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About 2G.

What is 2G spectrum scam?

Who are Involved?

Media Response.

Market Response.

Steps Taken by Govt.

Political Response to Scam.

Conclution & Your Thoughts.

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2G spectrum technology was first launched in 1991

in Finland only in the GSM mobile phones but this isnot 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.

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Wharton's Singh feels foreign investors may view corruption inIndia "as the cost of doing business." But the country would attractmore foreign investments and business interest if it had a strongerreputation for being non-corrupt, he says. Investors are attractedto India because "there are not too many other options that areparticularly attractive ... but this can change rather quickly,

The 2G scandal is unlikely to hurt India's investment appeal

globally, according to Alok Shende, principal analyst and founderdirector of Ascentius Consulting. "Foreign investors may actuallyperceive the role of courts and rule of law, the role andindependence of the CAG and the will of the vernment to unearth

this scam as a positive attempt to spring-clean all that waswrong,"

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The 2G spectrum scam involved officials and ministers in theGovernment of India illegally undercharging mobile telephonycompanies for frequency allocation licenses, which they woulduse to create 2G subscriptions for cell phones. According to areport submitted by the Comptroller and Auditor General based onmoney collected from 3G licenses, the loss to the exchequer was

176,379 crore (US$38.27 billion). The issuing of the 2G licensesoccurred in 2008, but the scam came to public notice when the

Indian Income Tax Department investigated political lobbyist NiiraRadia and the Supreme Court of India took SubramaniamSwamy'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),CaseNo:423, Year:2010.

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A. Raja (Born May 10, 1963, Perambalur, Tamil Nadu, India) is anIndian politician from the Dravida Munnetra Kazhagam(DMK) politicalparty. He is a member of the 15th Lok Sabha representing the Nilgirisconstituency of Tamil Nadu. Raja was first elected to the Lok Sabha in1996 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 inthe UPA government. In 2007, he became cabinet minister forcommunication and information technology. On being re-elected in2009 he was again appointed cabinet minister for communication andinformation technology until being tainted in the 2G spectrum scam

and resigning in 2010.

Who is this Person?

One of the main person behind theIndias Largest Corporate Fraud.

http://en.wikipedia.org/wiki/Perambalurhttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Dravida_Munnetra_Kazhagamhttp://en.wikipedia.org/wiki/15th_Lok_Sabhahttp://en.wikipedia.org/wiki/Nilgiris_(Lok_Sabha_constituency)http://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Lok_Sabhahttp://en.wikipedia.org/wiki/Minister_of_statehttp://en.wikipedia.org/wiki/Cabinet_ministerhttp://en.wikipedia.org/wiki/2G_spectrum_scamhttp://en.wikipedia.org/wiki/2G_spectrum_scamhttp://en.wikipedia.org/wiki/Cabinet_ministerhttp://en.wikipedia.org/wiki/Minister_of_statehttp://en.wikipedia.org/wiki/Lok_Sabhahttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Nilgiris_(Lok_Sabha_constituency)http://en.wikipedia.org/wiki/15th_Lok_Sabhahttp://en.wikipedia.org/wiki/Dravida_Munnetra_Kazhagamhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Perambalur

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CHEAP TELECOM LICENSES

Entry fee for spectrum licenses in 2008 pegged at 2001 pricesMobile subscriber base had shot up to 350 million in 2008 from4million 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.

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Unitech, Swan Telecom got licenses without any prior telecomexperience .

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% stakefor Rs. 6200 crore.

All nine companies paid DOT only Rs.10,772 crore for 2Glicences.

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Anil Ambani - Reliance Group (ADAG)Shahid Balwa - DB Realty and DB Etisalat (Swan Telecom)Vinod Goenka - Dynamix Group

Venugopal Dhoot - Videocon GroupPrashant Ruia - Essar Group

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

prospective suspects in the scam.

http://en.wikipedia.org/wiki/Anil_Ambanihttp://en.wikipedia.org/wiki/Shahid_Balwahttp://en.wikipedia.org/wiki/Vinod_Goenkahttp://en.wikipedia.org/wiki/Venugopal_Dhoothttp://localhost/var/www/apps/conversion/current/tmp/scratch_2/04.%20Oh%20My%20Love%20By%20Kunal%20Ganjawala,%20Shreya%20Ghoshal.mp3http://localhost/var/www/apps/conversion/current/tmp/scratch_2/04.%20Oh%20My%20Love%20By%20Kunal%20Ganjawala,%20Shreya%20Ghoshal.mp3http://en.wikipedia.org/wiki/Venugopal_Dhoothttp://en.wikipedia.org/wiki/Vinod_Goenkahttp://en.wikipedia.org/wiki/Shahid_Balwahttp://en.wikipedia.org/wiki/Anil_Ambani

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Nira Radia, a former airline entrepreneur turnedcorporate lobbyist whose conversations withpoliticians and corporate entities were recorded bythe government authorities and leaked creatingthe Nira Radia tapes controversy.

Barkha Dutt, an NDTVjournalist alleged to havelobbied for A.Raja's appointment as minister.

Vir Sanghvi, a Hindustan Times editor allegedto have edited articles to reduce blame in the NiraRadia tapes.

http://en.wikipedia.org/wiki/Nira_Radiahttp://en.wikipedia.org/wiki/Nira_Radia

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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 inKalaignar TV.

