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Contents
• About 2G.
• What is 2G spectrum scam?
• Who are Involved?
• Media Responses & Market
  Response
• Steps Taken by Govt.
• Political Response to Scam.
• Conclusion & Your Thoughts.
What is 2G?
• ‘2G’ means: “Second-Generation Wireless
                  Telephone Technology”


• 2G spectrum was the revolutionary technology in their
time,
  it comes with some benefits.
      1. SMS facility was first started with 2G.
      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.
What do you mean by 2G
             sCam?
1. T 2G spectrum scam inv v officias a minist s in t
    he                             ol ed       l nd       er he
   G er
     ov nmentofIndiailegal under r mobil t ephony
                      l ly       chaging        e el
   compa forfr
         nies equencyal t l
                          locaion icenses, w t w d
                                            hich hey oul
   use t cr t 2Gsubscr ions forcel phones.
        o eae          ipt         l
2. A ding t ar tsubmited byt Comptolera A or
     ccor o epor            t     he       r l nd udit
  G a ba on moneycolect fr 3 l
    ener l sed             l ed om G icenses, t l t
                                                  he oss o
  t exchequerw s
   he           a


176,3 cr e (US$3 .27bilion). T issuing oft 2Gl
      79 or       8     l he              he icenses occured in 20 8 butt sca ca t
                                                          r       0 , he m me o
publ not w t India Income T x Depat inv igaed pol ica l
    ic ice hen he n             a       rment est t it l obbyistNiir R diaa t
                                                                         a a nd he
Supr Cour ofIndiat Subr ma m Sw my's compl int on r d [W h Case t W it
    eme t            ook a nia a               a s ecor it               ype: r e
Pet ion (Civil
   it         ),Case No:1 0, Year 1 ]. T ca det il oft ma PILfil w h t supr
                                 :201 he se a s he in                 ed it he eme
cour is Type: W it Pet ion (Civil
    t           r e it          ),Case No:423, Year 0.
                                                     :201
Who is this Person?


                                               One of the main person behind the
                                               India’s Largest Corporate Fraud.




A.   Raja 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.
B.    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.
C.   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.
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 
4million 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.
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.
media Persons and Lobbyists
         inVoLVed
    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”.


     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.
shortfaLL of money

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 
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.
ratan tata Petitions
               oVer taPe Leak


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.
Persons inVoLVed in 2G
       sPeCtrum sCam

•   Nira Radia
•   M.Karunanidhi
•   A Raja (Telecom minister)
•   Arun Jaitley
•   Barkha dutt (Journalist)
•   Arun Shourie
•   Pramod Mahajan
CorPorations inVoLVed
Unitech Group:
A real estate company entering the telecom industry with its 2G bid; sold
60% of its company stake at huge profit to Telenor after buying licensing
(Including land values properties for towers).
Swan Telecom:
It sold 45% of its company stake at huge profit to Emirates
Telecommunications Corporation (Etisalat) after buying licensing.
Videocon Telecommunications Limited
Reliance Communications
Sistema Shyam Mobile (MTS) – Sistema Mobile Russia
Tata Communications
Vodafone Essar
Loop Mobile
S Tel

Allianz Infra
stePs taken by
                   GoVernment after
                         sCam
Government of India take some important steps
looking forward in this Scam:

•   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
    also some business men.
resPonse to sCam

• In early November 2010 Jayalalithaa accused the Tamil
  Nadu state chief minister M Karunanidhi of protecting
  A.Raja from corruption charges and called for A. Raja's
  resignation. By mid November A.Raja resigned.

• In mid November the comptroller Vinod Rai issued show-
  cause notices to Unitech, S Tel, Loop Mobile, Datacom
  (Videocon), and Etisalat to respond to his assertion that all
  of the 85 licenses granted to these companies did not have
  the up-front capital required at the time of the application
  and were in other ways illegal.
resPonse to sCam

• 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.
resPonse to sCam
• The CBI conducted raids on Raja and four other
  telecom officials - former telecom secretary
  Siddharth Behura, Raja's personal secretary R K
  Chandolia, member telecom K Sridhar and DoT
  deputy director general A K Srivastava on 8
  December 2010.
• Raja, Behura and Chandolia were arrested on Feb
  2nd 2011.
• The Supreme Court on 2ND FEB 12 ordered the
  government to revoke all 122 telecoms licences
  issued under a scandal-tainted 2008 sale.
resPonse to sCam
• UNITECH WIRELESS -- 22 licences

• LOOP TELECOM PRIVATE LTD -- 21 licences

• VIDEOCON TELECOMMUNICATIONS -- 21 licences

• IDEA CELLULAR -- 13 licences

• TATA TELESERVICES -- 3 licences

•   MOSTELY AFFECTED TELECOM COMPANY IS
    UNINOR
CorruPted administration of
            india

If we talk about the Administration of India we all must say it is not a 
 well maintained or a well centralized Administration as comparison 
                      to other Asian countries.

