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8/3/2019 Background Color 2G Scam

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What is 2G ? 2G is short for second-generation wireless telephone

technology.

It was commercially launched on the GSM standardin Finland in 1991. Benefits of 2G network:

Digital Encryption. Introduction ofData Services Downloadable media content. Ringtones were downloaded and paid for. Mobile advertising was also introduced.


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What is 2G Spectrum Scam ?y In 2008,the UPA, issued 122 new telecom licenses to several

domestic companies with little or no experience in telecomsector, and at a price set in 2001.

y The shortfall between the money collected and the moneywhich the law mandates to be collected is 1.76 lakh crorerupees.


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Howwas it known?y The issuing of the 2G licenses occurred in 2008,

y But the scam came to public notice when the Indian

Income TaxD

epartment investigated political lobbyistNiira Radia

y At the same time the Supreme Court of India tookSubramaniam Swamy's complaints on record.


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Investigating Agencies

Comptroller and auditorGeneral of India Central Bureau of Investigation

Central Vigilance Commission Directorate of Enforcement


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Flowofevents

On September 24, 2007 DoT issues a press release inviting applicationsfor issue of spectrum.

Without Cabinet approval Raja allots Cross Technology to R Com, TataTeleservices and Shyam Telecom in October 2007 at a rate fixed in 2001.

A Raja becomes Union Minister of Communications and IT on May 16,2007.


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Flowofevents

Reversal of Cut off dates by issuance of press release byDoT (Jan 10, 2008) at2:45pm The press release asked the new players to remit fee (huge money

ranging from Rs.1500 cr- Rs.1600 cr) between 3:30pm -4:30pm on same day.

Law Minister HR Bhardwaj rejects Rajas plan. Directs to constitute anEmpowered Group of Ministers (eGoM) to form transparent procedures for

2G Spectrum allocation and new licenses.

Objections from the Telecom Secretary, D S Mathur and Member ofDoTManju Madhvan on the point of Transparent auctioning and Competitive

bidding.


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Flowofevents

Offloading of Shares:

1.Swan offloads 45 per cent shares to UAE based Etisalat for Rs.4500 Cr. (Swan gotlicense for Rs.1530Cr).

2.Unitech offloads 60 per cent of shares to Norway based Telenor for Rs.6200Cr.(Unitech got license for Rs.1621 cr).

On Sept 13, 2008, Raja forces BSNL CMD Kuldip Goyal to enter into a un-precedented MoU with Swan


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Flowofevents

CBI & ED file FIR and start probing the spectrum scam

STel files case against DoT in theDelhi HC against the reversal of cut-off dates.

Delhi HCs PIL hearing against FCFS policy.


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Flowofevents

The CAGs report in Parliament on November 16, 2010 finding apresumptive loss up to Rs.1.76 lac crore.

Raja finally submits resignation on November 14, 2010.

Hearing of cases filed in Supreme Court by Subramanian Swamy andPrashant Bhushan started.


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SPECTRUNOMICS

CategoryCategory Loss as per CAGLoss as per CAGbased on 3Gbased on 3Gauction(Rs.inauction(Rs.inCrore)Crore)

Loss based onLoss based onTrais new2G/3GTrais new2G/3GValue(Rs. In crore)Value(Rs. In crore)

122 New licences 1,02,498 54,323.9

35Dual Tech Licences 37,154 19,691.6

Spectrum Held in

Excess of 6.2MHZ

36,993 50,310.5

Total Loss 1,76,645 1,24,326.0

Source:CAG report,Nov 2011&TRAIReport on 2G spectrum of Feb 2011


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Andimuthu

Raja has come a long way from being a

lawyer in rural Tamil Nadu.

The formerTelecom and IT minister who made the 2Gspectrum scam.

Allotted the licence which are given in 2008 at 2001prices .


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Bureaucrats involvedNAME CHARGES

1.S.BehuraFormer telecom secretary who served intheDOT at the time of the 2Gallocation.

