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The 2G Spectrum scam was listed second in the Times Magazine “Top 10 Abuses of Power” in year 2011. It was alleged that in year 2008, several politicians and government officials has charged lesser rates to mobile telephony companies for the frequency allocation licences used in creating 2G subscriptions for cell phone users.
Political dramas continued around the misappropriation of rates and finally lead to Telecom Minister A Raja’s termination. CAG evaluated an estimate of Rs. 176,645 crore as the difference in the amount to be collected from the allocation of spectrum as per the law and actual amount that was actually collected. There were inconsistencies in the estimation done by various authorities. While CBI estimated a loss of 30,984.55 crore on 2 April, 2011, TRAI came up with an estimation of a gain of 3000 crore from the allocation of 2G spectrum.
The judgement of Supreme Court of India on PIL (Public Interest Litigation) put to rest all the speculations by declaring the allotment of spectrum as “unconstitutional and arbitrary” and further canceling all the 122 licenses issued during the tenure served by A. Raja, the prime accused in the scam. It was audited that spectrum licenses in 2008 were issued at 2001 prices as a result of which the mobile subscribers had increased multifold from 4 million to 350 million in a year.
The other allegations included- non compliance to the set procedures like no auction process being followed for allotment for spectrum, licenses issues on First-cum first-serve basis to the mobile companies. While the Telecom Regulatory Authority of India (TRAI) had recommended that spectrum be auctioned at market rates, Raja ignored the advice and favored some of the companies and in a way squandered the national asset.
The highly benefited companies by 2G spectrum Scam were Unitech, Swan Telecom amongst others. It was found that Swan Telecom got the licenses in spite of its inability to meet the eligibility criteria. While Swan paid Rs. 1537 crore, Unitech Wireless got the license for Rs 1661 crore. A total of Rs. 10,772 crore was paid by 9 DoT companies to buy the 2G licenses.
Others were also involved in the conspiracy with A. Raja. Kanimozhi, is who an MP and DMK Chief Karunanidhi’s daughter was also into trap, as she along with Dayalu Ammal who are the owners of Kalaignar T.V. channel.
CBI alleged that Swan Telecom had sent a Rs. 214 crore as bribe to A. Raja which ultimately reached Kalaignar T.V. through a mess of companies. Shahid Balwa was also accused of colluding with Telecom Minister and helping him channelise the enticement he received into real estate. Even Sanjay Chandra, Unitech Chief was accused of cheating and conspiracy. ADAG was controlled by 3 senior executives of Anil Ambani who also landed up in Tihar Jail. Sidharth Behura was accused of disallowing the other Telecom Companies from participation in allotment and hence faced charges like Raja. Raja’s Secretary RK Chandolia also faced the same charges.
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