2G spectrumn in 2008 at bargain basement prices to inexperienced new players . indulging in favouritism and costing the government Rs.

 Unitech sold to Telenor of Norway and Swantelecom sold to Etisalat of the UAE . Licenses were given January 2008 at 2001 prices of Rs. two of the telecom operators who got spectrum sold part of the equity at much higher premium.658 crore. 1.

Raja) .Chandolia (Private secretary of A.K.PARTIES INVOLVED IN THE SCAM     POLITICIANS INVOLVED: Manmohan Singh (Prime Minister) Kanimozi (daughter of DMK chief Karunanidhi) A. Raja (Ex-Minister of Communications and Information Technology) Late Pramod Mahajan (Minister of telecom 1999-2003) Arun Shourie (minister for Telecom during 2003)       BUREAUCRATS INVOLVED: Siddhartha Behuria (former telecom secretary) Pradip Baijal R.

          CORPORATIONS INVOLVED: Unitech Group Swan Telecom Loop Mobile S Tel Tata Communications Reliance Communications Videocon Telecommunications Limited Sistema Shyam Mobile (MTS) ± Sistema Mobile Russia Vodafone Essar .

   CORPORATE PERSONALITIES INVOLVED Anil Ambani: Reliance Group (ADAG) Shahid Balwa: DB reality and DB Etisalat (formerly Swan Telecom) Prashant Ruia: Essar Group   All of the above are Indian dollar billionaires and amongst the world's richest men. .

  MEDIA PERSONS AND LOBBYISTS INVOLVED: Nira Radia (former airline entrepeneur )   Barkha Dutt (NDTV journalist ) Vir Sanghvi (Hindustan Times editor) .

    PETITIONERS Subramaniam Swamy (activist lawyer and politician) Paranjoy Guha Tharkurta (journalist) Prashant Bhushan (on behalf of the Centre for Public Interest Litigation) Anil Kumar. on behalf of the civil society organisation Telecom Watchdog)  .

MAJOR FINDINGS BY TRAI          Gaps in policy implementation Telecom Commission was not consulted Views and concerns of Ministry of Finance overruled Advice of Ministry of Law and Justice were ignored Hon'ble Prime Minister's suggestions were not followed Arbitrary changes by DoT in the cut-off date. FCFS Policy was not followed Issue of license to ineligible applicants Value of additional spectrum allotted to 13 existing operators beyond contracted quantities .

TRAI ACTION REGARDING THE SCAM     To cancel nearly 70 licences of five new players including Etisalat. Videocon in 10 circles and Loop in 19 circles. Licences should be cancelled.this can be given to companies that are serious about meeting the schedule . Videocon and Uninor Licences be cancelled in at least 15 circles given to Etisalat.10 circles given to Sistema-Shyam It recommended that Unitech group's Uninor be deprived of licences in 8 circles.

 Finance Ministry has suggested a transparent auction system for awarding road projects to private developers. .  Government this year resorted to a transparent and hands-off auction system for the 3-G radio waves allocations .

P.    . Saini sent him to judicial custody till March 3. Prime Minister Manmohan Singh seemed unwilling to contradict Telecom Minister Kapil Sibal's claim that there was "zero loss³. ADAG Chairman Anil Ambani CBI headquarters over the issue of Dual Technology permit to Reliance Communication and its alleged association with Swan Telecom. Raja was Thursday sent to 14 days judicial custody by a Delhi court here. Central Bureau of Investigation (CBI) Special Judge O. determining the actual loss was very difficult. said that in the absence of an auction.  LATEST NEWS Former communications minister A.

24 lakh crore. Because Raja was the DMK¶s choice .666 crore.364 crore and Rs 69. which were based on subsequent stake sales by Swan and Unitech and S Tel's offer to DoT to buy spectrum.626 crore. . Rs 67. The prime minister admitted he had received complaints against Raja but ³I was not in a position to make up my mind if anything was seriously wrong´.   Trai shows a loss of about Rs 1. It is double the three other loss estimates of the CAG ² Rs 57.


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