CONTENTS

About 2G. What is 2G spectrum scam? Who are Involved? Market Response. Steps Taken by Govt. Conclusion & Your Thoughts.

WHAT IS 2G?
2G means: Second-Generation Wireless Telephone Technology 2G is relatively new technology in the field of mobile. 2G comes with some more benefits.
1. SMS facility was first started with network. 2. Safe for the use, means security level was high. 3. Environmental conditions was very good for this network & no network shortage was there.

HISTORY OF 2G
2G spectrum technology was first launched in 1991 in Finland only in the GSM mobile phones but the latest technology in present world is 4G, 5G.

WHAT DO YOU MEAN BY 2G SCAM?

The 2G spectrum scam involved officials and ministers in the Government of India illegally undercharging mobile telephony companies for frequency allocation licenses, which they would use to create 2G subscriptions for cell phones. According to a report submitted by the Comptroller and Auditor General based on money collected from 3G licenses, the loss to the exchequer was

176,379 crore. 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 and the Supreme Court of India took Subramaniam Swamy's complaints on record.

Who is this Person?

One of the main person behind the Indias Largest Corporate Fraud.

Raja (Born May 10, 1963, Perambalur, Tamil Nadu, India. In 1996 he first served as minister of state from 1999 to 2003. In 2004, he became a cabinet minister in the UPA government. In 2007, he became cabinet minister for communication and information technology until being tainted in the 2G spectrum scam and resigning in 2010.

WHAT ARE THE CHARGES ON FORMER TELECOM MINISTER 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 4million 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 Law Ministry, Finance Ministry.

 All nine companies paid only Rs.10,772 crore for 2G licences.

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.

SHORTFALL OF MONEY

Raja arranged the sale of the 2G spectrum licenses below their market value. Swan Telecom, a new company with few assets, bought a license for 1,537 crore . [15] Shortly thereafter, the board sold 45% of the company to Etisalat for 4,200 crore.

Similarly, a company formerly invested in real estate and not telecom, the Unitech Group, purchased a license for 1,661 crore and the company board soon after sold a 60% stake in their wireless division for 6,200 crore to Telenor

STEPS TAKEN BY GOVERNMENT AFTER SCAM

Government of India take some important steps looking forward in this Scan: Set up a special branch of CBI to look into the matter. Telecom Minister resigns his post after Scan. A Raja also arrested by the Police. CBI is also interacting with some business men.

RESPONSE TO SCAN
In mid November the Vinod Rai issued show-cause notices to all of the 85 licenses granted to these companies did not have the up-front capital required at the time of the application and were in other ways illegal.

RESPONSE TO SCAN
The Govt of India has replaced the then incumbent Telecom minister ,A Raja with Kapil Sibal who has taken up this charge in addition to being the Union minister for Human Resources Development. The CBI conducted raids on Raja and four other telecom officials on 8 December 2010. Raja, Behura and Chandolia were arrested on Feb 2nd 2011.

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

CORRUPTED ADMINISTRATION OF INDIA

If we talk about the Administration of India we all must say it is not a well maintained or a well centralized Administration as comparison to other Asian countries. 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.

THANK YOU