2G Scam an UPDATE
From the time allegations of misappropriation during the bidding for allocation of 2G spectrum surfaced, till Telecom Minister A Raja's ouster, high drama charged both politics in Delhi and Tamil Nadu. So what exactly is the Spectrum Scam that led to all this?
WHAT IS SPECTRUM SCAM?
• 2G licenses issued to private telecom players at throwaway prices in 2008
• CAG: Spectrum scam has cost the government Rs. 1.76 lakh crore
• CAG: Rules and procedures flouted while issuing licenses
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 ...view middle of the document...
Brushing aside their concerns and advices, DoT , in 2008, proceeded to issue 122 new licenses for 2G spectrum at 2001 prices, by flouting every canon of financial propriety, rules and procedures,"
In November 2007, PM Manmohan Singh wrote to Raja expressing concern that given inadequate spectrum and the unprecedented number of applications received from fresh licenses, an auction process be followed. Raja replied saying that the auction of spectrum was considered by both TRAI and Telecom Commission and that his ministry has come to a conclusion that an auction "will be unfair, discriminator and capricious" as it would distort the level-playing field for new entrants.
The finance ministry questioned the "sanctity of continuing with a price determined way back in 2001 without any indexation or current valuation and sought review of the matter." DoT member (finance) agreed with the finance ministry, and sought an "in-depth analysis of the issue prior to taking any further action." To...