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.

What do you mean by 2G scam?

The 2G spectrum scan 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.

 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.

Who is this Person?

One of the main person behind the Indias Largest Corporate Fraud.

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.

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. 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.

Steps taken by Government after Scam

Government of India take some important steps looking forward in this Scan:

Set up a special branch of CBI to look into the matter. Telecom Minister resigns his post after Scan. A Raja also arrested by the Police. CBI is also interacting with the brothers of A Raja and also some business men.