Better 2G Scam Ppt

8/3/2019 Better 2G Scam Ppt

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2g Spectrum Scam

Presented By:

Sonia GoyalAbhishek Mishra

Rohit Kapoor

P.Gopi Kishor


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CONTENTS

About 2G.

What is 2G spectrum scam?

Who are Involved?

Media Response.

Market Response.

Steps Taken by Govt.

Political Response to Scam.

Conclusion


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2G means: Second-Generation WirelessTelephone Technology

2G is relatively new technology in the field of mobile.

2G is short for second-generation wireless telephonetechnology.

It was commercially launched on the GSM standard inFinland in 1991.

.


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HISTORY OF 2G

y 2G spectrum technology was first launched in1991 in Finland only in the GSM mobile phonesbut this is not the latest technology that weare using. As 2G was launched in 1991 so manyother technologies overcome it with 2.5G,2.75G technologies but the latest technology inpresent world is 3G.


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INDIAIN THE WORLD'S EYES

Wharton's Singh feels foreign investors may view corruption inIndia "as the cost of doing business." But the country would attractmore foreign investments and business interest if it had a strongerreputation for being non-corrupt, he says. Investors are attracted

to India because "there are not too many other options that areparticularly attractive ... but this can change rather quickly,

The 2G SCAMdal is unlikely to hurt India's investment appeal

globally, according to Alok Shende, principal analyst and founderdirector of Ascentius Consulting. "Foreign investors may actuallyperceive the role of courts and rule of law, the role andindependence of the CAG and the will of the vernment to unearththis scam as a positive attempt to spring-clean all that waswrong,"


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The 2G spectrum SCAM involved officials and ministers in theGovernment of India illegally undercharging mobile telephonycompanies for frequency allocation licenses, which they woulduse to create 2G subscriptions for cell phones. According to a

report submitted by the Comptroller and Auditor General based onmoney collected from 3G licenses, the loss to the exchequer was

176,379 crore (US$38.27 billion). The issuing of the 2G licensesoccurred in 2008, but the scam came to public notice when the

Indian Income Tax Department investigated political lobbyist NiiraRadia and the Supreme Court of India took SubramaniamSwamy's complaints on record [With Case type:Writ Petition(Civil),Case No:10, Year:2011]. The case details of the main PILfiled with the supreme court is Type:Writ Petition (Civil),CaseNo:423, Year:2010.

WHAT DO YOU MEAN BY 2G SCAM?


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A. Raja (Born May 10, 1963, Perambalur, Tamil Nadu, India) is an

Indian politician from the Dravida Munnetra Kazhagam(DMK) political

party. He is a member of the 15th Lok Sabha representing the Nilgiris

constituency ofTamil Nadu. Raja was first elected to the Lok Sabha in

1996 and first served as minister of state from 1999 to 2003. On being

re-elected to the Lok Sabha in 2004, he became a cabinet ministerinthe UPA government. In 2007, he became cabinet minister for

communication and information technology. On being re-elected in

2009 he was again appointed cabinet minister for communication and

information technology until being tainted in the 2G spectrum scam

and resigning in 2010.

Who is this Person?

One of the main person behind the

Indias Largest Corporate Fraud.


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WHATARE THE CHARGES ON FORMER

TELECOM MINISTERA RAJA?

CHEAP TELECOM LICENSES

Entry fee for spectrum licenses in 2008 pegged at 2001 prices

Mobile subscriber base had shot up to 350 million in 2008 from4million in 2001.

NO PROCEDURES FOLLOWED

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.


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Unitech, Swan Telecom got licenses without any prior telecomexperience .

Swan Telecom given license even though it did not meet

eligibility criteria.

Swan got license for Rs.1537 crore, sold 45% stake to Etisalatfor Rs.4200 crore.

Unitech Wireless got license for Rs. 1661 crore, sold 60% stakefor Rs. 6200 crore.

All nine companies paid DOT only Rs.10,772 crore for 2Glicences.

FAVOURITISM


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CORPORATE PERSONALITIES INVOLVED

Anil Ambani - Reliance Group (ADAG)Shahid Balwa - DB Realty and DB Etisalat (Swan Telecom)Vinod Goenka - Dynamix Group

Venugopal Dhoot - Videocon GroupPrashant Ruia - Essar Group

All of them have either been question by the CBI or are

prospective suspects in the scam.


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Nira Radia, a former airline entrepreneur turnedcorporate lobbyist whose conversations withpoliticians and corporate entities were recorded bythe government authorities and leaked creating

the

Nira Radia tapes controversy.

EDIA PERSONS AND LOBBYISTS INVOLVED

Barkha Dutt, an NDTVjournalist alleged to havelobbied for A.Raja's appointment as minister.

Vir Sanghvi, a Hindustan Times editor allegedto have edited articles to reduce blame in the NiraRadia tapes.


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A. Raja arranged the sale of the 2G spectrum licenses below theirmarket value. Swan Telecom, a new company with few assets,bought a license for 1,537 crore (US$333.53 million). [15] Shortly

thereafter, the board sold 45% of the company to Etisalat for4,200 crore (US$911.4 million).

Similarly, a company formerly invested in real estate and not

telecom, the Unitech Group, purchased a license for 1,661 crore(US$360.44 million) and the company board soon after sold a60% stake in their wireless division for 6,200 crore (US$1.35billion) to Telenor

SHORTFALL OF MONEY


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RELATIONSHIP BETWEEN MEDIA

&

GOVERNMENT

Media sources such as OPEN and Outlook reported thatBarkha Dutt and Vir Sanghvi knew that corporate lobbyist

Nira Radia was influencing the decisions of A. Raja. The

critics alleged that Dutt and Sanghvi knew about corruption

between the government and the media industry, supported

this corrupt activity, and suppressed news reporting the

discovery of the corruption.


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y Nira Radiay

M.KarunanidhiyA Raja (Telecom minister)yArun Jaitleyy Barkha dutt (Journalist)y

Arun Shouriey Pramod Mahajan

PERSONS INVOLVED IN 2G

SPECTRUM SCAM

A.RAJA NIRARADIA

BARKHADUTT


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Comptroller and auditorGeneral of India

Central Bureau ofInvestigation

Central Vigilance

Commission

Directorate of Enforcement


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STEPS TAKEN BY GOVERNMENT

AFTER SCAM

y Set up a special branch of CBI to look into the matter.

y Telecom Minister resigns his post after SCAM.

y A Raja also arrested by the Police.y CBI is also interacting with the brothers of A Raja and

also some business men.

Government of India take some important steps looking

forward in this SCAM:


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RESPONSE TO SCAMy In earlyNovember 2010Jayalalithaa accused the Tamil Nadu

state chief ministerM Karunanidhi of protecting A.Rajafrom corruption charges and called for A. Raja's resignation.

By midN

ovemberA.Raja resigned.

y In mid November the comptroller Vinod Rai issued show-cause notices to Unitech, S Tel, Loop Mobile, Datacom(Videocon), and Etisalat to respond to his assertion that allof the 85 licenses granted to these companies did not havethe up-front capital required at the time of the applicationand were in other ways illegal.


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y In response to the various allegations , the Govt of

India has replaced the then incumbent Telecomminister ,A Raja with Kapil Sibal who has taken upthis charge in addition to being the Union minister forHuman Resources Development.Mr Sibal contendsthat the "notional" losses quoted are a result of

erroneous calculations and insists that the actuallosses are nil.

RESPONSE TO SCAM


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