Sun TV COO refused the allegations. Swan TelecomChief Balwa was arrested on Feb 8 and this led torumours of links with Anil Ambani's Reliance ADAG andit led to 20% fall of his stocks. Its reported that nearly2 Billion USD was eroded from his stocks .Spicejetstocks went down after reports of investigation on

Maran's recent takeover of Spicejet.

http://en.wikipedia.org/wiki/Kalanidhi_Maranhttp://en.wikipedia.org/wiki/Kalanidhi_Maran

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A. Raja arranged the sale of the 2G spectrum licenses belowtheir market value. Swan Telecom, a new company with fewassets, bought a license for 1,537 crore (US$333.53 million).

[15] Shortly thereafter, the board sold 45% of the company toEtisalat for 4,200 crore (US$911.4 million).

Similarly, a company formerly invested in real estate and nottelecom, the Unitech Group, purchased a license for 1,661crore (US$360.44 million) and the company board soon aftersold a 60% stake in their wireless division for 6,200 crore(US$1.35 billion) to Telenor

http://en.wikipedia.org/wiki/A._Rajahttp://en.wikipedia.org/wiki/A._Rajahttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/2G_spectrum_scamhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Telenorhttp://en.wikipedia.org/wiki/Telenorhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/2G_spectrum_scamhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/A._Raja

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Media sources such as OPEN and Outlook reported thatBarkha Dutt and Vir Sanghvi knew that corporate lobbyistNira Radia was influencing the decisions of A. Raja. Thecritics alleged that Dutt and Sanghvi knew about corruptionbetween the government and the media industry, supportedthis corrupt activity, and suppressed news reporting thediscovery of the corruption.

http://en.wikipedia.org/wiki/OPEN_(Indian_magazine)http://en.wikipedia.org/wiki/Outlook_(magazine)http://en.wikipedia.org/wiki/Outlook_(magazine)http://en.wikipedia.org/wiki/OPEN_(Indian_magazine)

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The tapes leaked to the public include conversations betweenNira Radia and Ratan Tata. Tata petitioned the government toacknowledge his right to privacy and demanded accountabilityfor the leak, with the Minister for Home Affairs, CBI, IndianIncome Tax Department, the Department of

Telecommunication, and the Department of InformationTechnology as respondents in the petition.

http://en.wikipedia.org/wiki/Ratan_Tatahttp://en.wikipedia.org/wiki/Minister_for_Home_Affairs_(India)http://en.wikipedia.org/wiki/Central_Bureau_of_Investigationhttp://en.wikipedia.org/wiki/Indian_Income_Tax_Departmenthttp://en.wikipedia.org/wiki/Indian_Income_Tax_Departmenthttp://en.wikipedia.org/wiki/Department_of_Telecommunicationhttp://en.wikipedia.org/wiki/Department_of_Telecommunicationhttp://en.wikipedia.org/wiki/Department_of_Information_Technologyhttp://en.wikipedia.org/wiki/Department_of_Information_Technologyhttp://en.wikipedia.org/wiki/Department_of_Information_Technologyhttp://en.wikipedia.org/wiki/Department_of_Information_Technologyhttp://en.wikipedia.org/wiki/Department_of_Telecommunicationhttp://en.wikipedia.org/wiki/Department_of_Telecommunicationhttp://en.wikipedia.org/wiki/Indian_Income_Tax_Departmenthttp://en.wikipedia.org/wiki/Indian_Income_Tax_Departmenthttp://en.wikipedia.org/wiki/Central_Bureau_of_Investigationhttp://en.wikipedia.org/wiki/Minister_for_Home_Affairs_(India)http://en.wikipedia.org/wiki/Ratan_Tata

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Nira Radia

M.Karunanidhi

A Raja (Telecom minister)

Arun Jaitley

Barkha dutt (Journalist)

Arun Shourie

Pramod Mahajan

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Set up a special branch of CBI to look into the matter.

Telecom Minister resigns his post after Scam.

A Raja also arrested by the Police.

CBI is also interacting with the brothers of A Raja and alsosome business men.

Government of India take some important steps looking

forward in this Scam:

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In early November 2010Jayalalithaa accused the Tamil Nadu statechief minister M Karunanidhiof protecting A.Raja fromcorruption charges and called for A. Raja's resignation. By midNovemberA.Raja resigned.

In mid November the comptroller Vinod Raiissued show-causenotices to Unitech, S Tel, Loop Mobile, Datacom (Videocon), andEtisalat to respond to his assertion that all of the 85 licensesgranted to these companies did not have the up-front capital

required at the time of the application and were in other waysillegal.

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In response to the various allegations , the Govt of India has

replaced the then incumbent Telecom minister ,A Raja with

Kapil Sibal who has taken up this charge in addition to being

the Union minister for Human Resources Development.Mr

Sibal contends that the "notional" losses quoted are a result

of erroneous calculations and insists that the actual losses

are nil.

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The CBI conducted raids on Raja and four other telecomofficials - former telecom secretary Siddharth Behura, Raja'spersonal secretary R K Chandolia, member telecom K Sridharand DoT deputy director general A K Srivastava on 8

December 2010. Raja, Behura and Chandolia were arrested on Feb 2nd 2011.

http://en.wikipedia.org/wiki/CBIhttp://en.wikipedia.org/wiki/CBI

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If we talk about the Administration of India we all must say it is not awell maintained or a well centralized Administration as comparison

to other Asian countries.

Poor Administration of India is just because of the poor politicalleaders of our country. They used to do some unofficial work for thesake of money, this makes Administration of India weaker. This isnot the only example which makes Administration of India affected

badly there are lots of other factors which makes it worse.

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