Essay on 2G Spectrum Scam
B Rajashekar Reddy (1593206)
MADS 6604 Ethics and Public Values
Prof Brenda Lyshaug, Ph.D.
Fairleigh Dickinson University
April 01, 2013
“2G” stands for “Second-generation wireless telephone technology”. The 2G scam is one of the biggest scam till now in India and the highest authority of India Supreme Court stated that this scam is mother of all the scam till now in India. In this 2G spectrum scam many government officials are involved for illegally undercharging frequency allocation for the mobile telephonic companies. The difference between the money collected and the money to be obtained is 1, 76,379 crore rupees (USD 39 billion). The issuing of licenses to the mobile companies occurred in 2008, but it first came to notice when the income tax department investigating one of the political person NiraRadia. CBI and CAG are the two investigation agencies involved in the investigation of the 2g scam. CAG is a file based government auditing agency. It focuses on reporting the issues when there is a deviation from the set policies and procedures and also how it is effected the economy growth. CAG has clearly mentioned that the allotment of licenses was not held in realistic price. That has caused a loss of revenue up to Rs. 176 lakhs crore to the government of India. The report also stated that telecom minister A. Raja has totally ignored the advice of finance ministries on allocation of license to benefit for few operators. It also that all the telecom regulator acts are ignored to misused. CAG also reported that the price at the license was allocated in 2008 are according to the prices in 2001. The price is very low when compared to the technology and other development from the year 2008 to 2001 which has resulted in loss to the government. The auction methods followed and the bids to invite the participants to sell the license are not carried out according to proper rules. CAG also stated that telecom ministry has crossed all the financial procedures, policies and rules according to his needs. Raja has issued licenses to the candidates who are ineligible and to the candidates submitted the false documents. From 122 licenses 85 are illegally assigned and they are not to the mark or rules needed by the telecom regulations act. Government has also formed a special central bureau of investigation team to investigate the case. The charge sheet filled by the CBI has stated that the loss was 309845.5 million (US$ 5.7 billion) on 2nd April 2011. As per joint report of Income Tax Department and Central Bureau of Investigation agencies. It has stated that A. Raja could have received an amount of 30 billion rupees (US$ 550 million) as a bribe from the companies for bringing the cut-off date forward for the applicants of spectrum. The actual date of submission is 1st October 2007 then later it is shifted to 25th September 2007 this shift in the deadline has eliminated many applications and it went favor of some of the applicants. His auction is not done according to the market valuation and instead he adopted the rate of 2001, when the telecom sector was in perfect boom. Actions to prevent such scams
All the proceeding done by the parliamentary committees should be made clear to the public and media, so that everyone can clearly understand the issue. The government needs to take severe and serious actions in such issue that can restrict others to involve in such scam. Government has to prove itself by taking all the actions on the accused independent of their position and personality. Media has to perform its duty by letting out the truth to the public in such issues. Fast track courts are to be established by government to create transparence in the justice in such scams. On May 2007, A. Raja has been appointed as a telecom minister and in august 2007 department of telecommunications DOT has initiated a process of allocation for 2G spectrum. On 25th of September 2007 telecom ministry issues press...
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