Presented by Dilna Saseendran Kavyaarasi Shyne Raju.

What is 2G?

Originated in Europe Commercially launched by Finland in 1991 Used in more than 200 countries in the world today Benefits of digital 2g technology: Digital signals require very little battery power Reduce noise, improves clarity of voice in calls Improved privacy Digital data services: SMS and email technology

Comparing 2G and 3G
2G (second generation)

-- Launched in finland:1991 -- Medium security -- No additional features

3G(third generation) -- Launched in japan:2001 -- High security -- More additional features (mob TV, video transfers, GPS)

What is 2G scam?

2G licenses issued to private telecom players at throwaway prices in 2008

CAG(Controller and Auditor General of India) Spectrum scam is the biggest scam in India has cost the government Rs. 1.76 lakh crore

CAG: Rules and procedures flouted while issuing licenses

Persons involved
- A Raja (Telecom Minister) - Kanimozhi karunanidhi (Member of Rajya Sabah) - Siddhartha behura(former secretary of DoT in UP) - Ratan Tata - PJ Thomas(former secretary of DoT in Kerala) Pradip baijlal (civil servant)

Arun Jaitley Arun Shourie Pramod Mahajan

WHAT ARE THE CHARGES ON FORMER TELECOM MINISTER A 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 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

Corporations involved

Unitech Group

Swan Telecom
Loop Mobile Videocon Telecommunications Limited S Tel Reliance Communications Sistema Shyam Mobile (MTS) Sistema Mobile Russia Vodafone Essar Dishnet Wireless Allianz Infra

Corporate Personalities involved

Anil Ambani - Reliance Group (ADAG)

Shahid Balwa - DB Realty and DB Etisalat (Swan Telecom)

Vinod Goenka - Dynamix Group Venugopal Dhoot - Videocon Group

Prashant Ruia - Essar Group

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

Media personalities involved

Nira Radia, a former airline entrepreneur turned corporate lobbyist whose conversations with politicians and corporate entities were recorded by the government authorities and leaked creating the Nira Radia tapes controversy Barkha Dutt, an NDTV journalist alleged to have lobbied for A. Raja's appointment as minister. Vir Sanghvi, a Hindustan Times editor alleged to have edited articles to reduce blame in the Nira Radia tapes.

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

Steps taken by government for 2G scam

Government of India take some important steps looking forward in this Scam:

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

Telecom Minister resigns his post after Scam.

A Raja also arrested by the Police. CBI is also interacting with the brothers of A Raja and also some business men.

Reports

Telecom secretary Dinesh Kumar Mathur has told the CBI that despite being the top most officer in the DoT he was completely unaware of two controversial letters Raja wrote to Manmohan Singh endorsing his 2G allocation policy.

Indian penal code

All the accused have been booked under sections

-120(B) -468 -471

(criminal conspiracy),

(Forgery for purpose of cheating), electronic

(using as genuine a forged document or record),

-420

(cheating and dishonestly inducing delivery of property)

- 109 (abetment if the act abetted is committed in consequence, and where no express provision is made for its punishment)

Impact on stock market

The first casualty in Stock Markets once Raja was arrested was DB Realty.

DB Realty had given 200+ crores to Kalaignar TV (owned by Karunanidhi's 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.

Swan Telecom Chief Balwa was arrested on Feb 8 and this led to rumors of links with Anil Ambani's Reliance ADAG and it led to 20% fall of his stocks.
Spice jet stocks went down after reports of investigation on Maran's recent takeover of Spice jet.

India in worlds eye

According to Alok Shende, principal analyst and founder director of Ascentius Consulting. "Foreign investors may actually perceive the role of courts and rule of law, the role and independence of the CAG and the will of the Vermont to unearth this scam as a positive attempt to spring-clean all that was wrong

Wharton's Singh feels foreign investors may view corruption in India "as the cost of doing business."

Corrupted administration of India

Poor Administration of India is just because of the poor political leaders of our country. They used to 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 affected badly there are lots of other factors which makes it worse.