2g Scam Akshit

8/2/2019 2g Scam Akshit

1/20

SCAM

ByAKSHIT JAIN


2/20

Contents About 2G.

What is 2G spectrum scam?

Who are Involved?

Media Response.

Steps Taken by Govt.

Political Response to Scam.


3/20

What is 2G? 2G means: Second-Generation Wireless

Telephone Technology

2G is relatively new technology in the field of mobile.

2G is not just a network but a good technology.

2G spectrum was the revolutionary technology in their time,

it comes with some more benefits.

1. SMS facility was first started with network.

2. Safe for the use, means security level was high.3. Environmental conditions was very good for this network & no

network shortage was there.


4/20

History of 2G 2G spectrum technology was first launched

in 1991 in Finland only in the GSM mobilephones but this is not the latest technologythat we are using. As 2G was launched in1991 so many other technologies overcomeit with 2.5G, 2.75G technologies but the latesttechnology in present world is 3G.


5/20

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 [With Case type:Writ Petition(Civil),Case No:10, Year:2011]. The case details of the main PIL

filed with the supreme court is Type:Writ Petition (Civil),CaseNo:423, Year:2010.

What do you mean by 2G scaM?


6/20

A. Raja (Born May 10, 1963, Perambalur, Tamil Nadu, India) is anIndian politician from the Dravida Munnetra Kazhagam(DMK) politicalparty. He is a member of the 15th Lok Sabha representing the Nilgirisconstituency of Tamil Nadu. Raja was first elected to the Lok Sabha in1996 and first served as minister of state from 1999 to 2003. On being

re-elected to the Lok Sabha in 2004, he became a cabinet minister inthe UPA government. In 2007, he became cabinet minister forcommunication and information technology. On being re-elected in2009 he was again appointed cabinet minister for communication andinformation technology until being tainted in the 2G spectrum scam

and resigning in 2010.

Who is this Person?

One of the main person behind theIndias Largest Corporate Fraud.
http://en.wikipedia.org/wiki/Perambalurhttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Dravida_Munnetra_Kazhagamhttp://en.wikipedia.org/wiki/15th_Lok_Sabhahttp://en.wikipedia.org/wiki/Nilgiris_(Lok_Sabha_constituency)http://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Lok_Sabhahttp://en.wikipedia.org/wiki/Minister_of_statehttp://en.wikipedia.org/wiki/Cabinet_ministerhttp://en.wikipedia.org/wiki/2G_spectrum_scamhttp://en.wikipedia.org/wiki/2G_spectrum_scamhttp://en.wikipedia.org/wiki/Cabinet_ministerhttp://en.wikipedia.org/wiki/Minister_of_statehttp://en.wikipedia.org/wiki/Lok_Sabhahttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Nilgiris_(Lok_Sabha_constituency)http://en.wikipedia.org/wiki/15th_Lok_Sabhahttp://en.wikipedia.org/wiki/Dravida_Munnetra_Kazhagamhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Perambalur


7/20

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 from4million 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.


8/20

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


9/20

Corporate personalities involved

Anil Ambani - Reliance Group (ADAG)Shahid Balwa - DB Realty and DB Etisalat (Swan Telecom)Vinod Goenka - Dynamix Group

Venugopal Dhoot - Videocon GroupPrashant Ruia - Essar Group

All of them have either been question by the CBI or are

prospective suspects in the scam.
http://en.wikipedia.org/wiki/Anil_Ambanihttp://en.wikipedia.org/wiki/Shahid_Balwahttp://en.wikipedia.org/wiki/Vinod_Goenkahttp://en.wikipedia.org/wiki/Venugopal_Dhoothttp://04.%20oh%20my%20love%20by%20kunal%20ganjawala%2C%20shreya%20ghoshal.mp3/http://04.%20oh%20my%20love%20by%20kunal%20ganjawala%2C%20shreya%20ghoshal.mp3/http://en.wikipedia.org/wiki/Venugopal_Dhoothttp://en.wikipedia.org/wiki/Vinod_Goenkahttp://en.wikipedia.org/wiki/Shahid_Balwahttp://en.wikipedia.org/wiki/Anil_Ambani


10/20

Nira Radia, a former airline entrepreneur turnedcorporate lobbyist whose conversations withpoliticians and corporate entities were recorded bythe government authorities and leaked creatingthe Nira Radia tapes controversy.

Media persons and Lobbyists involved

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 the NiraRadia tapes.
http://en.wikipedia.org/wiki/Nira_Radiahttp://en.wikipedia.org/wiki/Nira_Radia


11/20

A. Raja arranged the sale of the 2G spectrum licenses below theirmarket value. Swan Telecom, a new company with few assets,bought a license for 1,537 crore (US$333.53 million). [15] Shortly

thereafter, the board sold 45% of the company to Etisalat for4,200 crore (US$911.4 million).

