2G SCAM BRIEF

2G licenses issued to private telecom players at throw away prices in 2008. The issuing of licenses occurred in 2008, but the scam came to public notice when the Indian Income Tax Department was investigating Nira Radia. A Raja, the then telecom minister, was heavily blamed. He was charged and convicted. CAG: Spectrum scam has cost the government Rs.1.76 lacs crores.

ALLEGATIONS ON FORMER TELECOM MINISTER A RAJA

CHEAP TELECOM LICENSES Entry fee for spectrum licenses in 2008 pegged at 2001 prices Mobile subscriber base had shot up to 350million in 2008 from 4 million in 2001. NO PROCEDURES FOLLOWED 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, no bids invited. Raja ignored advice of TRAI, Law Ministry, Finance Ministry. TRAI had recommended auctioning of spectrum at market rates.

FAVOURITISM, CORPORATES ENCASH PREMIUM Unitech, Swan Telecom got licenses without any prior telecom experience. Swan Telecom given license even though it did not meet eligibility criteria. Swan got license for Rs.1537 crore, sold 45% stake to Etisalat for Rs.4200 crore. Unitech Wireless got license forRs.1661 crore, sold 60% stake for Rs.6200 crore. All nine companies paid DoT only Rs.10,772 crore for 2G licences resulting in an estimated loss of 1.76 lakh crore . The 77-page report of the CAG tabled in Parliament said due diligence was not followed and even the recommendations of the telecom regulator TRAI were "not followed in spirit". The report said the "presumptive" loss caused to the exchequer through spectrum allocation to 122 licences in 2007-08 was Rs 1,76,645 crore . It pegged the figures on the basis of 3G auction held earlier this year in which the government mopped up over Rs 67,000 crore (Rs 670 billion).

EMINENT PERSONALITIES INVOLVED

Anil Ambani ADAG group Prashant Ruia Essar group Kanimozhi Member of Rajya Sabha Barkha Dutt NDTV Ratan Tata Tata group Nira Radia Political lobbyist

SATYAM SCAM

INTRODUCTION
Satyam was established in 1987
4th fastest growing IT company in India 9% market share 40000 employees Revenue $2.1 billion It is the first company of India listed in three international exchanges i.e. NYSE, DOW, and EURONFXT was converted into public ltd Co. in Aug 1991

THE DISASTROUS REVELATION

The Black day: 7th January, 2009 Accounting fraud over 7800 crore rupees From past 7 years a accounting books were cooked: - Profits were inflated - Understated liability and overstated debts - Accrued interests - The gaps in the balance sheet were due to the inflated profits

SALVAGING SATYAM
To stabilize the sinking Satyam Computers, the Government nominated banker Deepak Parekh, IT expert Kiran Karnik and former SEBI member C Achutan to the IT companys board On 13th April 2009, 46% stake in Satyam was purchased by Mahindra & Mahindra owned company Tech Mahindra, Effective July 2009, Satyam rebranded its services under the new Mahindra management as "Mahindra Satyam"

STAMP PAPER SCAM 2003

 Abdul Karim Telgi earned money by printing fake stamp papers in India. He appointed 300 people as agents who sold the fakes to bulk purchasers, including banks, insurance companies, and share-broking firms.
The size of the scam was estimated to be more than 20,000 crore (US$4.46 billion)

 It required the involvement of many police officers and other government employees. On 28 June, 2007 Telgi was sentenced to rigorous imprisonment for 13 years for the scandal. He was also fined a Rs 100 crore.

Serial number Various aspects

Investments in crores

1
2 3 4 5

Stadium facilities
CWG village Parking facility Opening and closing ceremony Beautification of streets

4429
1038 473 800 344

6
7 8 9 10

Rent for CWG headquarters

Metro expansion Airport modernization A power plant in Bavana Hospitality expenses

175
16887 5400 35000 2273

Total

67089

List of scams
Wrong justification of rates while procuring items Poor quality of construction Improper tender process Grant of work to ineligible firms Payment of crores of rupees for non existent items Use of inferior products

Impacts
India perceived to be more corrupt after CWG scam The political environment changed The country suffered a huge strain on cost due to excess budget Increased pollution, traffic jams and deforestation Unreliability of the country for future sporting events Displacement of tribals and farmer etc Promotion of child labour and prostitution during the games

Mining Scam
People involved: Janardhana Reddy Karunakara Reddy B. Sriramulu Somashekhara Reddy B. S. Yeddyurappa