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2G SPECTRUM
SCAM
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WHAT IS 2G SPECTRUM SCAM ?
The 2G spectrum case was an alleged scam that the politicians
and private officials under the United Progressive Alliance
coalition government in India were accused of committing. It
was claimed that the magnitude of the scam was
2,867,800,000,000 rupee.
PEOPLE INVOLVED IN THE SCAM
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1. Kanimozhi Karunanidhi, DMK leader and party chief
M Karunanidhi's daughter
2. Former telecom minister A Raja
3. Former telecom secretary Siddharth Behura
4. A Raja's former private secretary
5. Reliance ADAG Group Managing Director Gautam
Doshi
6. Reliance ADAG senior Vice President Hari Nair
7. Reliance ADAG Group President Surendra Pipara
8. Swan Telecom Promoter Shahid Usman Balwa
CONTINUATION….
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9. Swan Telecom Promoters Vinod Goenka
10. Managing Director of Unitech Ltd Sanjay Chandra
11. Asif Balwa, Director of Kusegaon Fruits and Vegetables (P) Limited
12. Rajiv Agarwal, Director of Kusegaon Fruits and Vegetables (P) Limited
13. Bollywood producer Karim Morani
14. Kalaignar TV director Sharad Kumar
15. M/s Reliance Telecom Limited
16. M/S Swan Telecom (P) Limited (Now M/s Etisalat DB Telecom (P) Ltd)
17. M/s Unitech Wireless (Tamil Nadu) Ltd
EFFECTS OF THE SCAM ON TELECOM
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INDUSTRY
The fear of another scam pushed the government into a rather
long period of so-called ‘policy paralysis’. To play it safe, the
price of spectrum in all subsequent auctions was benchmarked
to the high 3G rates .
The CAG report in 2010 benchmarked the artificially high 3G
spectrum price to conclude that A Raja’s decision to offer 2G
spectrum at an administered price caused the government a
loss of Rs 1.76 lakh crore
CONTINUATION…
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The high price forced telecom operators to borrow money,
something that would later lead to a burgeoning debt burden for
many.
The overall debt of the telecom industry, around Rs 2,41,000
crore in 2012-13, more than doubled to Rs 4,60,000 crore in
2016-17.
CONTINUATION..
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In 2012, when the Supreme Court (SC) ordered the
scrapping of 122 telecom licences granted by tainted minister
A Raja.
ETICAL
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Too much power in hands of bvery few.
Middlemen used for access to those in power.
Neutrality of media questionable.
Wrong use of power leads to great turmoil.
With the outbreak of then 2G spectrum scam , the above
mentioned ethical issues on the part of the government,
regulatory bodies, media and industry came into the forefront.
REASONS FOR THE SCAM
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POLITICAL REASON
High spending in elections
BUSINESS REASON
Concessions
MEDIA REASONS
z RESPONSE TO THE SCAM
In mid Nov 2010, Ms.Jayalalitha accused the Tamilnadu chief
minister Mr.Karunanidhi for protecting A. Raja against the
corruption charges and called for A.Raja’s resigination .By mid
Nov A.Raja resigned.
In mid Nov Vinod Rai issued a show cause notice to Unitech, S
Tel, Loop Mobile, Datacom[VIDEOCON], Etisalat to respond to
his assertion that all 85 licenses granted to these companies did
not have the upfront capital required at the time of application
and were given in illegal ways .
CONTINUATION..
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In responses to various allegations , the government has
replaced the then incumbent telecom minister A.Raja by Kapil
Sabil who has taken up this charge in addition of giving the
Union Minister for Human Resource Development.
The CBI conducted raids on Raja and other 4 telecom officials .
Raja, Behura and Chandolia were arrested on Feb 2nd 2011.
z INDIA IN WORLD’S EYES
Wharton Singh , an American economist feels thatforiegn
investors may view corruption in India as “the cost of doing
business” . The country can attract many foreign investment and
business interest if it had a strong reputation of ‘non-corrupt’.
The 2G scam is unlikely to hurt India investment appeal globally.
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THANK YOU
BY
JAYAPRIYA 19D2427
THARANYA 19D2440
POOJA 19D2430
SHREEDEVI 19D2416
