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    2G Spectrum Scam (Mother of All Scam) : Presented By: Sangeeta Saket Priyanka

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    sushildas299
    The document summarizes the 2G spectrum scam that occurred in India in 2008. Key points: - Telecom minister A. Raja issued licenses to private companies at 2001 prices, despite a substantial increase in market rates and subscribers, costing the government Rs. 1.76 lakh crore. - Rules were changed to benefit certain companies. Licenses were given to inexperienced companies who then sold shares at much higher prices. - The scam involved politicians like Manmohan Singh and A. Raja, bureaucrats, corporate entities like Reliance and Essar, and lobbyists. TRAI and others found gaps in policy and arbitrary actions. - Investigations led to cancellation of

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    2G Spectrum Scam (Mother of All Scam) : Presented By: Sangeeta Saket Priyanka

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    sushildas299
    72 views20 pages
    The document summarizes the 2G spectrum scam that occurred in India in 2008. Key points: - Telecom minister A. Raja issued licenses to private companies at 2001 prices, despite a substantial increase in market rates and subscribers, costing the government Rs. 1.76 lakh crore. - Rules were changed to benefit certain companies. Licenses were given to inexperienced companies who then sold shares at much higher prices. - The scam involved politicians like Manmohan Singh and A. Raja, bureaucrats, corporate entities like Reliance and Essar, and lobbyists. TRAI and others found gaps in policy and arbitrary actions. - Investigations led to cancellation of

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    The document summarizes the 2G spectrum scam that occurred in India in 2008. Key points: - Telecom minister A. Raja issued licenses to private companies at 2001 prices, despite a substantial increase in market rates and subscribers, costing the government Rs. 1.76 lakh crore. - Rules were changed to benefit certain companies. Licenses were given to inexperienced companies who then sold shares at much higher prices. - The scam involved politicians like Manmohan Singh and A. Raja, bureaucrats, corporate entities like Reliance and Essar, and lobbyists. TRAI and others found gaps in policy and arbitrary actions. - Investigations led to cancellation of

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    72 views20 pages

    2G Spectrum Scam (Mother of All Scam) : Presented By: Sangeeta Saket Priyanka

    Uploaded by

    sushildas299
    The document summarizes the 2G spectrum scam that occurred in India in 2008. Key points: - Telecom minister A. Raja issued licenses to private companies at 2001 prices, despite a substantial increase in market rates and subscribers, costing the government Rs. 1.76 lakh crore. - Rules were changed to benefit certain companies. Licenses were given to inexperienced companies who then sold shares at much higher prices. - The scam involved politicians like Manmohan Singh and A. Raja, bureaucrats, corporate entities like Reliance and Essar, and lobbyists. TRAI and others found gaps in policy and arbitrary actions. - Investigations led to cancellation of

    Copyright:

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    Download as ppt, pdf, or txt
    of 20

    2G SPECTRUM SCAM

    (mother of all scam)

    PRESENTED BY:
    SANGEETA
    SAKET
    PRIYANKA
    WHO IS Andimuthu Raja?

     Born in May 1963 in Perambalur, Tamil Nadu


     Got a BSc and then his law degrees
     Was a student leader of the Dravidar Kazhagam, the parent body
    of the DMK
     A block level leader he rose quickly and was first elected to the
    Lok Sabha in 1996.
     Becoming Cabinet Minister at the age of 35 - in the NDA
    government in 1999
     Became Telecom Minister in May 2007
    Procedure adopted in issue of UAS
    Licenses and allotment of spectrum
    WHAT IS SPECTRUM SCAM?
     2G licenses issued to private telecom
    players at throwaway prices in 2008
     Spectrum scam has cost the government
    Rs. 1.76 lakh crore
     Rules and procedures flouted while
    issuing 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
     Due diligence was not conducted
     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 60% stake for Rs. 6200 crore


     All nine companies paid DoT only Rs. 10,772 crore for
    2G licences
     85of the 122 licenses were issued to companies which
    suppressed facts, disclosed incomplete information and
    submitted fictitious documents to Department Of
    Telecommunication
     Violating guidelines, indulging in favouritism and
    costing the government Rs. 1.76  lakh crores by giving
    away 2G spectrumn in 2008 at bargain basement prices
    to inexperienced new players
     Licenses were given January  2008 at 2001 prices of
    Rs. 1,658 crore, two of the telecom operators who got
    spectrum sold part of the equity at much higher
    premium.

