Prepared by the TERRIFIC TEN
GMCS 3rd Feb 2011 Batch. Sr.No. Particulars 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 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. 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 Subramaniam Swamy's complaints on record. Comptroller and auditor General of India Central Bureau of Investigation
Central Vigilance Commission Directorate of Enforcement 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 ShyamTelecom in October 2007 at a rate fixed in 2001.
On September 24, 2007 DoT issues a press release inviting applications for issue of spectrum. Objections from the Telecom Secretary, D S Mathur and Member of DoT Manju Madhvan on the point of Transparent auctioning and Competitive bidding.
Law Minister HR Bhardwaj rejects Rajaǯs plan. Directs 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 DoT (Jan 10, 2008) at 2:45pm The press release asked the new players to remit fee (huge money ranging from Rs.1500 cr- Rs.1600 cr) between 3:30pm -4:30pm on same day. On Sept 13, 2008, Raja forces BSNL CMD Kuldip Goyal to enter into a un- precedented MoU with Swan
Offloading of Shares: 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). Delhi HCǯs PIL hearing against FCFS policy.
STel files case against DoT in the Delhi HC against the reversal of cut-off dates.
CBI & ED 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. Category Loss as per CAG based Loss based on Traiǯs on 3G auction(Rs.in new2G/3G Value(Rs. In Crore) crore)
122 New licences 1,02,498 54,323.9 35 DualTech Licences 37,154 19,691.6
Spectrum Held in Excess 36,993 50,310.5 of 6.2MHZ Total Loss 1,76,645 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. Unitech Group - sold 60% of its company stake at huge profit to Telenor after buying licensing Swan Telecom -sold 45% of its company stake at huge profit to Emirates Telecommunications Corporation after buying licensing. Loop Mobile Videocon Telecommunications Limited S Tel Reliance Communications Sistema Shyam Mobile (MTS) Ȃ Sistema Mobile Russia Tata Communications Vodafone Essar Dishnet Wireless Allianz Infra Name Allegation 1.Nira Radia 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 About him 1. Subramaniam Swamy Activist lawyer and politician
2. Paranjoy GuhaThakurta 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
3. Prashant Bhushan On behalf of ǮThe Centre for Public Interest Litigationǯ. 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. What is JPC?
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 r a r y t t r s .
. ow an ersons can e e ers of JPC?
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? A raja could have got bribes to the tune of 3000 crs as per CBI & Enforcement Direcotrate. Arrest of Shahid Balwa by theCBI. Shourie to appear before CBI on Feb 21. The new licencees got huge foreign investments. One of them brought in share capital worth S$625 million. The licencees attracted investments in US, Japanese, and Mauritian currency. CBI accused Public sector Bank including SBI of stepping out of internal rules to advance Rs.11000crore on the basis of irregularly alloted 2g spectrum. Govt may agree on JPC.
CAs create strong governance through supervision. CAs discourages managers from falsifying financial statements and at the same time, checking on the internal control system, Scrutinize the efficiency of management viz; through Forensic auditing, CARO reporting etc. Wikipedia The Times of india Maharasthra times Article on 2G Spectrum by Research institute for holistic studies, Pune Blog of J. Gopalkrishnan ǮBe the change you want to seeǯ