2.Pradip Baijal A bureaucrat who is alleged to have

implemented policies that favoredcertain Telecom companies when hewas heading the TRAI.


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Bureaucrats involvedNAME CHARGES

3.Chandolia Private secretary of Raja during UPA-I when thelicences were awarded.

He was an Indian Economic Service officer of the1984 batch cadre.

When Raja became the Telecom Minister onceagain in UPA-II, Chandolia had been promoted to the

Joint Secretary rank.


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Media persons and Lobbyists involvedName Allegation

1.Nira Radia A former airline entrepreneur turnedcorporate lobbyist whose conversations withpoliticians & corporate entities were recorded

by govt authorities & leaked .2.BarkhaDutta An NDTVjournalist alleged to have lobbied

for A. Raja's appointment as minister.

3.Vir Sangavi AHindusthan Times editor alleged to haveedited articles to reduce blame in the Nirra

Radia tapes.


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Corporations involved Unitech Group - sold 60% of its company stake at huge profit

to Telenor after buying licensing Swan Telecom -sold 45% of its company stake at huge profit to

Emirates Telecommunications Corporation after buyinglicensing.

Loop Mobile VideoconTelecommunications Limited S Tel RelianceCommunications Sistema Shyam Mobile (MTS) Sistema MobileRussia Tata Communications Vodafone Essar Dishnet Wireless Allianz Infra


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Petitioners in 2 G Scam case to SCName About him

1. Subramaniam Swamy Activist lawyer and politicianActivist lawyer and politician

2. Paranjoy GuhaThakurta

A journalist who was one among the veryA journalist who was one among the veryfirst to write on the irregularities in thefirst to write on the irregularities in theawarding of 2G spectrum allocation by theawarding of 2G spectrum allocation by the

Telecom MinistryTelecom Ministry

3. Prashant Bhushan On behalf of The Centre for PublicOn behalf of The Centre for PublicInterest Litigation.Interest Litigation.


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ARREST

Raja, Behura and Chandolia were arrested on Feb

2nd 2011


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Viewof present Telecom minister

Kapil Sibal replaces ARaja as the TelecomMinister in addition to being theHRD Minister.

Mr. Sibal contends that "notional" losses

quoted are a result of erroneous calculations &insists that actual losses are nil.


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Latest developmentsy Araja could have got bribes to the tune of 3000 crs as perCBI &

Enforcement Direcotrate.

y Arrest of Shahid Balwa by the CBI.

y Shourie to appear beforeCBI on Feb 21.y The new licenses got huge foreign investments. One of them

brought in share capital worth S$625 million.

y The licenses attracted investments inUS, Japanese, andMauritian currency.

y CBI accused Public sector Bank including SBI of stepping out ofinternal rules to advanceRs.11000crore on the basis of irregularlyallotted 2G spectrum.

y Govt may agree on JPC.


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JPCWhat is JPC?

JPC is appointed to inquire into particular matter which is

important for the nation.T

his formed when motion is adopted byone house and it is supported or agreed by the other house.

.

How many persons can be members of JPC?

The rule is simple -The Lok Sabha members are double compared to Rajya Sabha.


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Why the JPC was established?JPC was instituted to inquire into the

1.Bofors contract

2.Harshad Mehta scandal.

3.Stock Market Scam.

4. Pesticide residues in soft drinks


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What are the powers ofJPC?1. It can collect oral or written evidence from the experts.

2. The proceedings of parliamentary committees areconfidential.

3. Normally ministers are not called to give evidence.

4. It can inspect all documents related with the inquiry.

5. It can send summons to people to appear before them, if

person does not obey summons it is considered as contempt ofHouse.

6. The Speaker has the final word on any dispute over calling forevidence


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SEASON OF SCAMS


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SourcesSources

yWikipedia.

y The Times of India.

yArticles on 2G Spectrum.yWebsites.


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WANT TO KNOW ANY THINGWANT TO KNOW ANY THINGMORE???MORE???


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