Submitted to:-

Dr. Indrajit Bose

Asst.Prof.

Gurunanak Institute Of Technology

Submitted By:-

Anik Chowdhury (86)Arnab Das (87)Banhi Sanyal (88)

CSE DEPT.

OBJECTIVE OF THE PRESENTATION:● To gain an insight into what is 2G Spectrum Scam

● What is CAG

● What is 2g spectrum scam

● CAG report on the scam

● About the allegations against A.Raja

● Steps taken by the GOVERNMENT OF INDIA

● Corrupted administration of India

It is a term used in telecommunication sector. It is a spectrum which support 2G technology. High bandwidth is required for this purpose. 2G means second-generation wireless telephone technology. Second generation 2G cellular telecom networks were commercially launched on the GSM standard in Finland in 1991.

2G introduced data services for mobile, starting with SMS text messages.

  The CAG (Comptroller and Auditor General) is a typical file-based government auditing agency. It stresses on reporting deviations from set procedures and policies and fails to recognise that the deviations have resulted in speeding up economic growth.

According To Comptroller and Auditor General(CAG) –

o 2G licenses issued to private telecom players at throwaway prices in 2008

o 2G spectrum allocation had caused revenue loss of Rs 1.76 lakh crore

o Rules and procedures flouted while issuing licenses

Here are some of the points made by the CAG Report: 85 firms suppressed facts, gave fictitious papers to DoT DoT kept spectrum pricing issue out of GoM's purview A Raja ignored Prime Minister's, FM's and Law Ministry's

advice Spectrum was rare national asset, should have been

auctioned 2G spectrum allocated to new players at throw away

prices Undue advantage to Swan Telecom in allocation of

spectrum Email ID of Swan Telecom shown as that of a Reliance

ADA group official

Spectrum allocated beyond contracted quantity to 9 firms including Bharti, Vodafone, Idea, BSNL, Reliance, Aircel

Idea and Spice not given spectrum on grounds of proposed merger- this was against the rules

Allocation of 2G spectrum led to loss of Rs. 1.76 lakh crore

DoT did not follow its own practise of first-come-first-serve in letter and spirit

Calculation of loss based on 3G auction earlier this year Cut-off date for license letters advanced arbitrarily by a

week This went against time-tested procedures of

government functioning Entire process lacked transparency Undertaken in arbitrary and inequitable manner

Unitech has got license for 22 circle’s and it paid the Rs.1658 crore license fees for each circle but the company sale their 67.25% equity for Rs.6120 crore to the telenor a company of Norway.

Telenor has valued the spectrum of the company CAG said that if we see this deal then the fees

for the allotment of license is between Rs.7758 crore to Rs.9100 crore on the other way if it was not their then the govt. will get the fees between Rs.58000 crore to Rs.68000 crore for the 122 license.

Andimuthu Raja has come a long way from being a lawyer in rural Tamil Nadu.

The former Communication minister who make the 2G spectrum scam

CHEAP TELECOM 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.

 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 for Rs. 1661 crore, sold 67.25% stake for Rs. 6200 crore.

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

STEPS TAKEN BY GOVERNMENT AFTER SCAMGovernment of India take some important steps looking forward in this 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.

CORRUPTED ADMINISTRATION OF INDIA

If we talk about the Administration of India we all must say it is not a well maintained

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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