The 2G spectrum scam is widely regarded as one of the most significant corruption scandals in India’s history, not only because of the staggering financial implications but also due to its impact on governance, politics, and the corporate sector.
It involved the fraudulent allocation of 2G spectrum licenses to telecom companies at significantly lower prices than their actual market value, leading to an estimated loss of ₹1.76 lakh crore to the public exchequer. The scam exposed deep-rooted corruption in the Indian political and corporate sectors.
What is Spectrum?
Spectrum is a collection of electromagnetic waves that allows the transmission of sound and data. Spectrum is a natural resource and a national asset. The government allocates frequencies of these electromagnetic waves to telecom and communication companies to operate their voice and data services. The indian governemnt can sell the spectrum in two ways, one is auction, another is fixed price to any company.
Behind the 2G Spectrum Scam
In the year 2007-09, the Government of Congress Ruling India. At the time, Congress leader A. Raja was the Communications and IT Minister of India. According to the source, He was the main culprit behind the scam. In the year 2008, he allocated the 122 licenses of 2G spectrum with the fixed price option and made a condition that favours some telecom companies.
Further came to know that he sold the license at a very low price and without any rules and regulations. He reduced the deadline for application of 2G spectrum from 01-10-2007 to 05-09-2007, due to which many companies were unable to apply for licenses. On the date of issuing the license, that is on 10-01-2008, he gave only a few hours to the companies for the submission of the cheque and other documents. On 16-11-2010. The Comptroller and Auditor General of India gave their report and told Raja did not take any advice from the Law and Finance ministry.
Investigation of 2G Spectrum Scam
For the 2G spectrum scam, the CBI conducted further investigations into the fraud. CBI charge-sheeted the 12 people in this case, including Raja, his secretary R K Chandolia, former telecom secretary Siddhart Behura and the Former MD of Swan Telecom, Shahid Balwa. The charge sheet of 127 pages and having 88,000 annexures, was documented on Saturday under the steady gaze of Judge O. P. Saini in the exceptional court set up for the 2G case.
The organisation has likewise recorded three corporate majors, which supposedly profited from the preference shown by Raja in range distribution.
- Reliance Telecom.
- United Wireless.
- Swan Telecom.
In the charge sheet, the CBI has given a detailed account of how Raja, in collusion with the other accused, caused a loss of approximately Rs 30,984 crore to the state exchequer. The CBI has affirmed that in May 2007, not long after Raja took over as the telecom service, he designated Chandolia and Behura, who were known to him, in a similar division with an exception to incubate criminal connivance. The CBI will document an advantage charge sheet by April 25.
The Accused was found in the scam
- R Raja – Ex. Telecom Minister.
- Siddhar Behura – Ex. Telcom Secretary.
- R Chandolia – A. Raja Secretary.
- Shahid Usman Balwa – Swan Promoter.
- Sanjay Chandra – Unitech MD.
- Vinod Goena – Director of DB Realty (Mumbai).
- Gautam Doshi – Group MD of Reliance Telecom.
- Hari Nair – Relianc ADAG senior vice-president.
- Surendra Pipara – Group President, Reliance ADAG.
- Swan Telecom.
- Reliance Telecom.
- Unitech Wireless.
CAG Role in the Case
This report for the year ending March 2010 has been set up for the accommodation of the President under Article 151 of the Constitution. The report contains the consequences of the assessment by the Audit of the Issuance of Licenses and Allocation of 2G Spectrum of the Department of Telecommunication and Information Technology. The review covers the period from 2003-04 to 2009-10.
Also Read This: Adarsh Housing Society Scam | Supreme Court grants bail to accused in ₹ 9000 crore scam.
License to Ineligible Applicants
The process followed by the DoT for verification of applications for UAS licenses for confirming their eligibility involved due diligence, fairness, and transparency, leading to the grant of licenses to applicants who were not eligible.
Eighty-five out of the 12 licenses issued in 2008 were found to be issued to Companies that did not follow the basic eligibility conditions set by the DoT and had suppressed facts, disclosed incomplete information and submitted fictitious documents for getting UAS licenses and thereby access to spectrum.
Court Verdict on Scam
According to the Investigation, the Telecom Minister A. Raja was in charge of causing the state exchequer to lose Rs 1,76,379 crore by dispensing 2G range licenses at disposable costs. The court found that the indictment neglected to demonstrate the charges. This decision, notwithstanding, doesn’t abrogate the Supreme Court judgement or detract from the way that the licenses issued during 2G range distribution were unlawful.
Nearly six years later, the Supreme Court ordered to cancellation of the 122 2G licenses. A special court acquitted all the accused, including former Telecom Minister A. Raja and DMK chief M Karunanidhi’s daughter, Kanimozhi, was named as the perpetrator of one of the biggest scams in the history of India.
The court said the prosecution had “miserably failed” to prove any charge against any of the accused. There is no proof on the record delivered under the steady gaze of the court showing any guilt in the demonstrations supposedly dedicated by the accused people identifying with an obsession for the cut-off date, control of first-start things out served policy.
Post Controversy of the 2G Spectrum Scam
After the 2G controversy, the government switched back to the auctioning of the spectrum, and indeed witnessed highly competitive bidding, lending credence to the high revenue loss figures expounded by the then CAG Vinod Rai.
- In 2010, 3G and 4G telecom spectrum were auctioned, and the government received a total revenue of Rs. 1.06 lakh crore, demonstrating the price that this resource could command in the market.
- Ever since the governments under the UPA-II and the nDA have allocated spectrums using competitive bidding and received huge sums of money as revenue.
- In 2012, the Supreme Court of India cancelled 122 licenses given out in 2008, calling the allocation unfair. The Supreme Court had scrapped the licenses in 2012, citing irregularities.
- Now, further emphasising the value of spectrum, the present telecom minister Manoj Sinha said after the court verdict on Thursday that the government raised Rs. 1.9 lakh crore in 2015 and Rs 65,789 crore in 2016, which was much more than under the first-come-first-served method.
- The CBI, which had estimated a staggering Rs 30,984 crore loss to the exchequer due to the manipulated 2G license allocation in 2008, challenged the acquittals before the Delhi High Court in March 2018.
- In March 2024, the high court admitted the CBI’s appeal, noting contradictions in the trial court verdict that required deeper legal scrutiny.
Find out more on Inforcroft! n
