The article below puts forward all the important points which you’ll have to know for your CLAT regarding the 2G Scam. It has been written by Shailesh Singh, a student of IInd Semester of NALSAR. Do thank him for all the efforts he has made to collect and combine the relevant facts. Also, if you have any doubts or queries regarding the 2G Scam, go ahead and post your question as a comment below. Shailesh will surely answer the queries to your satisfaction.
After the Commonwealth Scam and The Adarsh Society controversy, another fraudulent act of the government came into light, The 2G Spectrum Scam. It is the biggest scam in modern India involving the colossal amount of Rs. 1.76 Lakh Cr.
Following are the relevant facts pertaining to the scam :
1. The scam dates back to 2008, when the 2G spectrum licenses were sold for 122 circles to some private companies for Rs. 1,658 Cr.
2. The Swan telecom, Unitech (that became “Uninor”after selling its stakes to Telenor), Idea Cellular, Spice, Datacom(later became Videocon Mobile), Tata Tele & Loop telecom were some of the companies who bought these licenses.
3. The issues with this distribution :
a. It was distributed on the arbitrary basis of “first come , first served”.
b. Insufficient time was given for applying. (Violation of TRAI Norms)
c. The distribution was highly underpriced. (That led to a loss of 1.76 Lakh Cr. To the government.)
4. After getting the license the companies sold their stakes to various MNCs and their company valuation increased drastically. For example: Unitech bought the spectrum for 1651 Cr. And sold 60% of its shares to Telenor (Norway) for Rs. 6120 Cr. Now the company value was 10, 731 Cr. Without even a single subscriber there was such monstrous profit. (this example is meant for your understanding and the stats may not be correct)
5. This scam was discovered after the sale of 3G Spectrum. Further, it because obvious when CAG submitted his report. ( CAG- Vinod Rai ) (Central Vigilance Commissioner- P J Thomas )
6. The Telecom Minister A. Raja came under suspicion. He had to resign from his post on Nov. 14.
a. He is an M.P. from Nilgiris constituency in the state of Tamil Nadu.
b. He was a Cabinet Minister in the Minstry of Communication and Information technology.
c. He is a member of DMK (Dravid Munnetra Kazhagam), a party in the United Progressive Alliance.
7. Even the Prime Minister Mr. Manmohan Singh is facing the problem since he defenced Mr. Raja by saying that all the procedures regarding distribution were executed after his consent.
8. The judicial proceedings in the matter :
a. A case has been filed by Mr. Subramanian Swamy , the President of Janta Party, to look into the 2G scam.
b. The case is before the bench of Justice G.S. Singhvi and Justice A.K. Ganguly.
c. Moreover, A petition has been filed by advocate Prashant Bhushan to examine the CAG report on spectrum allocation.
d. Initially Solicitor General Mr. Gopal Subramaniam was representing the government but now the Attorney General Mr. G.E. Vahanvati will present the government’s case before the bench. He has filed the affidavit on behalf of the P.M.