Friday, July 15, 2011

Brief Report on 2G Scam


2G SCAM IN INDIA


Introduction 

According to CAG report released in 2008, country bore the loss of Rs. 1.76 lac crore due to non-auctioning of the spectrum through the involvement of former Telecom minister A. Raja. According to an estimate, the money of Govt. or we can say common man which is robbed in 2G scam, with the same amount of money, food security could be provided to all the families below poverty line and above poverty line for two years. And with the same money, The Right to Education Act could be converted into the reality, it should be remembered that Rs. 35,000 crore is needed for the operations of Right to Education Act per year. Now it is clear that how many people could use these facilities but this 2G scam has deprived them. At present this 2G spectrum scam is the biggest scam in the Indian history.


Base of Allocation
             
On the basis of old prices of 2001, licenses were sold to nine companies in just Rs. 1651 crore each. While according to the CAG report, the price of each of these licenses was between Rs. 7442 crore to 47,912 crore. The CAG report states that “it was amply demonstrated between September 2007 and December 2008 that its (spectrum) demand in view of its scarcity was at its peak and thus would have fetched the market determined price at a much higher level than that of 2001 entry fee.  In spite of bidding, ‘first come first serve’ policy was used. Rules and procedures flouted while issuing licenses. Eighty five out of the 122 licenses issued in 2008, did not satisfy the basic eligibility conditions set by the DoT and had suppressed facts, disclosed incomplete information and submitted fictitious documents for getting licenses and thereby access to spectrum.



How Scam Happened?  
             
With the favouring decisions of A. Raja the licenses were allocated to the pet companies like SWAN Telecom and Unitech. Raja and his secretary and DoT secretary Sidharth Behura forcely provided licenses to liking companies. Ignoring the advice of the Prime Minister, and the Law Ministry, Raja went ahead with arbitrarily deciding that the cut-off date for issue of application of license would be advanced to September 25, 2007 and the applications received would be decided on first-come-first-serve (FCFS) basis, it was done only for the favouring companies. It is also seen that the Telecom Commission was not even consulted at the time of grant of 122 spectrum licences in 2008. On the prices of spectrum Raja overruled the Views and concerns TRAI, Ministry of Finance and Hon'ble Prime Minister's suggestions were not followed. On the allocation of 2G spectrum Ministry of Law and Justice advised a Group Of Minister to look after this process but it was also ignored.


Accused of Scam


Some known allegedly accused of the 2G spectrum scam are:

A. Raja                        -           Former Telecom Minister
R. K. Chandoliya        -           Secretary of A. Raja
Sidharth Behura         -           Former Telecom Secetary
Shahid Balwa              -           M.D., DB realty
P. J. Thomas               -           Secretary of the DoT
Kanimojhi                   -           Member of Rajyasabha


Probes in Scam

The Central Bureau of Investigation (CBI) investigating the 2G spectrum scam which has damaged a large amount of Govt. money. Other than CBI, two other committees has been set up to look into this scam.
Public Accounts Committee(PAC):
The report submitted by PAC Chairman Murli Manohar Joshi, which is most likely to be contested by members of the ruling UPA, Public Accounts Committee has held the Prime Minister’s Office (PMO) and the Cabinet Secretariat responsible for failing to take ''corrective action'' while censuring the prime minister for ''some unfortunate omissions''.
Joint Parliamentary Committee (JPC):
The whole winter session of Parliament violated because of the demand of setting up a Joint Parliamentary Committee. At last, in parliament on 22 February 2011 Prime Minister did the announcement of the setting up the JPC. Now the Joint Parliamentary Committee (JPC), examining the 2G scam chaired by Congress leader P C Chacko, on the allocation and pricing of telecom licenses and spectrum.


Coclusion
             
This 2G spectrum scam is the biggest scam in Indian history, in which a central cabinet minister A. Raja misused his powers and with the Govt. Officers and owners of private companies made a loss of Rs.1.76 lac crore . If this amount of money would have used in the welfare of the society, a large no. of people could be helped through different appreciable schemes like Right to Education Act, Mid Day Meal, MNREGA, NRHM etc. These types of scams are the hurdles in the way of development in an economy. If these type of scam come into know regularly it would give heavy shocks to the growth of our economy and state of the country.


                                                                                                                                   By  Atul Singh



References:-
CAG report, Govt. Of India, 2008
NEWS from:-
IBN Live
NDTV
Dainik Jagran
Amar Ujala
The Hindu

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