Similarly, a company formerly invested in real estate and nottelecom, the Unitech Group, purchased a license for 1,661 crore(US$360.44 million) and the company board soon after sold a60% stake in their wireless division for 6,200 crore (US$1.35billion) to Telenor

Shortfall of money
http://en.wikipedia.org/wiki/A._Rajahttp://en.wikipedia.org/wiki/A._Rajahttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/2G_spectrum_scamhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Telenorhttp://en.wikipedia.org/wiki/Telenorhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/2G_spectrum_scamhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/A._Raja


12/20

Relationship between media&government

Media sources such as OPEN and Outlook reported thatBarkha Dutt and Vir Sanghvi knew that corporate lobbyistNira Radia was influencing the decisions of A. Raja. Thecritics alleged that Dutt and Sanghvi knew about corruptionbetween the government and the media industry, supportedthis corrupt activity, and suppressed news reporting 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)


13/20

The tapes leaked to the public include conversations betweenNira Radia and Ratan Tata. Tata petitioned the government toacknowledge his right to privacy and demanded accountabilityfor the leak, with the Minister for Home Affairs, CBI, IndianIncome Tax Department, the Department of

Telecommunication, and the Department of InformationTechnology as respondents in the petition.

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_Telecommunicationhttp://en.wikipedia.org/wiki/Department_of_Information_Technologyhttp://en.wikipedia.org/wiki/Department_of_Information_Technologyhttp://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/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


14/20

Unitech Group:

A real estate company entering the telecom industry with its 2G bid; sold60% of its company stake at huge profit to Telenor after buying licensing(Including land values properties for towers).

Swan Telecom:It sold 45% of its company stake at huge profit to Emirates

Telecommunications Corporation (Etisalat) after buying licensing.

Videocon Telecommunications LimitedReliance CommunicationsSistema Shyam Mobile (MTS) Sistema Mobile RussiaTata CommunicationsVodafone EssarLoop MobileS TelDishnet WirelessAllianz Infra

Corporations involved
http://en.wikipedia.org/wiki/Unitech_Grouphttp://en.wikipedia.org/wiki/Swan_Telecomhttp://en.wikipedia.org/wiki/Videocon_Telecommunications_Limitedhttp://en.wikipedia.org/wiki/Reliance_Communicationshttp://en.wikipedia.org/wiki/MTS_Indiahttp://en.wikipedia.org/wiki/MTS_Indiahttp://en.wikipedia.org/wiki/MTS_Indiahttp://en.wikipedia.org/wiki/Tata_Communicationshttp://en.wikipedia.org/wiki/Vodafone_Essarhttp://en.wikipedia.org/wiki/Loop_Mobilehttp://en.wikipedia.org/wiki/S_Telhttp://04.%20oh%20my%20love%20by%20kunal%20ganjawala%2C%20shreya%20ghoshal.mp3/http://04.%20oh%20my%20love%20by%20kunal%20ganjawala%2C%20shreya%20ghoshal.mp3/http://04.%20oh%20my%20love%20by%20kunal%20ganjawala%2C%20shreya%20ghoshal.mp3/http://04.%20oh%20my%20love%20by%20kunal%20ganjawala%2C%20shreya%20ghoshal.mp3/http://04.%20oh%20my%20love%20by%20kunal%20ganjawala%2C%20shreya%20ghoshal.mp3/http://en.wikipedia.org/wiki/S_Telhttp://en.wikipedia.org/wiki/Loop_Mobilehttp://en.wikipedia.org/wiki/Vodafone_Essarhttp://en.wikipedia.org/wiki/Tata_Communicationshttp://en.wikipedia.org/wiki/MTS_Indiahttp://en.wikipedia.org/wiki/MTS_Indiahttp://en.wikipedia.org/wiki/MTS_Indiahttp://en.wikipedia.org/wiki/MTS_Indiahttp://en.wikipedia.org/wiki/Reliance_Communicationshttp://en.wikipedia.org/wiki/Videocon_Telecommunications_Limitedhttp://en.wikipedia.org/wiki/Swan_Telecomhttp://en.wikipedia.org/wiki/Unitech_Group


15/20

Steps taken byGovernment 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 andalso some business men.

Government of India take some important steps looking

forward in this Scan:


16/20

Response to scan In early November 2010 Jayalalithaaaccused the Tamil

Nadu state chief minister M Karunanidhiof protectingA.Rajafrom corruption charges and called for A. Raja'sresignation. By mid November A.Rajaresigned.

In mid November the comptroller Vinod Raiissued show-cause notices to Unitech, S Tel, Loop Mobile, Datacom(Videocon), and Etisalat to respond to his assertion that allof the 85 licenses granted to these companies did not havethe up-front capital required at the time of the applicationand were in other ways illegal.


17/20

In response to the various allegations , the Govt ofIndia has replaced the then incumbent Telecomminister ,A Raja with Kapil Sibal who has taken upthis charge in addition to being the Union ministerfor Human Resources Development.Mr Sibalcontends that the "notional" losses quoted are aresult of erroneous calculations and insists that the

actual losses are nil.

Response to scan


18/20

The CBI conducted raids on Raja and four othertelecom officials - former telecom secretarySiddharth Behura, Raja's personal secretary R KChandolia, member telecom K Sridhar and DoT

deputy director general A K Srivastava on 8December 2010.

Raja, Behura and Chandolia were arrested on Feb2nd 2011.

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


19/20

Corrupted Administration Of IndiaIf we talk about the Administration of India we all must say it is not awell maintained or a well centralized Administration as comparison

to other Asian countries.

Poor Administration of India is just because of the poor politicalleaders of our country. They used to do some unofficial work for thesake of money, this makes Administration of India weaker. This isnot the only example which makes Administration of India affected

badly there are lots of other factors which makes it worse.


20/20

Documents

2g Scam Akshit