WHAT IS 2G

2G is Second- generation wireless telephone technology 2G is not just a network but a good technology 2G spectrum technology was first launched in 1991 2G spectrum was the revolutionary technology & it comes with some more benefits: SMS facility was first started with network.

 Safe for the use, means security level was high.  Environmental conditions was very good for this network & network shortage was there.

HISTORY OF 2G
2G spectrum technology was first launched in 1991 in Finland only in the GSM mobile phones. After 2G was launched, the previous mobile telephone systems were retrospectively dubbed 1G As 2G was launched in 1991 so many other technologies overcome it with 2.5G, 2.75G technologies but the latest technology in present world is 3G.

THE 2G SPECTRUM SCAM

The 2G spectrum scam 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. The 2G spectrum licenses allocation scandal is one of several to have emerged in the past few months, tarnishing the reputation of Prime Minister Manmohan Singh, whose government has gone on the defensive against an emboldened opposition. The scandal has tarnished the Congress-led UPA governments image, spooked investors and has led to the Norwegian Prime Minister writing to his Indian counterpart seeking fair treatment for Telenor.

WHO IS THIS PERSON?

One of the main person behind the India s Largest Corporate Fraud.

A. Raja (Born May 10, 1963, Perambalur, Tamil Nadu, India) is an Indian politician from the Dravida Munnetra Kazhagam(DMK) political party. 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. 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.

BENEFITS OF SCAM
 The CAG's report details how the telecom ministry under Raja went about allotting the spectrum licenses on the cheap, defying market logic, government directives and rules, and calls for transparency  On January 10, 2008 ISSUED LICENSES TO 121 COMPANIES  It had received 575 applications, 408 of which were filed after the September 24 press release -- an indicator of the huge unsatisfied demand for scarce spectrum.  DUE TO THE FIRST COME- FIRST BASIS, it actually favored a few bidders who seemed to have been privy to advance information.

CORPORATE PERSONALITIES INVOLVED

Anil Ambani - Reliance Group (ADAG)

Shahid Balwa- DB Realty (Swan Telecom)

Vinod GoenkaDynamix Group

Venugopal DhootVideocon Group

Prashant Ruia Essar Group

MEDIA PERSONS AND LOBBYISTS INVOLVED

Nira Radia, a former airline entrepreneur turned corporate lobbyist whose conversations with politicians and corporate entities were recorded by the government authorities and leaked creating the Nira Radia tapes controversy.

Barkha Dutt, an NDTV journalist alleged to have lobbied for A.Raja's appointment as minister.

Vir Sanghvi, a Hindustan Times editor alleged to have edited articles to reduce blame in the Nira Radia tapes.

IMPACT ON STOCK MARKETS

The first casualty in Stock Markets once Raja was arrested was DB Realty. DB Realty had given 200+ crores to Kalaignar TV (owned by Karunanidhi's Wife) . The news led to 20% fall in the stock prices of DB Realty. Sun TV CO. refused the allegations. Swan Telecom Chief Balwa was arrested on Feb 8 and this led to rumours of links with Anil Ambani's Reliance ADAG and it led to 20% fall of his stocks. Its reported that nearly 2 Billion USD was eroded from his stocks .Spicejet stocks went down after reports of investigation on Maran's recent takeover of Spicejet.

CORPORATIONS INVOLVED
Unitech Group:
A real estate company entering the telecom industry with its 2G bid; sold 60% of its company stake at huge profit to Telenor after buying licensing (Including land values properties for towers).

Swan Telecom:
It sold 45% of its company stake at huge profit to Emirates Telecommunications Corporation (Etisalat) after buying licensing.         

Videocon Telecommunications Limited Reliance Communications Sistema Shyam Mobile (MTS) Sistema Mobile Russia Tata Communications Vodafone Essar Loop Mobile S Tel Dishnet Wireless Allianz Infra

RESPONSE TO SCAM
In early November 2010 Jayalalithaa accused the Tamil Nadu state chief minister M Karunanidhi of protecting. A.Raja from corruption charges and called for A. Raja's resignation. By mid November A.Raja resigned. In mid November the comptroller Vinod Rai issued show-cause notices to Unitech, S Tel, Loop Mobile, Datacom (Videocon), and Etisalat to respond to his assertion that all of the 85 licenses granted to these companies did not have the up-front capital required at the time of the application and were in other ways illegal. In response to the various allegations , the Govt. of India has replaced the then incumbent Telecom minister ,A Raja with Kapil Sibal who has taken up this charge in addition to being the Union minister for Human Resources Development. Mr Sibal contends that the "notional" losses quoted are a result of erroneous calculations and insists that the actual losses are nil.

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.

RELATION TO BUSINESS ETHICS

If we talk about the Administration of India we all must say it is not a well maintained or a well centralized Administration as comparison to other Asian countries. Poor Administration of India is just because of the poor political leaders of our country. They used to do some unofficial work for the sake of money, this makes Administration of India weaker. This is not the only example which makes Administration of India affected badly there are lots of other factors which makes it worse.

PRESENTED BY:BY:TMS-179 TMS-180 TMS-181 TMS-182 TMS-183 TMS-184 JEHAN MEHTA MIT MEHTA PRERIT MEHTA RUCHI MEHTA SABA MEMON NIDHI MERCHANT