2. Contents
• About 2G.
• What is 2G spectrum scam?
• Who are Involved?
• Media Responses & Market
Response
• Steps Taken by Govt.
• Political Response to Scam.
• Conclusion & Your Thoughts.
3. What is 2G?
• ‘2G’ means: “Second-Generation Wireless
Telephone Technology”
• 2G spectrum was the revolutionary technology in their
time,
it comes with some benefits.
1. SMS facility was first started with 2G.
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. history of 2G
• 2G spectrum technology was first launched
in 1991 in Finland only in the GSM mobile
phones but this is not the latest technology
that we are using.
• As 2G was launched in 1991 so many other
technologies overcome it with 2.5G, 2.75G
technologies but the latest technology in
present world is 3G.
5. What do you mean by 2G
sCam?
1. T 2G spectrum scam inv v officias a minist s in t
he ol ed l nd er he
G er
ov nmentofIndiailegal under r mobil t ephony
l ly chaging e el
compa forfr
nies equencyal t l
locaion icenses, w t w d
hich hey oul
use t cr t 2Gsubscr ions forcel phones.
o eae ipt l
2. A ding t ar tsubmited byt Comptolera A or
ccor o epor t he r l nd udit
G a ba on moneycolect fr 3 l
ener l sed l ed om G icenses, t l t
he oss o
t exchequerw s
he a
176,3 cr e (US$3 .27bilion). T issuing oft 2Gl
79 or 8 l he he icenses occured in 20 8 butt sca ca t
r 0 , he m me o
publ not w t India Income T x Depat inv igaed pol ica l
ic ice hen he n a rment est t it l obbyistNiir R diaa t
a a nd he
Supr Cour ofIndiat Subr ma m Sw my's compl int on r d [W h Case t W it
eme t ook a nia a a s ecor it ype: r e
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it ),Case No:1 0, Year 1 ]. T ca det il oft ma PILfil w h t supr
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:201
6. Who is this Person?
One of the main person behind the
India’s Largest Corporate Fraud.
A. Raja is an Indian politician from the Dravida Munnetra Kazhagam(DMK) political party.
He is a member of the 15th Lok Sabha representing the Nilgiris constituency of Tamil
Nadu.
B. Raja was first elected to the Lok Sabha in 1996 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 in the UPA government. In 2007, he became cabinet minister for
communication and information technology.
C. On being re-elected in 2009 he was again appointed cabinet minister for communication
and information technology until being tainted in the 2G spectrum scam and resigning
in 2010.
7. What are the CharGes on
former teLeCom minister a
raJa?
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
4million 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.
10. media Persons and Lobbyists
inVoLVed
Nira Radia, a former airline entrepreneur turned
corporate lobbyist whose conversations with
politicians and corporate entities were recorded by
the government authorities and leaked creating
the “Nira Radia tapes controversy”.
Barkha Dutt, an NDTV journalist alleged to have
lobbied for A.Raja's appointment as minister.
Vir Sanghvi, a Hindustan Times editor alleged
to have edited articles to reduce blame in the Nira
Radia tapes.
11. 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
following rumours of Kalanidhi Maran having stake in
Kalaignar TV.
• Sun TV COO refused the allegations. Swan Telecom
Chief Balwa was 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. Its reported that nearly
2 Billion USD was eroded from his stocks .Spicejet
stocks went down after reports of investigation on
Maran's recent takeover of Spicejet.
13. reLationshiP betWeen media
&
GoVernment
• Media sources such as OPEN and Outlook reported that
Barkha Dutt and Vir Sanghvi knew that corporate lobbyist
Nira Radia was influencing the decisions of A. Raja.
• The critics alleged that Dutt and Sanghvi knew about
corruption between the government and the media industry,
supported this corrupt activity, and suppressed news
reporting the discovery of the corruption.
14. ratan tata Petitions
oVer taPe Leak
The tapes leaked to the public include conversations between
Nira Radia and Ratan Tata. Tata petitioned the government to
acknowledge his right to privacy and demanded accountability
for the leak, with the Minister for Home Affairs, CBI, Indian
Income Tax Department, the Department of
Telecommunication, and the Department of Information
Technology as respondents in the petition.
15. Persons inVoLVed in 2G
sPeCtrum sCam
• Nira Radia
• M.Karunanidhi
• A Raja (Telecom minister)
• Arun Jaitley
• Barkha dutt (Journalist)
• Arun Shourie
• Pramod Mahajan
16. CorPorations inVoLVed
Unitech Group:
A real estate company entering the telecom industry with its 2G bid; sold
60% 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 Limited
Reliance Communications
Sistema Shyam Mobile (MTS) – Sistema Mobile Russia
Tata Communications
Vodafone Essar
Loop Mobile
S Tel
Allianz Infra
17. stePs taken by
GoVernment after
sCam
Government 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 Scam.
• A Raja also arrested by the Police.
• CBI is also interacting with the brothers of A Raja and
also some business men.
18. resPonse to sCam
• In early November 2010 Jayalalithaa accused the Tamil
Nadu state chief minister M Karunanidhi of protecting
A.Raja from corruption charges and called for A. Raja's
resignation. By mid November A.Raja resigned.
• In mid November the comptroller Vinod Rai issued show-
cause notices to Unitech, S Tel, Loop Mobile, Datacom
(Videocon), and Etisalat to respond to his assertion that all
of the 85 licenses granted to these companies did not have
the up-front capital required at the time of the application
and were in other ways illegal.
19. resPonse to sCam
• In response to the various allegations , the Govt of
India has replaced the then incumbent Telecom
minister A Raja with Kapil Sibal who has taken up
this charge in addition to being the Union minister
for Human Resources Development.Mr Sibal
contends that the "notional" losses quoted are a
result of erroneous calculations and insists that the
actual losses are nil.
20. resPonse to sCam
• The CBI conducted raids on Raja and four other
telecom officials - former telecom secretary
Siddharth Behura, Raja's personal secretary R K
Chandolia, member telecom K Sridhar and DoT
deputy director general A K Srivastava on 8
December 2010.
• Raja, Behura and Chandolia were arrested on Feb
2nd 2011.
• The Supreme Court on 2ND FEB 12 ordered the
government to revoke all 122 telecoms licences
issued under a scandal-tainted 2008 sale.
22. 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.
