2G SCAM

SUBMITTED TO SUBMITTED BY
BRIG P.K. HOOGAN ARSH KOUL
ISHNEET

WHAT IS 2G
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.

WHAT IS 2G SCAM
2G licenses issued to private telecom players at throwaway
prices in 2008
Spectrum scam has cost loss to the government
Rs. 1.76 Lakh crore
Rules and procedures flouted while issuing licenses.


WHO CAUSED IT?
The then telecom minister Andimuthu Raja
caused the 2G scam
A Raja caused the loss of $40 billion to the
Government by selling the Licenses of network
to the private players without following any
rules and regulations.

ALLEGATIONS
CHEAP TELECOM LICENCES
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 forRs.1 537 crore, sold 45% stake to
Etisalat for Rs.4 200 crore
UnitechWireless got license for Rs.1661 crore, sold 60%
stake for Rs.6 200 crore
All nine companies paid Dot only Rs.10,772 crore for 2G
licences

REPORTS
Telecom secretary Dinesh Kumar Mathur has told
the CBI that despite being the top most officer in the
DoT he was completely unaware of two
controversial letters Raja wrote to Manmohan Singh
endorsing his 2G allocation policy.

PEOPLE INVOLVED
Kanimozhi who was named as co-conspirator with A Raja
Shahid Balwa the promoter of the swan telecom who according
to CBI had central role in this scam
Unitech chief Sanjay Chandra who was involved for cheating
Three top senior executives of ADAG : Mr Gautam Doshi ,
Mr Hari Nair , Mr Surendra Pipri
Former telecom secretory Siddarth Behura who shut the
counters for other telecom players
At the last Mr R.K.Chandolia who was the personal
secretary of Raja .
All of them have either been question by the CBI or are
prospective suspects in the scam
A RAJA
SHAHID
BALWA
KANIMOZHI
R K CANDOLIA SIDDARTH
BEHRUA
NEERA RADIA
COMPANIES INVOLVED
Allianz Infra
Aircel
Dishnet Wireless
Loop Mobile
Sistema Shyam Mobile (MTS) Sistema Mobile Russia
Reliance Communications
S Tel
Swan Telecom
Tata Tele Services
Unitech Group
Videocon Telecommunications Limited
Vodafone Essar
Virgin Mobile India

MEDIA PERSON INVOLVED
Neera Radia, a former airline entrepreneur turned corporate
lobbyist whose conversations with politicians and corporate
entities were recorded by the government authorities. The
contents were later leaked by unknown parties creating the Nira
Radia tapes controversy
Barkha Dutt, a journalist who works with NDTV also was
involved in the lobbying of ministers in the government, but
was not given any coverage or publicity in this matter by her
fellow colleagues
Vir Sanghvi, a Hindustan Times editor alleged to have edited
articles to reduce blame in the Nira Radia tapes

EFFECTS
The investor sentiment has been negative and telecom stocks
plunged in India.

The other side of the argument is that the telecom sector is
seeing a lot of growth opportunities and going ahead there will
be multiple avenues for the telecom service providers to boost
their revenues.
The telecom companies are now looking at data services
to enhance their market share and voice services will
eventually become a matter of complimentary services.

The advent of 3G has also considerably lifted investor
interests in the stocks and there is a hope that innovative
business models and VAS will be the game changers for
the telecom stocks

REMEDIAL MEASURES
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

2 G
SCAM
1. AUDIT
2. DOCUMENTATION
METHOD
1. INCOME TAX
2. ED
1. CAG
MATERIAL
MANAGEMENT +
MANPOWER
INDIA IN WORLDS EYE
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
TOTAL AMOUNT WITH A RAJA
AS PER THE REPORTS OF CBI, A.RAJA HAS
GOT 7 800 CRORE IN HIS SWISS BANK
4 ACCOUNTS