The document summarizes the 2G spectrum scam in India, where politicians and officials illegally undercharged mobile companies for licenses to create 2G subscriptions. Key points: - In 2008, 122 licenses were granted at 2001 prices rather than auctioning them, resulting in an estimated loss of $29 billion to the government. - Former telecom minister A. Raja ignored advice and flouted rules to benefit companies with no experience, like Unitech and Swan Telecom. - Money was allegedly routed through shell companies to Kanimozhi, the daughter of a state chief minister, as a kickback for her party's support. - The Supreme Court cancelled the licenses and an investigation

1. 2G
SPECTRUM
SCAM

2. What is 2G Spectrum ?

3. 2G
2G (or 2-G) is short for second-
generation wireless telephone technology.
 Phone conversations can be digitally encrypted.
 Systems are significantly more efficient on the spectrum allowing
for far greater mobile phone penetration levels.
 2G introduced data services for mobile, starting with SMS text
messages.

4. Spectrum
spectrum refers to the part of the electromagnetic spectrum
corresponding to radio frequencies.
Electromagnetic waves in this frequency range, called radio waves,
are used for radio communication and various other applications.
So, private players use this spectrum and charge subscription from
mobile users and this way they makes money.

5. Allocation of Spectrum
85%
15%
Defence Department
Telecom Department
www.dot.gov.in

6. INTRODUCTION
2G spectrum scam was a scam involving
politicians and government officials in India
illegally undercharging mobile
telephony companies for frequency
allocation licenses, which they would then use
to create 2G spectrum subscriptions for cell
phones.

7. BACKGROUND
India is divided into 22 telecom zones, with
281 zonal licenses in the market. In 2008, 122
new second generation (2G)Unified Access
Service (UAS) licenses were given to telecom
companies at the 2001 price and on a first-
come-first-serve basis.

8. The shortfall between the money
collected and the money that the law
mandated to be collected is estimated
to be INR1766.45 billion (US$29
billion).

9. 3STOOGES REPORT
on 2 April 2011 by the investigating agency, Central Bureau of
Investigation (CBI), the loss was pegged at INR309845.5 million
(US$5.1 billion).
on 19 August 2011 in a reply to CBI, Telecom Regulatory
Authority of India (TRAI) said that the government gained over
INR30 billion (US$490 million)

10. Kapil Sibal, the Minister of
Communications & IT, claimed in
2011, during a press conference, that
"zero loss" was caused by distributing
2G licenses on first-come-first-served
basis.

11. CAG REPORT
 Licenses were issued to firms with no prior
experience in the telecom sector
 Spectrum scam has cost the
government Rs. 1.76 lakh crore
 Rules and procedures flouted while issuing
licenses
Vinod Rai

12. The Supreme Court declared allotment of
spectrum as "unconstitutional and arbitrary"
and quashed all the 122 licenses issued in 2008
during tenure of A. Raja

13. Parties Involved in the Scam

14. Politicians
ARaja.
Former Union Cabinet Minister (Communication and Information
Technology – 2007 & 2009).
Criminal breach of trust by a public servant under section 409, criminal
conspiracy under section 120-B, cheating under section 420 & forgery
under sections 468 and 471. Booked under the Prevention of Corruption
Act for accepting illegal gratification.

15. What are the charges on former
telecom minister a raja?
 Entry fee for spectrum licenses in 2008 pegged at 2001 prices.
 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.
NDTV.com

16. Status – Taken into custody (arrested) by CBI on
2 February 2011, On 9 May 2012 he applied for
bail for the first time since his arrest and was
granted bail on 15 May 2012. As of August
2012, trial is being conducted in Special CBI
Court.

17. M. K. Kanimozhi
Daughter of five-time Chief Minister of Tamil
Nadu, M. Karunanidhi. Political party DMK. She is a
member of parliament, representing Tamil Nadu in
the Rajya Sabha (the upper house of Indian
Parliament).

18. Status – Taken into custody (arrested) by CBI on
20 May 2011.Granted bail on 28 November
2011 after spending 188 days in judicial
custody. As of August 2012, trial is being
conducted in Special CBI Court.

19. Bureaucrats
 Siddharth Behura Telecom Secretary when licenses
were granted.
 RK Chandolia Raja's private secretary when licenses
were granted

20. Corporate Executives
 Sanjay Chandra Former MD, Unitech Wireless
 Gautam Doshi Group MD, Reliance Anil Dhirubhai Ambani Group
 Hari Nair Senior vice-president, Reliance Anil Dhirubhai Ambani Group
 Surendra Pipara Senior vice- President, Reliance Anil Dhirubhai Ambani
Group.
 Vinod Goenka Promoter and managing director, DB Realty & Swan
Telecom
 Shahid Balwa Promoter, DB Realty & Swan Telecom

21. Corporations
 Unitech Wireless
 Reliance Telecom
 Swan Telecom
 Loop Telecom Pvt Ltd
 Loop Mobile India Ltd
 Essar Tele Holding
 Essar (Parent group of Essar
Tele Holding)

22.  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
NDTV.com

23. The role of kalaignar tv
 One of the companies named by the CBI in the 2G scam - Swan
Telecom - allegedly sent Mr Raja a Rs. 214-crore kickback that
was routed through a maze of companies but rested finally with
Kalaignar TV channel in Chennai that is owned mainly by
Kanimozhi and Dayalu Ammal. Together, they have 80% stake
in the company.
 Sharad Kumar, the Managing Director of Kalaignar TV, owns the
balance and has also been accused of conspiring with Mr Raja.

24. Shahid Balwa transferred 214-crore to Kusegaon
Fruits and Vegetables of which Shahid Balwa's
younger brother Asif Balwa was a director. Kusegaon
Fruits & Vegetables then transferred to Cineyug
Films whose promoter Karim Morani transferred it to
Kalaignar TV.

25. Radia tapes controversy
The Radia tapes controversy relates to the
telephonic conversations between Nira Radia,
an influence peddler and an acquaintance of
the (then) Indian telecom minister A. Raja,
and with senior journalists, politicians, and
corporate houses, taped by the Indian Income
Tax Department in 2008–09.

26.  Bharkha Dutt (Group Editor of NDTV)
 Vir Sanghvi (Editorial Director of Hindustan Times)

27. Current Status
CBI court sends 1700 questions for Raja,
others in 2G scam
Smriti Singh & Sana Shakil, TNN | Mar 28, 2014, 06.02AM IST
Times of India

28. Special CBI Judge O P Saini supplied
draft questionnaire, containing 1,718
questions to the advocates
representing the 17 accused.

29. Thank You