SCAM

What is 2G?

•‘2G’ means: “Second-Generation Wireless Telephone Technology”

•2G is relatively new technology in the field of mobile.

•2G is not just a network but a good technology.

•2G spectrum was the revolutionary technology in their time,

it comes with some more benefits.1. SMS facility was first started with network.2. Safe for the use, means security level was high.3. 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. As 2G was launched in

1991 so many other technologies overcome it

with 2.5G, 2.75G technologies but the latest

technology in present world is 3G.

The 2G spectrum scam involved officials and ministers in the

Government of India illegally undercharging mobile telephony

companies for frequency allocation licenses, which they would use

to create 2G subscriptions for cell phones. According to a report

submitted by the Comptroller and Auditor General based on

money collected from 3G licenses, the loss to the exchequer was 176,379 crore (US$38.27 billion). The issuing of the 2G licenses

occurred in 2008, but the scam came to public notice when the

Indian Income Tax Department investigated political lobbyist Niira

Radia and the Supreme Court of India took Subramaniam

Swamy's complaints on record [With Case type:Writ Petition

(Civil),Case No:10, Year:2011]. The case details of the main PIL

filed with the supreme court is Type:Writ Petition (Civil),Case

No:423, Year:2010.

What do you mean by 2G scaM?

A. Raja (Born May 10, 1963, Perambalur, Tamil Nadu, India) is an

Indian politician from the Dravida Munnetra Kazhagam(DMK) political

party. He is a member of the 15th Lok Sabha representing the Nilgiris

constituency of Tamil Nadu. 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 to the Lok Sabha in 2004, he became a cabinet minister in

the UPA government. In 2007, he became cabinet minister for

communication and information technology. 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.

Who is this Person?

One of the main person behind the

India’s Largest Corporate Fraud.

Corporate personalities involved

Anil Ambani - Reliance Group (ADAG)

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

Vinod Goenka - Dynamix Group

Venugopal Dhoot - Videocon Group

Prashant Ruia - Essar Group

All of them have either been question by the CBI or are

prospective suspects in the scam.

Nira Radia, a former airline entrepreneur turned

corporate lobbyist whose conversations with

politicians and corporate entities were recorded by

the government authorities and leaked creating the

“Nira Radia tapes controversy”.

Media persons and Lobbyists involved

Barkha Dutt, an NDTV journalist alleged to have

lobbied for A.Raja's appointment as minister.

Vir Sanghvi, a Hindustan Times editor alleged

to have edited articles to reduce blame in the Nira

Radia tapes.

Impact on stock markets•The first casualty in Stock Markets once Raja was

arrested was DB Realty.

•DB Realty had given 200+ crores to Kalaignar TV (owned by Karunanidhi's Wife) .

•The news led to 20% fall in the stock prices of DB Realty.

•Sun TV had its shares fall by 10% on the next day following rumours of Kalanidhi Maran having stake in Kalaignar TV.

•Sun TV COO refused the allegations. Swan Telecom Chief Balwa was arrested on Feb 8 and this led to rumours of links with Anil Ambani's Reliance ADAG and it led to 20% fall of his stocks. Its reported that nearly 2 Billion USD was eroded from his stocks .Spicejet stocks went down after reports of investigation on Maran's recent takeover of Spicejet.

A. Raja arranged the sale of the 2G spectrum licenses below their

market value. Swan Telecom, a new company with few assets,

bought a license for 1,537 crore (US$333.53 million). [15] Shortly

thereafter, the board sold 45% of the company to Etisalat for 4,200

crore (US$911.4 million).

Similarly, a company formerly invested in real estate and not

telecom, the Unitech Group, purchased a license for 1,661 crore (

US$360.44 million) and the company board soon after sold a 60%

stake in their wireless division for 6,200 crore (US$1.35 billion) to

Telenor

Shortfall of money

Relationship between media

&

government

Media sources such as OPEN and Outlook reported that

Barkha Dutt and Vir Sanghvi knew that corporate lobbyist

Nira Radia was influencing the decisions of A. Raja. The

critics alleged that Dutt and Sanghvi knew about corruption

between the government and the media industry, supported

this corrupt activity, and suppressed news reporting the

discovery of the corruption.

The tapes leaked to the public include conversations between

Nira Radia and Ratan Tata. Tata petitioned the government to

acknowledge his right to privacy and demanded accountability

for the leak, with the Minister for Home Affairs, CBI,

Indian Income Tax Department, the

Department of Telecommunication, and the

Department of Information Technology as respondents in the

petition.

Ratan Tata petitions over

Tape leak

Thank you