The 2G Spectrum story

What is 2G?
2G means: Second-Generation Wireless Telephone Technology 2G is relatively new technology in the field of mobile.

2G spectrum was the revolutionary technology in their time, it comes with some more benefits.
SMS facility was first started with network. Safe for the use, means security level was high. 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 this is not the latest technology that we are using.

What is scam?
2G licenses issued to private telecom players at throwaway

prices in 2008
Spectrum scam has cost the government Rs. 1.76 lakh

crore or USD 39 billion.

CAG: Rules and procedures flouted while issuing licenses. Person accused is the Telecom minister : A. Raja The issuing of licenses occurred in 2001, but the scam

came to public notice in 2008.

Who is the Person?

Andhimuthu Raja is an Indian politician from the Dravida

Munnetra Kazhagam (DMK) political party.

Raja was first elected to the Lok Sabha in 1996 and first

served as minister of state from 1999 to 2003.

On being re-elected in 2009 he was again appointed cabinet

minister for communication and information technology until being tainted in the 2G spectrum scam and resigning in 2010.

What are the charges?

NO PROCEDURES FOLLOWED 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

Beneficiary
Department of Telecommunications (DoT) circumvented

the rules to help Swan Telecom, which effectively acted as a front for Reliance Telecommunications.
Big beneficiary of the 2G spectrum allocation was Unitech

Wireless, which had no experience in the telecommunication sector.

How the 2G spectrum scam came into public notice

The issuing of the 2G licenses occurred in 2001, but the

scam came to public notice when the Indian Income Tax Department investigated political lobbyist Nira Radia .
The Supreme Court of India took Subramaniam Swamy's

complaints on record [With Case type: Writ Petition (Civil),Case No:10, Year:2011].

Parties Involved with the 2G Case

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 Wirless Allianz Infra

Media persons and lobbyists involved

Nira Radia Barkha dutt (Journalist) Vir Sanghvi

Politicians involved
Mr. A. Raja- Minister of Communication and Telecom Kanimozhi, daughter of M Karunanidhi, and Member of

Parliament who actively participated in the allocation of Spectrums. Karunanidhi too was involved in this scam.

Bureaucrats involved
Siddhartha Behura Pradip Baijal R K Chandolia

Petitioners in 2G scam
political activist, lawyer, Dr Subramanyam Swami Poranjay Guha Thakurta, a journalist Prashant Bhushan, on behalf of the Centre for Public

Interest Litigation
Others: Several eminent people like former chief election

commissioners J.M. Lyngdoh, T.S. Krishnamurthy

Impact of 2G
The scam has badly bruised the image of Indian

telecom and the government in international investor circles.

the entire industry is pulled down on the stock

markets and firms go down with the slump.

References
^ a b "Subramanian Swamy moves SC for cancellation of 2G spectrum licences". The TImes of

India. 2010-05-19. http://articles.timesofindia.indiatimes.com/2011-01-04/india/28374908_1_2gspectrum-licences-cut-off-date. Retrieved 2011-05-06. ^ "3G spectrum auction: Government collects Rs67,719 crore booty". DNA. 2010-05-19.. ^ "Case Number". Courtnic.nic.in. ^ a b "Accused have been booked under sections". The Hindustan Times. 2011-04-25 ^ "CBI conducts raids; swoops on DMK associates, Niira Radia & Pradip Baijal". economictimes.indiatimes.com. ^ a b "Government, 11 telecom firms get court notice on 2G spectrum". sify.com. ^ "Dayanidhi Maran: 2g Scam". timesofindia.indiatimes.com. ^ "2G scam: Chidambaram as guilty as Raja, claims Subramanian Swamy". indiatoday.intoday.in. ^ "Subramanian Swamy gives apex court proof on Chidambaram's role". timesofindia.indiatimes.com. Business.rediff.com. http://business.rediff.com/slide-show/2010/sep/16/slide-show-1-why-i-fileda-pil-against-the-telecom-minister.htm. Retrieved 2011-02-11. ^ "Performance Audit Report on the Issue of Licenses and Allocation of 2G Spectrum by the Department of Telecommunications, Chapter 5". Comptroller and Auditor General of India. http://saiindia.gov.in/cag/sites/default/files/2010-11_19_PA-civil/chap5.pdf

Thank you