  Poor Administration of India is just because of the poor political 
leaders of our country. They used to do some unofficial work for the 
 sake of money, this makes Administration of India weaker. This is 
 not the only example which makes Administration of India affected 
      badly there are lots of other factors which makes it worse.
thank you

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2g

  • 1.
  • 2. Contents • About 2G. • What is 2G spectrum scam? • Who are Involved? • Media Responses & Market Response • Steps Taken by Govt. • Political Response to Scam. • Conclusion & Your Thoughts.
  • 3. What is 2G? • ‘2G’ means: “Second-Generation Wireless Telephone Technology” • 2G spectrum was the revolutionary technology in their time, it comes with some benefits. 1. SMS facility was first started with 2G. 2. Safe for the use, means security level was high. 3. Environmental conditions was very good for this network & no network shortage was there.
  • 4. 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.
  • 5. What do you mean by 2G sCam? 1. T 2G spectrum scam inv v officias a minist s in t he ol ed l nd er he G er ov nmentofIndiailegal under r mobil t ephony l ly chaging e el compa forfr nies equencyal t l locaion icenses, w t w d hich hey oul use t cr t 2Gsubscr ions forcel phones. o eae ipt l 2. A ding t ar tsubmited byt Comptolera A or ccor o epor t he r l nd udit G a ba on moneycolect fr 3 l ener l sed l ed om G icenses, t l t he oss o t exchequerw s he a 176,3 cr e (US$3 .27bilion). T issuing oft 2Gl 79 or 8 l he he icenses occured in 20 8 butt sca ca t r 0 , he m me o publ not w t India Income T x Depat inv igaed pol ica l ic ice hen he n a rment est t it l obbyistNiir R diaa t a a nd he Supr Cour ofIndiat Subr ma m Sw my's compl int on r d [W h Case t W it eme t ook a nia a a s ecor it ype: r e Pet ion (Civil it ),Case No:1 0, Year 1 ]. T ca det il oft ma PILfil w h t supr :201 he se a s he in ed it he eme cour is Type: W it Pet ion (Civil t r e it ),Case No:423, Year 0. :201
  • 6. Who is this Person? One of the main person behind the India’s Largest Corporate Fraud. A. Raja 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. B. 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. C. 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.
  • 7. 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  4million 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. 
  • 10. media Persons and Lobbyists inVoLVed 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”. 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.
  • 11. 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.
  • 13. 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.
  • 14. ratan tata Petitions oVer taPe Leak 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.
  • 15. Persons inVoLVed in 2G sPeCtrum sCam • Nira Radia • M.Karunanidhi • A Raja (Telecom minister) • Arun Jaitley • Barkha dutt (Journalist) • Arun Shourie • Pramod Mahajan
  • 16. CorPorations inVoLVed Unitech Group: A real estate company entering the telecom industry with its 2G bid; sold 60% of its company stake at huge profit to Telenor after buying licensing (Including land values properties for towers). Swan Telecom: It sold 45% of its company stake at huge profit to Emirates Telecommunications Corporation (Etisalat) after buying licensing. Videocon Telecommunications Limited Reliance Communications Sistema Shyam Mobile (MTS) – Sistema Mobile Russia Tata Communications Vodafone Essar Loop Mobile S Tel Allianz Infra
  • 17. stePs taken by GoVernment after sCam Government of India take some important steps looking forward in this Scam: • 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 also some business men.
  • 18. resPonse to sCam • In early November 2010 Jayalalithaa accused the Tamil Nadu state chief minister M Karunanidhi of protecting A.Raja from corruption charges and called for A. Raja's resignation. By mid November A.Raja resigned. • In mid November the comptroller Vinod Rai issued show- cause notices to Unitech, S Tel, Loop Mobile, Datacom (Videocon), and Etisalat to respond to his assertion that all of the 85 licenses granted to these companies did not have the up-front capital required at the time of the application and were in other ways illegal.
  • 19. resPonse to sCam • 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.
  • 20. resPonse to sCam • The CBI conducted raids on Raja and four other telecom officials - former telecom secretary Siddharth Behura, Raja's personal secretary R K Chandolia, member telecom K Sridhar and DoT deputy director general A K Srivastava on 8 December 2010. • Raja, Behura and Chandolia were arrested on Feb 2nd 2011. • The Supreme Court on 2ND FEB 12 ordered the government to revoke all 122 telecoms licences issued under a scandal-tainted 2008 sale.
  • 21. resPonse to sCam • UNITECH WIRELESS -- 22 licences • LOOP TELECOM PRIVATE LTD -- 21 licences • VIDEOCON TELECOMMUNICATIONS -- 21 licences • IDEA CELLULAR -- 13 licences • TATA TELESERVICES -- 3 licences • MOSTELY AFFECTED TELECOM COMPANY IS UNINOR
  • 22. CorruPted administration of india If we talk about the Administration of India we all must say it is not a  well maintained or a well centralized Administration as comparison  to other Asian countries. Poor Administration of India is just because of the poor political  leaders of our country. They used to do some unofficial work for the  sake of money, this makes Administration of India weaker. This is  not the only example which makes Administration of India affected  badly there are lots of other factors which makes it worse.