2g scam final

8/2/2019 2g Scam Final

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Contents About 2G.

What is 2G spectrum scam?

Who are Involved?

Media Response. Market Response.

Steps Taken by Govt.

Political Response to Scam.

Conclution & Your Thoughts.


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History of 2G

2G spectrum technology was first launched in 1991in Finland only in the GSM mobile phones but this isnot the latest technology that we are using. As 2Gwas launched in 1991 so many other technologiesovercome it with 2.5G, 2.75G technologies but thelatest technology in present world is 3G.


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India in the World's Eyes

Wharton's Singh feels foreign investors may view corruption in India "asthe cost of doing business." But the country would attract more foreigninvestments and business interest if it had a stronger reputation forbeing non-corrupt, he says. Investors are attracted to India because"there are not too many other options that are particularly attractive ...but this can change rather quickly,

The 2G scandal is unlikely to hurt India's investment appeal globally,according to Alok Shende, principal analyst and founder director of Ascentius Consulting. "Foreign investors may actually perceive the roleof courts and rule of law, the role and independence of the CAG and thewill of the vernment to unearth this scam as a positive attempt to

spring-clean all that was wrong,"


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The 2G spectrum scan involved officials and ministers in theGovernment of India illegally undercharging mobile telephonycompanies for frequency allocation licenses, which they woulduse to create 2G subscriptions for cell phones. According to areport submitted by the Comptroller and Auditor General based onmoney collected from 3G licenses, the loss to the exchequer was

176,379 crore (US$38.27 billion). The issuing of the 2G licensesoccurred in 2008, but the scam came to public notice when the

Indian Income Tax Department investigated political lobbyist NiiraRadia and the Supreme Court of India took SubramaniamSwamy's complaints on record

What do you mean by 2G scaM?


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Who is this Person?One of the main person behind the IndiasLargest Corporate Fraud.


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WHAT ARE THE CHARGES ON FORMERTELECOM MINISTER A RAJA?

CHEAP TELECOM LICENSES

Entry fee for spectrum licenses in 2008 pegged at 2001 pricesMobile subscriber base had shot up to 350 million in 2008 from 4millioin 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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Unitech, Swan Telecom got licenses without any prior telecomexperience .

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 for Rs. 1661 crore, sold 60% stakefor Rs. 6200 crore.

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

FAVOURITISM, CORPORATES ENCASH PREMIUM


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WHISTLE BLOWERS

CPIL

&

NGOS

CBI

ED & IT

DEPT ..


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Comptroller and auditorGeneral of India

Central Bureau of Investigation

Central Vigilance

CommissionDirectorate of Enforcement


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Nira Radia , a former airline entrepreneur turnedcorporate lobbyist whose conversations with politiciansand corporate entities were recorded by thegovernment authorities and leaked creating the NiraRadia tapes controversy .

Media persons and Lobbyists involved

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

Vir Sanghvi , a Hindustan Times editor alleged to haveedited articles to reduce blame in the Nira Radiatapes.
http://en.wikipedia.org/wiki/Nira_Radiahttp://en.wikipedia.org/wiki/Nira_Radia


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Who All Benefited from This Scam ?

2G spectrum was allocated beyond contracted quantity to 9 firmsincluding Bharti, Vodafone, Idea, BSNL, Reliance, Aircel," the reportsaid.Niira Radia is said to be involved.Read her details.

Department of Telecommunications (DoT) circumvented the rules to helpSwan Telecom, which effectively acted as a front for RelianceTelecommunications. The charges in the CAG report are that Swan shouldnot have been considered for a license because Reliance Communicationsheld 10.7% stake in Swan - and according to the rules, a telecom operatorcannot own more than 10% stake in another telecom company operatingin the same service area. "Email ID of Swan Telecom was shown as that of a Reliance ADA group official


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Another big beneficiary of the 2G spectrumallocation was Unitech Wireless, which had noexperience in the telecommunication sector.

After Unitech got the license for a throwawayprice of Rs. 1,661 crore, it sold 60 per centstake to Telenor Asia for a whopping Rs. 6,200crore.


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Impact on stock markets 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 DB Realty.

Sun TV had its shares fall by 10% on the next day followingrumours of Kalanidhi Maran having stake in Kalaignar TV.

Sun TV COO refused the allegations. Swan Telecom Chief Balwawas arrested on Feb 8 and this led to rumours of links with Anil

Ambani's Reliance ADAG and it led to 20% fall of his stocks. Itsreported that nearly 2 Billion USD was eroded from his stocks.Spicejet stocks went down after reports of investigation onMaran's recent takeover of Spicejet.
http://en.wikipedia.org/wiki/Kalanidhi_Maranhttp://en.wikipedia.org/wiki/Kalanidhi_Maran


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Relationship between media&

government

Media sources such as OPEN and Outlook reported that Barkha Duttand Vir Sanghvi knew that corporate lobbyist Nira Radia wasinfluencing the decisions of A. Raja. The critics alleged that Dutt andSanghvi knew about corruption between the government and the

media industry, supported this corrupt activity, and suppressed newsreporting the discovery of the corruption.
http://en.wikipedia.org/wiki/OPEN_(Indian_magazine)http://en.wikipedia.org/wiki/Outlook_(magazine)http://en.wikipedia.org/wiki/Outlook_(magazine)http://en.wikipedia.org/wiki/OPEN_(Indian_magazine)


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The tapes leaked to the public include conversations between NiraRadia and Ratan Tata . Tata petitioned the government toacknowledge his right to privacy and demanded accountability forthe leak, with the Minister for Home Affairs , CBI, Indian Income TaxDepartment , the Department of Telecommunication , and theDepartment of Information Technology as respondents in thepetition.

