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    2g Scam

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    Kiran Rokade
    The document summarizes the key aspects of the 2G spectrum scam in India. It describes how telecom licenses were issued in 2008 at 2001 prices, violating procedures. This resulted in losses of Rs. 1.76 lakh crores to the government according to the CAG report. Companies were given licenses without proper eligibility and later sold stakes at large profits. The allocation process lacked transparency and ignored regulatory recommendations.

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    2g Scam

    Uploaded by

    Kiran Rokade
    2K views9 pages
    The document summarizes the key aspects of the 2G spectrum scam in India. It describes how telecom licenses were issued in 2008 at 2001 prices, violating procedures. This resulted in losses of Rs. 1.76 lakh crores to the government according to the CAG report. Companies were given licenses without proper eligibility and later sold stakes at large profits. The allocation process lacked transparency and ignored regulatory recommendations.

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    The document summarizes the key aspects of the 2G spectrum scam in India. It describes how telecom licenses were issued in 2008 at 2001 prices, violating procedures. This resulted in losses of Rs. 1.76 lakh crores to the government according to the CAG report. Companies were given licenses without proper eligibility and later sold stakes at large profits. The allocation process lacked transparency and ignored regulatory recommendations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    2K views9 pages

    2g Scam

    Uploaded by

    Kiran Rokade
    The document summarizes the key aspects of the 2G spectrum scam in India. It describes how telecom licenses were issued in 2008 at 2001 prices, violating procedures. This resulted in losses of Rs. 1.76 lakh crores to the government according to the CAG report. Companies were given licenses without proper eligibility and later sold stakes at large profits. The allocation process lacked transparency and ignored regulatory recommendations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 9

    Presented By : Kunal Chhabra

    Latakshi Masrani
    Tushar Agrawal
    Three primary benefits of 2G networks over their
    predecessors were :
     Phone conversations were digitally encrypted;
     2G systems were significantly more efficient on
    the spectrum allowing for far greater mobile
    phone penetration levels;
     2G introduced data services for mobile, starting
    with SMS text messages.
     The 2G spectrum scam involved officials in the
    government of India illegally undercharging mobile
    telephony companies for frequency
    allocation licenses.
     The issuing of licenses occurred in 2008, but the
    scam came to public notice when the Indian Income
    Tax Department was investigating political
    lobbyist Nira Radia.
     The discussion around the reactions to the 2G
    spectrum scam became known in the media as
    the Nira Radia tapes controversy.
     
     2G licenses issued to private telecom players at
    throwaway prices in 2008
     CAG: Spectrum scam has cost the
    government Rs. 1.76 lacs crores
     CAG: Rules and procedures flouted while issuing
    licenses
    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 from 4 million 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
    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 for Rs. 1537 crore, sold 45% stake to
    Etisalat for Rs. 4200 crore
     Unitech Wireless got license for Rs. 1661 crore, sold 60%
    stake for Rs. 6200 crore
     All nine companies paid DoT only Rs. 10,772 crore for 2G
    licences
     The CAG highlighted that the entire process of allocation of Unified
    Access Service licences "lacked transparency" and was undertaken in an
    "arbitrary, unfair and inequitable manner," in the process "flouting every
    canon of financial propriety, rules and procedures.“

     The 77-page report of the CAG tabled in Parliament said due diligence
    was not followed and even the recommendations of the telecom
    regulator TRAI were "not followed in spirit".

     The report said the "presumptive" loss caused to the exchequer through
    spectrum allocation to 122 licencees and 35 dual technology licences in
    2007-08 was Rs 1,76,645 crore. It pegged the figures on the basis of 3G
    auction held earlier this year in which the government mopped up over
    Rs 67,000 crore (Rs 670 billion).

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