The document summarizes the 2G spectrum scam that occurred in India in 2008. The scam involved the Indian government issuing 2G licenses to private telecom companies at substantially lower prices than their market value, resulting in an estimated loss of 1.76 lakh crore (176,000 crore) rupees to the Indian government. Former Telecom Minister A. Raja is facing charges related to deliberately undervaluing the licenses, changing rules and deadlines to benefit certain companies, and ignoring advice from regulatory bodies.
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The document summarizes the 2G spectrum scam that occurred in India in 2008. The scam involved the Indian government issuing 2G licenses to private telecom companies at substantially lower prices than their market value, resulting in an estimated loss of 1.76 lakh crore (176,000 crore) rupees to the Indian government. Former Telecom Minister A. Raja is facing charges related to deliberately undervaluing the licenses, changing rules and deadlines to benefit certain companies, and ignoring advice from regulatory bodies.
The document summarizes the 2G spectrum scam that occurred in India in 2008. The scam involved the Indian government issuing 2G licenses to private telecom companies at substantially lower prices than their market value, resulting in an estimated loss of 1.76 lakh crore (176,000 crore) rupees to the Indian government. Former Telecom Minister A. Raja is facing charges related to deliberately undervaluing the licenses, changing rules and deadlines to benefit certain companies, and ignoring advice from regulatory bodies.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online from Scribd
The document summarizes the 2G spectrum scam that occurred in India in 2008. The scam involved the Indian government issuing 2G licenses to private telecom companies at substantially lower prices than their market value, resulting in an estimated loss of 1.76 lakh crore (176,000 crore) rupees to the Indian government. Former Telecom Minister A. Raja is facing charges related to deliberately undervaluing the licenses, changing rules and deadlines to benefit certain companies, and ignoring advice from regulatory bodies.
Copyright:
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New Delhi:
From the time allegations of misappropriation during the bidding for
allocation of 2G spectrum surfaced, till Telecom Minister A Raja's ouster, high drama charged both politics in Delhi and Tamil Nadu. So what exactly is the Spectrum Scam that led to all this?
WHAT IS SPECTRUM SCAM?
2G licenses issued to private telecom players at throwaway prices in 2008 CAG: Spectrum scam has cost the government Rs. 1.76 lakh crore CAG: Rules and procedures flouted while issuing licenses
Read more at: http://www.ndtv.com/article/india/what-is-2g-spectrum-scam-66418?cp
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
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
