2 g Spectrum Scandal!!!!!

8/2/2019 2 g Spectrum Scandal!!!!!

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2 G SPECTRUM SCANDAL!!!!!


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OBJECTIVES OF THE REPORT

To gain an insight into what is 2G Spectrum Scam

To know the key involved in the corruption

To study the impact of 2G scam on TRAI andIndian exchequer

To know the effects on government and theeconomy of India.


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SCOPE OF THE REPORT The report aims to find the causes and effects of

2G scamIt is shaped for the infamous 2G scam, whichoccurred in 2008

It is confined to monitor what kind of problems theGovernment is currently facingThe analysis is descriptive in natureIt examines the corruption and discrimination

involved among the politicians and media


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What is it all about???

Spectrum was given at lower prices and olderrates

Additional spectrum was given to some players

A. Raja portrayed favoritism in allotting thespectrum

New players with no experience were allowed tobid for the spectrum

2G licenses issued to private telecom players atthrowaway prices in 2008

CAG: Spectrum scam has cost the governmentRs. 1.76 lakh core

CAG: Rules and procedures flouted while issuing


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Open license regime in 2007

Cut-off date was 1st October but fake cut-off datedeclared as 25th September

Licenses were allotted to nine operators based onthe price fixed in year 2001

It lead to heavy losses to the Government


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A. Raja gave 122 new licenses in January 2008at prices fixed in 200185 of the 122 licenses allocated were illegalDepartment of Telecommunication (DoT) failed to

recover Rs. 679 crore from six operators out ofthe nine involvedDoT failed to cancel the spectrum permits of thesix companies


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BENEFICIARIES Unitech (now Uninor)

Datacom (now Videocon)Swan (now Etisalat)Shyam (now SistemaShyam)

S TelLoop Telecom

Allianz Infratech

Reliance CommunicationTata CommunicationOut of the above-mentioned companies, six of themwere given mobile permits despite not meeting theeligibility criteria.


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KEY INVOLVED

Former Telecom Minister, A. RajaLeader of Opposition , ArunJaitleyNiraRadia, a corporate activist whose

conversations with politicians and corporateentities were recorded by the government wasleaked.BarkhaDutt, an NDTV journalist alleged to have

supportedA. Raja's appointment.VirSanghvi, Hindustan Times editor alleged tohave edited articles to reduce the blame in the

NiraRadia tapes.


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IMPACT OF THE SCAM A standoff between UPA and the Opposition in the

Winter session of the Parliament causing anadditional loss of Rs.146 crore.The Exchequer suffered a loss of Rs. 60,000

crore.Principle of first come first served basis.

Parties who acquired the licenses sold theirshares with a huge profit margin.Government was left with only one-sixth of thefalsely created bid.Loss of Rs.10,000 crore to the exchequer onSwan and Unitech licenses alone.


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FACTS AND FIGURES Swan Telecom sold 45% of its stake to UAEs

Telecom operator Etisalat at $900 million.Unitech paid only 1651 crore as the license feesand later sold 60% of its stake to Norways

Telenor.The exchequer overall suffered a loss of Rs.60,000 crore.


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LIMITATIONS With regard to the involvement of bureaucrats

and media, it does not go deep into the leakageof thewell-known radio tapes.

It does not analyze the facts of the scam whichthe Government has not disclosed yet.


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CONCLUSION Adverse effect on Economy.

Slowdown in Equity Investments.Lack of transparency creating speculations.Dip in revenue by 40% in 2010.


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GROUP 1ABHIMANYUJOELJUJINPARVATHY

S.HARISHSHRUTIMOHAN

Documents

2 g Spectrum Scandal!!!!!