2G Spectrum Sdgcam

8/10/2019 2G Spectrum Sdgcam

1/17

2G SPECTRUM SCAM


2/17

What is 2G ??? 2G means second-generation wireless telephone

technology.

Second generation 2G cellular telecom networks were

commercially launched on the GSM standard in Finland in1991.

2G introduced data services for mobile, starting with SMStext messages.

2G was launched in 1991 so many other technologiesovercome it with 2.5G, 2.75G technologies but the latesttechnology in present world is 3G.


3/17

WHAT IS 2G SCAM???

2G licenses issued to private telecom players at

throwaway prices in 2008.Spectrum scam has cost

loss to the government Rs. 1.76 Lakh crore. Rules

and procedures flouted while issuing licenses.


4/17

HOW DID IT START???

On November, 2008, Subramanian Swamy wrote toPrime Minister Manmohan Singh and followed it upwith four more letters seeking sanction to prosecute A.Raja in regards to 2G telecom spectrum political

corruption scam.When the Prime Minister ManmohanSingh didn't take any decision Swamy went toSupreme Court. On 27 November 2010 SubramanianSwamy announced that he will file a criminal caseagainst former union minister A. Raja in the 2G

Spectrum Scam before the Special Court for CorruptionCases in connection with the charges of irregularities in2G spectrum allocation


5/17

WHO CAUSED IT???

The telecom minister Andimuthu Raja caused

the 2G scam.

Raja caused the loss of $40 billion to the

Government by selling the Licenses of

network to the private players without

following any rules and regulations.


6/17

ALLEGATIONS CHEAP TELECOM

LICENCES

Rules changed after the game had begun

Cut-off date for applications advanced by aweek

Licenses issued on a first-come-first-servedbasis No proper auction process followed, nobids invited

Raja ignored advice of TRAI, Law

Ministry, Finance Ministry TRAI hadrecommended auctioning of spectrum atmarket rates


7/17

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 forRs.1537crore , sold 45% stake to Etisalat for Rs.4200 crore

Unitech Wireless got license for Rs.1661 crore, sold

60% stake for Rs.6 200 crore All nine companies paidDot only Rs.10,772 crore for 2G licenses


8/17

PEOPLE INVOLVED

Kanimozhi who

was named as

co-conspirator

with A Raja

Shahid Balwa the

promoter of the

swan telecom

who according to

CBI had centralrole in this scam

Unitech chief

Sanjay Chandra

who wasinvolved for

cheating

Three top senior

executives of

ADAG : Mr

Gautam Doshi ,

Mr Hari Nair , Mr

Surendra Pipri


9/17


10/17

EFFECTS

The investor sentiment has been negative

and telecom stocks plunged in India.

The other side of the argument is that the

telecom sector is seeing a lot of growth

opportunities and going ahead there will be

multiple avenues for the telecom service

providers to boost their revenues.


11/17

EFFECTS

The telecom companies are now looking at data

services to enhance their market share and

voice services will eventually become a matter

of complimentary services.

The advent of 3G has also considerably lifted

investor interests in the stocks and there is ahope that innovative business models and VAS

will be the game changers for the telecom stocks


12/17

REMEDIAL MEASURES


13/17


14/17

CORPORATE PERSONALITIES

INVOLVED Anil Ambani - Reliance Group (ADAG)

Shahid Balwa - DB Realty and DB Etisalat (Swan Telecom)

Vinod Goenka - Dynamic Group

Venugopal Dhoot - Videocon Group

Prashant Ruia - Essar Group

All of them have either been question by the CBI orareprospective suspects in the scam.


15/17

IMPACT ON STOCK MARKETS

The first casualty in Stock Markets once Raja wasarrested was DB Realty.DB Realty had given 200+crores to Kalaignar TV (owned by Karunanid his Wife) .The news led to 20% fall in the stock prices of DB

Realty.Sun TV had its shares fall by 10% on the nextday following rumors of Kalanidhi Maran having stakein Kalaignar TV.Sun TV COO refused the allegations.Swan Telecom Chief Balwa was arrested on Feb 8 andthis led to rumors of links with Anil Ambanis Reliance

ADAG and it led to 20% fall of his stocks. Its reportedthat nearly 2 Billion USD was eroded from his stocks.Spice jet stocks went down after reports ofinvestigation on Marans recent takeover of Spice jet.


16/17

CORRUPTED ADMINISTRATION OF

INDIA

If we talk about the Administration of India weall must say it is an unorganised Administrationas compared to other Asian countries. Poor

Administration of India is just because of thepoor political leaders of our country. They dosome unofficial work for the sake of money, thismakes Administration of India weaker. This is

not the only example which makesAdministration of India affect badly ,but thereare lots of other factors which makes it worse.


17/17

Documents

2G Spectrum Sdgcam