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2 G Scam: All we should know..!!


All you must know about 2G scam…

Biggest Scam of Independent India busted in 2010. Amount involved: 1.76 lakh crore(17600000000000 just count zeroes).

Time Magazine called it the second biggest abuse of power after US President Richard Nixon's Watergate scandal.

In very simple language, the spectrum licenses were gifted actually(not sold) to desired preferred, customers at a throwaway prices, the price which was 1/10th of the current market price, spectrum was sold at the market price  of 2001 in 2008 and that price was 1/10th of the market price. Last date for filling up the forms for getting the licenses was manipulated as per convenience to impart benefit to some of preferred companies. On 10th January, 2008 at 2:30 PM, Raja informed on Ministry website that whichever company brings the Demand draft of Rs. 1651 crore the same day between 3:30 PM to 4:30 PM, will get the license, however previously almost 575 companies applied for spectrum, but the cut off date kept on fluctuating according to convenience and not just once, it fluctuated a number of times. Surprisingly, still 9 companies were able to get the Demand draft, later it was established that demand draft was of previous date and time, which clearly indicated that these 9 companies were already having the information.


Let’s go through the timelines:


May 2007: A Raja becomes Telecom minster.

Aug 2007: DOT initiated the process of allotment of 2G spectrum.

2008: Swan Telecom, Unitech and Tata teleservices sold their stakes to Etisalat, Telenor and Docomo respectively.

May 2009: CVC was informed of the illegal issues involved in selling up the 2G licenses.
Sept 2010: ED informed SC, about the FEMA norms violated in deal.

10 Nov 2010: CAG informs of loss of 1.79 lakh crore to exchequer (National loss). Means, in case the spectrum would have been sold at current market price, would have added this much amount of money to the national treasury, imaging the amount…. Could have helped India in lowering down the account/trade deficit.

 14-15 Nov. 2010: Raja resigns as Telecom minister, Kapil Sibbal takes additional charge of ministry.

Feb. 2011: Raja taken under custody, sent to Tihar jail.

2 Apr. 2011: CBI files first chargesheet, names Raja, Chandolia and Behura among others.

Nov 2011: Trial in this case begins.

Dec 2011: CBI files a third charge-sheet, naming Essar Group promoters Anshuman and Ravi Ruia, its director (strategy and planning) Vikas Saraf, Loop Telecom Pvt. Ltd promoters Kiran Khaitan and her husband I. P Khaitan, along with Loop Telecom, Loop Mobile India Ltd and Essar Tele Holding.

Feb 2012: SC cancels all 122 licenses granted to the 9 companies, distributed during Raja’s tenure.

Apr 2014: ED charge sheeted Raja, Kanimozhi.

Aug 2015: CBI files assets case against Raja.

Nov 2015: The Supreme Court rejects a plea by Kanimozhi for quashing of charges against her.

26 April 2017: Special CBI court reserves verdict in 2G spectrum allocation case.

21 December 2017: Special court acquits all accused.

21 Dec 2017: Total number of 1552 pages in verdict pronounced in special court.

Main Accused:

Andimuthu Raja: Conspiracy/cheating DOT in granting license to Swan Telecom and Unitech Wireless.


Siddhartha Behura(Former Telecom Secy.): Cheating DOT for issuing license to Swan and Unitech.

 Karunanidhi’s daughter M K Kanimozhi(DMK Rajya Sabha MP and stakeholder in Kalaignar TV):  Received bribe along with Raja and Siddhartha of Rs. 200 Cr for helping Swan telecom in getting license.

 Sharad Kumar(Kalaignar TV MD): Close aide of Kanimozhi.

 R K Chandolia: Abused public position, criminal conspiracy in helping grant of licenses to Swan and Unitech.

 DMK Supremo Karunidhi’s wife Dayalu Ammal, Shahid Usman Balwa(the then director of Swan Telecom pvt. Ltd.), Vinod Goenka, Asif Balwa, Karim Morani, Rajiv Aggarwal, P Amirtham
Besides Kalaignar TV, the other companies accused in the case are STPL (now Etisalat DB Telecom (P) Ltd), Kusegaon Realty (P) Ltd, Cineyug Media & Entertainment (P) Ltd, Dynamix Realty, Eversmile Construction Company (P) Ltd, Conwood Construction & Developers (P) Ltd, DB Realty Ltd and Mystical Construction (P) Ltd (earlier known as Nihar Constructions (P).

Key Facts:

📌 80,000 pages: length of charge sheet filed  by CBI in April, 2011.

 📌Loss involved: INR 1.76 lakh crore, estimated by CAG.

 📌Witnesses by CBI: 154.

 📌Total cases: 3(2 by CBI, 1 by ED).

 📌On January 10, 2008, DOT issued a press release at 2:30 pm stating that licenses would be issued between 3:30 pm-4:30 pm to those who came with a draft of Rs. 1651 crore.

 📌The CAG report says that all the demand drafts were actually backdated, thereby implying that the telecom operators had prior knowledge of the licenses that were to be issued.

 📌2 companies out of total 9 companies, which came up for license were not even telecom companies (Swan and Unitech).

 📌Both of these companies’ representatives were sitting in Raja’s room, at the time of press release. They were assured of the licences by Raja’s Secretary.

 📌These 2 companies were not having any previous experience in telecom, no equipments in place…not even a single tower.

 📌According to law, unless a company works in telecom for 3 years after getting license, they cannot sell their licenses further. Swan further sold to Etisalat(Dubai based company) and Unitech sold to Telenor(A Norwegian company, having business in Pakistan and Bangladesh).

 📌Interestingly Etisalat and Telenor were not even allowed to do any kind of business in India due to National Security reasons, but stakes were sold to them.

 📌Uninor telecom, this company applied for a license on October 1, 2017, much after the cut off date of September 25. Raja accommodated this company too in violation of the rules.

 📌Etisalat was alleged to have links with ISI. Promoter of Etisalat in India, Shahid Balwa was allegedly having relations with Dawood Ibrahim.

 📌Telenor use to buy equipment from Chinese army, which if ever used in India’s communication system, could have been a big National Security threat.

 📌Chidambaram was in power at that time, he allegedly helped Raja in defying the rules.

We respect the judiciary, however, it’s a point of debate how it can be a Zero loss theory, if everyone is acquitted, then who was behind this scam… how come those 9 companies got a demand draft of INR 1651 crore, in just 45 minutes, and that too in a country like India…where getting a demand draft is not 2 minute, ready to eat maggi thing..!!

We should think:


What was loss to the nation? Are only Tax payers bound to drive the economy?

What was my personal loss? Have we paid more money to the low quality services?

Photo credit: TOE

Mr. Arun Jaitley reaction on this verdict:


Photo credit: India today

Although INC leader Sibal, calls it a moral, legal victory, still he should answer my question asked above to the common man of India.


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