     Unitech sold to Telenor of Norway and Swantelecom


    sold to Etisalat of the UAE
    PARTIES INVOLVED IN THE SCAM
     POLITICIANS INVOLVED:
     Manmohan Singh (Prime Minister)
     Kanimozi (daughter of DMK chief Karunanidhi)
     A. Raja (Ex-Minister of Communications
    and Information Technology)
     Late Pramod Mahajan (Minister of telecom 1999-2003)
     Arun Shourie (minister for Telecom during 2003)

     BUREAUCRATS INVOLVED:
     Siddhartha Behuria (former telecom secretary)
     Pradip Baijal
     R.K.Chandolia (Private secretary of A.Raja)
     CORPORATIONS INVOLVED:
     Unitech Group
     Swan Telecom
     Loop Mobile
     S Tel
     Tata Communications
     Reliance Communications
     Videocon Telecommunications Limited
     Sistema Shyam Mobile (MTS) – Sistema Mobile
    Russia
     Vodafone Essar
     CORPORATE PERSONALITIES INVOLVED
     Anil Ambani: Reliance Group (ADAG)
     Shahid Balwa: DB reality and DB Etisalat (formerly Swan
    Telecom)
     Prashant Ruia: Essar Group

     All of the above are Indian dollar billionaires and amongst the
    world's richest men.
     MEDIA PERSONS AND LOBBYISTS INVOLVED:
     Nira Radia (former airline entrepeneur )

     Barkha Dutt (NDTV journalist )


     Vir Sanghvi (Hindustan Times editor)
     PETITIONERS
     Subramaniam Swamy (activist lawyer and politician)
     Paranjoy Guha Tharkurta (journalist)
     Prashant Bhushan (on behalf of the Centre for Public Interest
    Litigation)
     Anil Kumar, on behalf of the civil society organisation Telecom
    Watchdog)
    MAJOR FINDINGS BY TRAI
     Gaps in policy implementation
     Telecom Commission was not consulted
     Views and concerns of Ministry of Finance
    overruled
     Advice of Ministry of Law and Justice were ignored
     Hon'ble Prime Minister's suggestions were not followed
     Arbitrary changes by DoT in the cut-off date.
     FCFS Policy was not followed
     Issue of license to ineligible applicants
     Value of additional spectrum allotted to 13 existing operators
    beyond contracted quantities
    TRAI ACTION REGARDING THE SCAM
     To cancel nearly 70 licences of five
    new players including Etisalat,
    Videocon and Uninor
     Licences be cancelled in at least 15
    circles given to Etisalat,10 circles given to Sistema-Shyam
     It recommended that Unitech group's Uninor be deprived of
    licences in 8 circles, Videocon in 10 circles and Loop in 19
    circles.
     Licences should be cancelled,this can be given to companies that
    are serious about meeting the schedule
     Finance Ministry has suggested a transparent auction
    system for awarding road projects to private developers.

     Government this year resorted to a transparent and


    hands-off auction system for the 3-G radio waves
    allocations .
     LATEST NEWS
      Former communications minister A. Raja
    was Thursday sent to 14 days judicial custody
    by a Delhi court here. 
     Central Bureau of Investigation (CBI) Special
    Judge O.P. Saini sent him to judicial custody till March 3.
     ADAG Chairman Anil Ambani CBI headquarters over the issue
    of Dual Technology permit to Reliance Communication and its
    alleged association with Swan Telecom. 
     Prime Minister Manmohan Singh seemed unwilling to contradict
    Telecom Minister Kapil Sibal's claim that there was "zero loss“.
    said that in the absence of an auction, determining the actual loss
    was very difficult. 
     Trai shows a loss of about Rs 1.24 lakh crore.
     It is double the three other loss estimates of the CAG — Rs
    57,666 crore, Rs 67,364 crore and Rs 69,626 crore, which were
    based on subsequent stake sales by Swan and Unitech and S Tel's
    offer to DoT to buy spectrum.
     The prime minister admitted he had received complaints against
    Raja but “I was not in a position to make up my mind if anything
    was seriously wrong”. Because Raja was the DMK’s choice .
    THANK
    YOU

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