Prepared by the DISHA BAVISHI Roll No : 504 Class: TYBBI Submitted to : PROF.

POONAM POPAT

2G is short for second-generation wireless telephone technology. It was commercially launched on the GSM standard in Finland in 1991.

Benefits of 2G network:

Digital Encryption. Introduction of Data Services Downloadable media content. Ringtones were downloaded and paid for. Mobile advertising was also introduced.

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. The shortfall between the money collected and the money which the law mandates to be collected is 1.76 lakh crore rupees.

On November, 2008, Subramanian Swamy wrote to Prime Minister Manmohan Singh. On 27 November 2010 Subramanian Swamy anounced that he will file a criminal case against former union minister A. Raja.

The issuing of the 2G licenses occurred in 2008. But the scam came to public notice when the Indian Income Tax Department investigated political lobbyist Niira Radia. At the same time the Supreme Court of India took Subramanian Swamy's complaints on record.

1. Cheap telecom licenses 2. No procedures followed

3. Favouritism, corporates encash premium.

Comptroller and auditor General of India

Central Bureau of Investigation

Central Vigilance Commission

Directorate of Enforcement

Category

Loss as per CAG based on 3G auction(Rs.in Crore)

Loss based on Trais new2G/3G Value(Rs. In crore)

122 New licences 35 Dual Tech Licences

Spectrum Held in Excess of 6.2MHZ Total Loss

1,02,498 37,154
36,993 1,76,645

54,323.9 19,691.6
50,310.5 1,24,326.0

Source:CAG report,Nov 2011&TRAI Report on 2G spectrum of Feb 2011

Andimuthu Raja has come a long way from being a lawyer in rural Tamil Nadu. The former Telecom and IT minister who made the 2G spectrum scam Alloted the licence which are given in 2008 at 2001 prices .

Raja, Behura and Chandolia were arrested on Feb 2nd 2011

NAME

CHARGES

1.S.Behura

Former telecom secretary who served in the DOT 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.

NAME

CHARGES

3.Chandolia

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.

Name 1.Nira Radia

Allegation

A former airline entrepreneur turned corporate lobbyist whose conversations with politicians & corporate entities were recorded by govt authorities & leaked .

2.Barkha Dutta

An NDTV 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.

Name 1. Subramaniam Swamy

About him

Activist lawyer and politician

2. Paranjoy Guha Thakurta

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 On behalf of The Centre for Public Interest Litigation.

3. Prashant Bhushan

In november 2010 Jayalalithaa accused state chief minister M Karunanidhi. In mid November the comptroller Vinod Rai issued show-cause notices to some companies involved. Some media sources have speculated that these companies will receive large fines but not have their licenses revoked. Raja, Behura and Chandolia were arrested on Feb 2nd 2011.

Online community makes fun of the Scam

Kapil Sibal replaces A Raja as the Telecom Minister in addition to being the HRD Minister. Mr Sibal contends that "notional" losses quoted are a result of erroneous calculations & insists that actual losses are nil.

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