V Prepared by the TERRIFIC TEN
V GMCS 3rd Feb 2011 Batch.
÷
1 What is 2G spectrum?
2 What is 2G Spectrum scam?
3 Flow of events
4 Spectrumonomics
5 CAG report
6 People involved
7 JPC
8 Latest developments
9 Conclusion
10 Sources
V 2G is short for second-generation wireless
telephone technology.
V It was commercially launched on the GSM
standard in Finland in 1991.
V u
0
V Gigital Encryption.
V Introduction of Gata Services
V Gownloadable media content.
V Ringtones were downloaded and paid for.
V Mobile advertising was also introduced.
V In 2008,the UPA, issued 122 new telecom licenses to several
domestic companies with little or no experience in telecom
sector, and at a price set in 2001.
V The shortfall between the money collected and the money
which the law mandates to be collected is 1.76 lakh crore
rupees.
V The issuing of the 2G licenses occurred in 2008,
V But the scam came to public notice when the Indian Income
Tax Gepartment investigated political lobbyist Niira Radia
V At the same time the Supreme Court of India took
Subramaniam Swamy's complaints on record.
m
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A Raja becomes Union Minister of Communications and IT on May 16,
2007.
Without Cabinet approval Raja allots Cross Technology to R Com, Tata
Teleservices and Shyam Telecom in £ctober 2007 at a rate fixed in 2001.
£n September 24, 2007 GoT issues a press release inviting applications
for issue of spectrum.
£bjections from the Telecom Secretary, G S Mathur and Member of GoT Manju
Madhvan on the point of Transparent auctioning and Competitive bidding.
Law Minister HR Bhardwaj rejects Rajaǯs plan. Girects to constitute an
Empowered Group of Ministers (eGoM) to form transparent procedures for 2G
Spectrum allocation and new licenses.
Reversal of Cut off dates by issuance of press release by GoT (Jan 10, 2008) at
2045pm The press release asked the new players to remit fee (huge money
ranging from Rs.1500 cr- Rs.1600 cr) between 3030pm -4030pm on same day.
£n Sept 13, 2008, Raja forces BSNL CMG Kuldip Goyal to enter into a un-
precedented MoU with Swan
£ffloading of Shares0
1.Swan offloads 45 per cent shares to UAE based Etisalat for Rs.4500 Cr. (Swan
got license for Rs.1530Cr).
2.Unitech offloads 60 per cent of shares to Norway based Telenor for Rs.6200Cr.
(Unitech got license for Rs.1621 cr).
Gelhi HCǯs PIL hearing against FCFS policy.
STel files case against GoT in the Gelhi HC against the reversal of cut-off dates.
CBI & EG file FIR and start probing the spectrum scam
Hearing of cases filed in Supreme Court by Subramanian Swamy and
Prashant Bhushan started.
Raja finally submits resignation on November 14, 2010.
The CAGǯs report in Parliament on November 16, 2010 Ȃ finding a
presumptive loss up to Rs.1.76 lac crore.
m m
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122 New licences 1,02,498 54,323.9
35 Gual Tech Licences 37,154 19,691.6
Spectrum Held in Excess 36,993 50,310.5
of 6.2MHZ
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Raja, Behura and Chandolia were arrested on Feb 2nd
2011
m ÷
1.S.Behura
Former telecom secretary who served in
the G£T at the time of the 2G allocation.
2.Pradip Baijal A bureaucrat who is alleged to have
implemented policies that favored
certain Telecom companies when he was
heading the TRAI.
m ÷
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Private secretary of Raja during UPA-I when the
licences were awarded.
He was an Indian Economic Service officer of the 1984
batch cadre.
When Raja became the Telecom Minister once again
in UPA-II, Chandolia had been promoted to the Joint
Secretary rank.
V & - sold 60% of its company stake at huge
profit to Telenor after buying licensing
V ÷
-sold 45% of its company stake at huge
profit to Emirates Telecommunications Corporation after
buying licensing.
V
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1.Nira Radia A former airline entrepreneur turned corporate
lobbyist whose conversations with politicians &
corporate entities were recorded by govt
authorities & leaked .
2.Barkha Gutta An NGTV journalist alleged to have lobbied for
A. Raja's appointment as minister.
3.Vir Sangavi A Hindustan Times editor alleged to have
edited articles to reduce blame in the Nira
Radia tapes.
&
÷ ÷ Activist lawyer and politician
' & & A journalist who was one among the very first
to write on the irregularities in the awarding
of 2G spectrum allocation by the Telecom
Ministry
& u& & £n behalf of ǮThe Centre for Public Interest
Litigationǯ.
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J is a i t t i q ir i t artic lar att r ic is i rta t f r t ati tis f r
ti is a t y s a it is s rt ra r yt t r s .
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T r l is si l -
T L k Sa a rs ar l c ar t Rajya Sa a.
JPC was instituted to in uire into the
1.Bofors contract
2.Harshad Mehta scandal.
3.Stock Market Scam.
4. Pesticide residues in soft drinks
1.It can collect oral or written evidence from the experts.
2.The proceedings of parliamentary committees are confidential.
3.Normally ministers are not called to give evidence.
4.It can inspect all documents related with the in uiry.
5.It can send summons to people to appear before them, if person does
not obey summons it is considered as contempt of House.
6.The Speaker has the final word on any dispute over calling for evidence
Why is the opposition demanding a
JPC probe into the 2G spectrum
scam?
Why is the Congress using all its
firepower to resist a JPC probe?
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V CAs create strong governance through
supervision.
V CAs discourages managers from falsifying
financial statements and at the same time,
checking on the internal control system,
V Scrutinize the efficiency of management viz;
through Forensic auditing, CAR£ reporting
etc.
V Wikipedia
V The Times of india
V Maharasthra times
V Article on 2G Spectrum by Research institute
for holistic studies, Pune
V Blog of J. Gopalkrishnan
üu & &