Ratan Tata petitionsover Tape leak
http://en.wikipedia.org/wiki/Ratan_Tatahttp://en.wikipedia.org/wiki/Minister_for_Home_Affairs_(India)http://en.wikipedia.org/wiki/Central_Bureau_of_Investigationhttp://en.wikipedia.org/wiki/Indian_Income_Tax_Departmenthttp://en.wikipedia.org/wiki/Indian_Income_Tax_Departmenthttp://en.wikipedia.org/wiki/Department_of_Telecommunicationhttp://en.wikipedia.org/wiki/Department_of_Information_Technologyhttp://en.wikipedia.org/wiki/Department_of_Information_Technologyhttp://en.wikipedia.org/wiki/Department_of_Telecommunicationhttp://en.wikipedia.org/wiki/Indian_Income_Tax_Departmenthttp://en.wikipedia.org/wiki/Indian_Income_Tax_Departmenthttp://en.wikipedia.org/wiki/Central_Bureau_of_Investigationhttp://en.wikipedia.org/wiki/Minister_for_Home_Affairs_(India)http://en.wikipedia.org/wiki/Ratan_Tata


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Steps taken by Government

after Scam

Set up a special branch of CBI to look into the matter. Telecom Minister resigns his post after Scan. A Raja also arrested by the Police. CBI is also interacting with the brothers of A Raja and also

some business men.

Government of India take some important steps looking

forward in this Scan:


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Response to scan

In early November 2010 Jayalalithaa accused the Tamil Nadu statechief minister M Karunanidhi of protecting A.Raja fromcorruption charges and called for A. Raja's resignation. By midNovember A.Raja resigned.

In mid November the comptroller Vinod Rai issued show-causenotices to Unitech, S Tel, Loop Mobile, Datacom (Videocon), andEtisalat to respond to his assertion that all of the 85 licensesgranted to these companies did not have the up-front capitalrequired at the time of the application and were in other waysillegal.


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In response to the various allegations , the Govt of India has

replaced the then incumbent Telecom minister ,A Raja withKapil Sibal who has taken up this charge in addition to beingthe Union minister for Human Resources Development.MrSibal contends that the "notional" losses quoted are a resultof erroneous calculations and insists that the actual lossesare nil.

Response to scan


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The CBI conducted raids on Raja and four other telecomofficials - former telecom secretary Siddharth Behura, Raja'spersonal secretary R K Chandolia, member telecom K Sridharand DoT deputy director general A K Srivastava on 8

December 2010. Raja, Behura and Chandolia were arrested on Feb 2nd 2011.

Response to scan
http://en.wikipedia.org/wiki/CBIhttp://en.wikipedia.org/wiki/CBI


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Corrupted Administration Of India

If we talk about the Administration of India we all must say it is not a wellmaintained or a well centralized Administration as comparison to other

Asian countries.

Poor Administration of India is just because of the poor political leaders of our country. They used to do some unofficial work for the sake of money,this makes Administration of India weaker. This is not the only example

which makes Administration of India affected badly there are lots of other

factors which makes it worse.


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CONT. He ignored Prime Ministers advice also to

favouring some corporates,Raja flouted allnorms.

Raja dished out pan-India airwaves for Rs.1651Crore despiteS tel offering Rs.13,752crore& evenwilling to inhance this offer if the governmentwere to receive a higher bid.

Six of the nine companies that were givenlicences did not fulfill the eligibility criteria , butcommunications ministry (Raja)did not rejecttheir applications.

Actions Taken By The Government To


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Actions Taken By The Government ToPrevent The 2G Scam:

Enforcement Directorate(ED) has writeen to countries from wheremoney was received by Indian firms for details on investors &source of funds.

It is also examing role of prominent corporate lobbyist who isalleged to have player a role in influencing the way the permits

were awarded to new companies. Opposition (BJP)to press for Joint Parliamentary Committee probe. Janata Party President SubramaniamSwamy filed a complaint in

Supreme Court on Raja.So, the issue is in SC. The Telecom Regulatory has asked the Government to cancel 62 of

the 122 licences issued by former Telecom Minister A Raja. The CAG in its report said 85 of 122 licences given to six companies

, notably Uninor,Videocon,LoopMobile,STel,Etisalat andAllinzInfratech were illegal as these firms were not eligible to obtainthem.


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Cont ED quizzes NiiraRadia,who is a lobbyist & owner of Vaishnavi

Corporate Communications that handles PR for of all Tatacompanies for role in 2G Scam.

Supreme Court given the case to CBI for investigation. CBI raids Raja across the Spectrum. CBI searches Raja houses in Delhi,Chennai. SC questions Rs.10,000cr loans to new licences. Court asked CBI to examine the feasibility of probing the allocation

of radio spectrum since 2001,when BJP-Led NDA Government wasin power.

Judges appealed to be critical of a decision by SBI to lend Rs.2500 crto Uninor. CBI told to court that they will complete the investigation in 3

months,later they told they need 6 months time.


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Latest decisions sc..

122 spectrum license canceled. Sc called allocation illegal and wholly arbitrary,

capricious and contrary to public interest. 2G investigations will be monitered by cvc. First come first serve policy wrong sc TRAI will form new license issuing policy. Call rates may increase kapil sibal. Clean chit to p. chidambaram.


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Whos affected

Banks have lent 26000 crore to this 8companies.

SBI and PNB lended half the sum. Banks have invoke legal option to action this

companies properties if they dont repay.


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2g scam final

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