Full 2G Spectrum Scam Story
- 2G licenses issued to private telecom players at throwaway prices in 2008
- CAG: Spectrum scam has cost the government Rs. 1.76 lakh crore
- CAG: Rules and procedures flouted while issuing licenses.
- Person accused is the Telecom minister : A.Raja
The Comptroller and Auditor General of India (CAG) said it has submitted to the government the report on the 2G spectrum allotment that is presumed to have caused a revenue loss of up to Rs. 1.76 lakh crore.
- CAG has accused the telecom ministry for undervaluing 2G spectrum, sold to new players in 2008, and held that the allotment price was not realistic, which has caused a revenue loss of up to Rs. 176,700 crore to the government.
- The report is also believed to have castigated telecom minister A Raja for ignoring the advice of finance and law ministries on allocation of 2G spectrum to benefit a few operators.
- It is also believed to have criticised telecom regulator TRAI standing as a helpless spectator when its recommendations were being ignored or misused.
- The CAG report said the price at which the spectrum was alloted in 2008 was based on 2001 prices, which was quite low and has resulted in a loss to the government exchequer.
- Also, no proper auction method was followed and no bids were taken to sell out the spectrum.
Yielding to relentless opposition pressure, Union telecom minister A Raja resigned 0n the wake of the 2G Spectrum allocation scam on 14th november.
Who All Benefited from This Scam ?
- 2G spectrum was allocated beyond contracted quantity to 9 firms including Bharti, Vodafone, Idea, BSNL, Reliance, Aircel," the report said.Niira Radia is said to be involved.Read her details.
- Department of Telecommunications (DoT) circumvented the rules to help Swan Telecom, which effectively acted as a front for Reliance Telecommunications. The charges in the CAG report are that Swan should not have been considered for a license because Reliance Communications held 10.7% stake in Swan - and according to the rules, a telecom operator cannot own more than 10% stake in another telecom company operating in the same service area. "Email ID of Swan Telecom was shown as that of a Reliance ADA group official
- Another big beneficiary of the 2G spectrum allocation was Unitech Wireless, which had no experience in the telecommunication sector.
- After Unitech got the license for a throwaway price of Rs. 1,661 crore, it sold 60 per cent stake to Telenor Asia for a whopping Rs. 6,200 crore.
The political crisis after the scam
- The stand-off between the government and the Opposition over 2G scam continues. The Opposition wants a Joint Parliamentary Committee (JPC) to investigate the 2G scam.
- Parliament has not functioned at all this winter session - the Opposition says it won't let the House get to work till a JPC is announced.
- Niira Radia also seem to be involved in big way to 2G spectrum scam.She is a corporate lobbynist for big corporate leaders like TATA group, Reliance Industries etc.
Source : http://mustknowledge.co.cc
9 comments:
Brief and precise description..very useful.
pl check 'Ramani's blog', he has given a very detailed report about 2g scam.
simple,precise,useful information on 2g scam,good job
really helpful one...can u post the complete information...?
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concise and relevant information.
useful and precise...nice one..
wud dis info b enuf to b prepared fr n intrtview?
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