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Presented by

Dilna Saseendran

Kavyaarasi

Shyne Raju.M

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What is 2G?

Originated in Europe

Commercially launched by Finland in 1991

Used in more than 200 countries in the worldtoday

Benefits of digital 2g technology:- Digital signals require very little battery power- Reduce noise, improves clarity of voice in calls- Improved privacy

- Digital data services: SMS and email technology

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Comparing 2G and 3G2G (second generation)

-- Launched in finland:1991-- Medium security-- No additional features

3G(third generation)

-- Launched in japan:2001-- High security-- More additional features (mob TV, videotransfers, GPS)

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What is 2G scam?

2G licenses issued to private telecomplayers at throwaway prices in 2008

CAG(Controller and Auditor General of India)Spectrum scam is the biggest scam in

India has cost the government Rs. 1.76 lakhcrore

CAG: Rules and procedures flouted whileissuing licenses

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Persons involved- A Raja (Telecom Minister)

- Kanimozhi karunanidhi (Member of Rajya Sabah)

- Siddhartha behura(former secretary of DoT in UP)

- Ratan Tata

- PJ Thomas(former secretary of DoT in Kerala)Pradip baijlal (civil servant)

Arun Jaitley

Arun Shourie

Pramod Mahajan

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WHAT ARE THE CHARGES ONFORMER TELECOM MINISTER ARAJA?CHEAP TELECOM LICENSES

Entry fee for spectrum licenses in 2008 pegged at 2001prices

Mobile subscriber base had shot up to 350 million in 2008from 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

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Corporations involved Unitech Group

Swan Telecom

Loop Mobile

Videocon Telecommunications Limited

S Tel

Reliance Communications

Sistema Shyam Mobile (MTS)

Sistema Mobile Russia

Vodafone Essar

Dishnet Wireless

Allianz Infra

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Corporate Personalitiesinvolved Anil Ambani - Reliance Group (ADAG)

Shahid Balwa - DB Realty and DB Etisalat (SwanTelecom)

Vinod Goenka - Dynamix Group

Venugopal Dhoot - Videocon Group

Prashant Ruia - Essar Group

All of them have either been question by the CBI or areprospective suspects in the scam.

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Media personalities involved

Nira Radia, a former airline entrepreneur turnedcorporate lobbyist whose conversations withpoliticians and corporate entities were recordedby the government authorities and leaked

creating the Nira Radia tapes controversy

Barkha Dutt, an NDTVjournalist alleged to havelobbied for A. Raja's appointment as minister.

Vir Sanghvi, a Hindustan Times editor allegedto have edited articles to reduce blame in theNira Radia tapes.

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FAVOURITISM, CORPORATESENCASH PREMIUM

Unitech, Swan Telecom got licenses without any priortelecom experience

Swan Telecom given license even though it did not meet

eligibility criteria

Swan got license for Rs. 1537 crore, sold 45% stake toEtisalat for Rs. 4200 crore

Unitech Wireless got license for Rs. 1661 crore, sold 60%stake for Rs. 6200 crore

All nine companies paid DoT only Rs. 10,772 crore for 2Glicences

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Steps taken by government for 2G scam

Government of India take some important stepslooking forward in this Scam:

Set up a special branch of CBI to look into thematter.

Telecom Minister resigns his post after Scam.

A Raja also arrested by the Police.

CBI is also interacting with the brothers of A Rajaand also some business men.

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Reports

Telecom secretary Dinesh Kumar Mathur hastold the CBI that despite being the top mostofficer in the DoT he was completely unaware

of two controversial letters Raja wrote toManmohan Singh endorsing his 2G allocationpolicy.

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Indian penal code 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 electronicrecord),

-420 (cheating and dishonestly inducing delivery of property)

- 109 (abetment if the act abetted is committed inconsequence, and where no express provision is made for itspunishment)

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Impact on stock market The first casualty in Stock Markets once Raja was

arrested was DB Realty.

DB Realty had given 200+ crores to Kalaignar TV(owned by Karunanidhi's Wife).

The news led to 20% fall in the stock prices of DBRealty.

Sun TV had its shares fall by 10% on the next dayfollowing rumors of Kalanidhi Maran having stake inKalaignar TV.

Swan Telecom Chief Balwa was arrested on Feb 8 andthis led to rumors of links with Anil Ambani's RelianceADAG and it led to 20% fall of his stocks.

Spice jet stocks went down after reports ofinvestigation on Maran's recent takeover of Spice jet.

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India in worlds eye

According to Alok Shende, principal analystand founder director of Ascentius Consulting.

"Foreign investors may actually perceive therole of courts and rule of law, the role andindependence of the CAG and the will of theVermont to unearth this scam as a positiveattempt to spring-clean all that was wrong

Wharton's Singh feels foreign investors mayview corruption in India "as the cost of doingbusiness."

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Corrupted administration ofIndia Poor Administration of India is just because of

the poor political leaders of our country.

They used to do some unofficial work for thesake of money, this makes Administration ofIndia weaker.

This is not the only example which makesAdministration of India affected badly there arelots of other factors which makes it worse.

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