Report on 2g Spectrum

Topics: Lobbying, Telenor, Mobile phone companies of India Pages: 5 (1232 words) Published: January 4, 2011
This is the biggest scam till now in India.The Supreme Court said that this 2G Scam is the mother of all the Scams. The 2G spectrum scam involved officials in the government of India illegally undercharging mobile telephony companies for frequency allocation licenses, which they would use to create 2G subscriptions for cell phones. The shortfall between the money collected and the money which the law mandated to be collected is 1,76,379crore rupees or USD 39 billion. The issuing of licenses occurred in 2008, but the scam came to public notice when the Indian Income Tax Department was investigating political lobbyist NiraRadia.

The government's investigation and the government's reactions to the findings in the investigation were the subject of debate, as were the nature of the Indian media's reactions. The discussion around the reactions to the 2G spectrum scam became known in the media as the NiraRadia tapes controversy.

A Raja ,the Ex-Minister of Communications andInformation Technology , is an Indian politician from the DMK, who sold the licences and played a key role in 2G Scam and also who knows full details regarding 2G Scam. Generally , Tele Communication companies have to take licence from Government by paying large amounts for their operations and also Government have many rules to give permission for new companies in Tele Communication.So,due to Raja , many companies got the licences very cheaply and also many new companies started their services with out eligibilitycriteria,which is illegal.

Following is the information given by Comptroller and Auditor General(CAG):

* On nov 11th,The Comptroller and Auditor General(CAG) announced that revenue loss for India due to Raja at Rs.1.8L Cr.

CAG indicts Raja:
* CAG says Raja caused Rs.177,000crore loss to India.
* Licences issued in 2008,pegged at 2001 prices.
* Raja’s ministry sold spectrum to 9 companies in 2008 using faulty & outdated policy,causing Rs.140,000 crore loss. * Doled out additional airwaves to existing telecos beyond what they were entitled to,causing an additional loss of nearly Rs.37,000 crore to exchequer. * Raja gave dual licence permits to RCOM & Tata tele in 2008 using old policy , causing a loss of up to Rs.37,000 cr. * Raja ignored advice of Telecom RegulatoryTRAI , Finance Ministry & Law Ministry on pricing airwaves at realistic & market-driven rates. * He ignored Prime Minister’s advice also to favouring some corporates,Raja flouted all norms. * Raja dished out pan-India airwaves for Rs.1651 Crore despiteS tel offering Rs.13,752crore& even willing to inhance this offer if the government were to receive a higher bid. * Six of the nine companies that were given licences did not fulfill the eligibility criteria , but communications ministry (Raja)did not reject their applications.

* The Six companies are:
3.Unitech(which coded majority control to Norway Telenor)
5.Loop Mobile
6.S Tel
Criteria for working out potential loss
Rates offered On the basis of
Categoryby S Tel 3G auction

New Licences Rs.657525cr Rs.102497cr Dual Technology Rs.24591cr Rs.37153cr Beyond contracted
Quantity of 6.2MHZ Rs.36729cr

Total Rs.90316cr Rs.176379cr

WEB Of Allegations:
* CAG says telecom ministry had flouted every canon of financial propriety,rules and procedures. * Raja issued licences to ineligible applicants:85 of 122 licences issued in 2008 were illegal as these cos had disclosed incomplete information , submitted fictitious documents and used fraudulent means to get permits. * Allianz Infratech ,Datacom(Videocon), Unitech(Telenor), S Tel, Loop Mobile and...
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