2G Spectrum Ghotala Case Study I Latest The spectrum scam News, Photos, Latest News
2G Spectrum Scam
Spectrum which is quite unheard term in India led to a scam resulting in loss of 1.76 Lakh crore to Indian government revenue as per Comptroller and Auditor General (CAG). A. Raja who was 4 times Member of Parliament (MP) from Dravida Munnetra Kazhagam (DMK) was made telecom minister in United Progressive Alliance (UPA) government in 2007.
Soon after taking over the post of telecom minister he initiated the process of allotment of 2G spectrum in India.Spectrum refers to the range of radio waves which are used for communication purposes.
2G Spectrum Ghotala Case Study
If anyone can use any radio waves, then it will be just like a fish market and proper communication will not occur. So, to solve this problem spectrums are allocated by Department of Telecom to the service provider on chargeable basis. India has 22 telecommunication zones and 122 new 2G united access service was granted. On 25th September 2007, a press note was released by Department of Telecom (DoT) for accepting application of 2G spectrum allotment and deadline for accepting application was fixed on 1st October 2007. As on 1st October 2007 575 applications were received by Department of Telecom from 46 firms.
When spectrum licenses were finally allotted the press note released was not taken seriously by Department of Telecom and spectrum was allotted based on the application received on 25th September 2007 between 3.30 pm and 4.30 pm instead of pre-opening cutoff date 1st October as released earlier in the press note by DoT. Government could have charged the price of Spectrum as of 2008 but it was allotted on the charge of spectrum as in 2001 resulting into a huge loss to governments revenue. After the allotment of 2G spectrum then Finance ministry wrote to Department of telecom over the procedure which was adopted by DoT for the spectrum allotment.
We
can understand the severity of this scam by just going through the profit
booked by the firm after the allotment of Spectrum. Swan Telecom bought the
spectrum license amounting 15.37 billion, but they sold their 45% stake at 42
Billion to Etisalat and Unitech Wireless bought the spectrum license amounting
16.61 billion, but they sold their 60% stake at 62 Billion to Telenor. In 2009
a telecom watchdog NGO filed a formal complaint with Central Vigilance
Commission (CVC) about the irregularities in the spectrum allotment. After some
time, CVC instructed Central Bureau of Investigation (CBI) to investigate the
matter.
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After
CBI investigated the matter, they found irregularities and registered FIR. Once
FIR was registered, CBI filed 80000 pages charge-sheet in front of the trial
court. Other than A. Raja (Telecom Minister), M.K Kanimozhi (MP from DMK),
Siddharth Behura (Telecom Secretary), R.K. Chandolia (PA to A. Raja) were
accused in the matter. It was alleged that A. Raja received bribe amounting
almost 3000 crores as bribe. Kalaignar TV which is owned and operated by DMK
first family got investment amounting almost 200 crores by telecom firm to whom
spectrum was allotted. After hearings which continued over years, A. Raja and
Kanimozhi were acquitted and CBI said that the loss was 30985 crores only.
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