2G SPECTRUM SCAM

What is 2G ???

2G means second-generation wireless telephone

technology.

Second generation 2G cellular telecom networks were

commercially launched on the GSM standard in Finland in
1991.
2G introduced data services for mobile, starting with SMS
text messages.
2G was launched in 1991 so many other technologies
overcome it with 2.5G, 2.75G technologies but the latest
technology in present world is 3G.

WHAT IS 2G SCAM???
2G licenses issued to private telecom players at
throwaway prices in 2008.Spectrum scam has cost
loss to the government Rs. 1.76 Lakh crore. Rules
and procedures flouted while issuing licenses.

HOW DID IT START???

On November, 2008, Subramanian Swamy wrote to
Prime Minister Manmohan Singh and followed it up
with four more letters seeking sanction to prosecute A.
Raja in regards to 2G telecom spectrum political
corruption scam.When the Prime Minister Manmohan
Singh didn't take any decision Swamy went to
Supreme Court. On 27 November 2010 Subramanian
Swamy announced that he will file a criminal case
against former union minister A. Raja in the 2G
Spectrum Scam before the Special Court for Corruption
Cases in connection with the charges of irregularities in
2G spectrum allocation

WHO CAUSED IT???

The telecom minister Andimuthu Raja caused
the 2G scam.
Raja caused the loss of $40 billion to the
Government by selling the Licenses of
network to the private players without
following any rules and regulations.

ALLEGATIONS CHEAP TELECOM

LICENCES
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

FAVOURITISM, CORPORATES
ENCASH PREMIUM
Unitech, Swan Telecom got licenses without any prior
telecom experience
Swan Telecom given license even though it did not
meet eligibility criteria Swan got license forRs.1537
crore , sold 45% stake to Etisalat for Rs.4200 crore
Unitech Wireless got license for Rs.1661 crore, sold
60% stake for Rs.6 200 crore All nine companies paid
Dot only Rs.10,772 crore for 2G licenses

PEOPLE INVOLVED
Kanimozhi who
was named as
co-conspirator
with A Raja

Shahid Balwa the

promoter of the
swan telecom
who according to
CBI had central
role in this scam

Unitech chief
Sanjay Chandra
who was
involved for
cheating

Three top senior

executives of
ADAG : Mr
Gautam Doshi ,
Mr Hari Nair , Mr
Surendra Pipri

MEDIA PERSON INVOLVED

Neera Radia, a former airline entrepreneur turned
corporate lobbyist whose conversations with politicians
and corporate entities were recorded by the government
authorities. The contents were later leaked by unknown
parties creating the Nira Radia tapes controversy

Barkha Dutt, a journalist who works with NDTV also was

involved in the lobbying of ministers in the government,
but was not given any coverage or publicity in this matter
by her fellow colleagues
Vir Sanghvi, a Hindustan Times editor alleged to have
edited articles to reduce blame in the Nira Radia tapes

EFFECTS
The investor sentiment has been negative
and telecom stocks plunged in India.
The other side of the argument is that the
telecom sector is seeing a lot of growth
opportunities and going ahead there will be
multiple avenues for the telecom service
providers to boost their revenues.

EFFECTS
The telecom companies are now looking at data
services to enhance their market share and
voice services will eventually become a matter
of complimentary services.
The advent of 3G has also considerably lifted
investor interests in the stocks and there is a
hope that innovative business models and VAS
will be the game changers for the telecom stocks

REMEDIAL MEASURES

SUSPECT OF THE SCAM

Who is this Person?
One of the main person behind the India's Largest Corporate
Fraud. 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 of Tamil Nadu. Raja
was first elected to the Lok Sabha in1996 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 minister in the UPA
government. In 2007, he became cabinet minister for
communication and information technology. On being re-elected
in2009 he was again appointed cabinet minister for
communication and information technology until being tainted in
the 2G spectrum scam and resigning in 2010.

CORPORATE PERSONALITIES
INVOLVED
Anil Ambani - Reliance Group (ADAG)
Shahid Balwa - DB Realty and DB Etisalat (Swan Telecom)
Vinod Goenka - Dynamic Group

Venugopal Dhoot - Videocon Group

Prashant Ruia - Essar Group

All of them have either been question by the CBI or
areprospective suspects in the scam.

IMPACT ON STOCK MARKETS

The first casualty in Stock Markets once Raja was
arrested was DB Realty.DB Realty had given 200+
crores to Kalaignar TV (owned by Karunanid his Wife) .
The news led to 20% fall in the stock prices of DB
Realty.Sun TV had its shares fall by 10% on the next
day following rumors of Kalanidhi Maran having stake
in Kalaignar TV.Sun TV COO refused the allegations.
Swan Telecom Chief Balwa was arrested on Feb 8 and
this led to rumors of links with Anil Ambanis Reliance
ADAG and it led to 20% fall of his stocks. Its reported
that nearly 2 Billion USD was eroded from his stocks
.Spice jet stocks went down after reports of
investigation on Marans recent takeover of Spice jet.

CORRUPTED ADMINISTRATION OF
INDIA
If we talk about the Administration of India we
all must say it is an unorganised Administration
as compared to other Asian countries. Poor
Administration of India is just because of the
poor political leaders of our country. They do
some unofficial work for the sake of money, this
makes Administration of India weaker. This is
not the only example which makes
Administration of India affect badly ,but there
are lots of other factors which makes it worse.

CONCLUSION
As per the presentation we can say that the scam
initiated only and only because of corrupted
people involved and they should be put behind
bars. Regulatory systems should be introduced
more by the Government so as to restrict these
kind of scams.

BAD THINGS ARE FOLLOWED QUICKLY RATHER

THAN THE GOOD THINGS