2G Spectrum Scam

The 2G spectrum scam involved allegations of:

1. underpricing of 2G spectrum Telecom Ministry of India, resulting in loss to the exchequer and

2. illegal manipulation of the spectrum allocation process to favour a few select companies

According to a report submitted by the Comptroller and Auditor General(CAG) based on money collected from 3G licenses, the loss to the exchequer due to underpricing of 2G spectrum was 176,379 crore (US$39.16 billion).

The issuing of the 2G licenses occurred in 2008, but the scam came to public notice when the Supreme Court of India took Subramaniam Swamy's complaints on record.

CHARGES ON FORMER TELECOM MINISTER A RAJA?

CHEAP TELECOM LICENSES

1. Entry fee for spectrum licenses in 2008 pegged at 2001 prices

2. Mobile subscriber base had shot up to 350 million in 2008 from 4 million in 2001

NO PROCEDURES FOLLOWED

1. Rules changed after the game had begun

2. Cut-off date for applications advanced by a week

3. Licenses issued on a first-come-first-served basis

4. No proper auction process followed, no bids invited

5.Raja ignored advice of TRAI, Law Ministry, Finance Ministry

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

NIIRA RADIA TAPES CONTROVERSY:

The Radia tapes controversy relates to the taped and released telephonic conversations between Nira (also Niira) Radia, a British professional lobbyist and politicians, corporates and industrialists, officials, bureaucrats, aides and journalists that were taped by the Indian Income Tax Department in 2008–09.

The tapes led to government and public accusation that these calls evidence the planning of the 2G spectrum scam and other criminal and unconstitutional activities. Nira Radia runs a public relations firm named Vaishnavi Corporate Communications, and also operates through subsidiaries such as Neucom, Noesis Strategic Consulting Services and Vitcom Consulting, whose clients, among others, include Ratan Tata's Tata Group, Mukesh Ambani’s Reliance Industries and Prannoy Roy's NDTV