Mobile and allied networks work on specific frequencies allotted to each operator in a band of frequencies known as a spectrum. . Any particular mobile network will operate only on the frequencies it’s been allotted. The Government is responsible for such allocation. One such allocation in the 2G network spectrum took place in India in the year 2008 under the ‘able tutelage’ of the then Telecom Minister A. Raja, which today we all identify as the 2G spectrum scam. The scam is so magnanimous that today, the TIME magazine lists it as the 2nd Worst Abuse of Power right next to the WaterGate Scam of the United States. There are certain pertinent facts about it which exactly show as to what the scam actually is all about.
One thing to be noted is that the loss of Rs. 1.76 Lakh Crore we hear, is the revenue that the Government “would have” generated had it done proper auction of the spectrum frequencies rather than it being a ‘loss’ in literal terms. Nevertheless, the exchequer is 1.76 lakh crore less than what it should have been.
The first fallacy that came to light in the procedure of auction was the fact that the frequencies were allotted in the year 2008 at prices supposed to be in the year 2001. In 2001, the customer base of mobile phone companies was a mere 4 million, where in 2008, it grew to a staggering 350 million. It can be easily concluded that the basic loss that has been incurred has been through this faulty and fraudulent auction. Taking example of two companies, one Unitech and the other Swan Telecom. They were allotted frequencies at a paltry (yes, that’s what this amount of money was ) Rs. 1661 crore and Rs 1537 Crores respectively. And after this, these companies sold off their 60% and 45 % shares at staggering Rs. 6200 Crores and Rs 4200 Crores.
This was only the first nail in the coffin. The number of deliberate inconsistencies that have been played into this matter are alarmingly appalling. Next is the open way in which these companies (there are a total of nine in number) were unduly favoured. The Government has been following system of auction based on ‘first come, first serve’ policy ever since 1994 in the process of allocation of resources this has been recently affirmed by the Supreme Court through its Advisory Jurisdiction (Special Reference No.1 of 2012, 27th September 2012). This was blatantly violated. There was a cut-off date till which the interested companies could apply for licenses citing their particulars and other requisites. This date was preponed arbitrarily and the website of the Department of Telecommunications (DoT) stated that those who applied between the time 15:30hrs till 16:30hrs would be given the licenses. So the companies like Unitech and Swan, who allegedly had a tip-off regarding the same amendment to the procedure, kept their documents ready in line, and eventually got the licenses.
Both Unitech and Swan Telecommunications are companies without any prior experience and of these, Swan could not even fulfil the eligibility criteria. But still, both were preferred.
The first question that comes to mind is as to what gratification did the then Telecommunications Minister A. Raja get, and how?
The question is not yet answered as clearly and convincingly, but of what is known, he has been said to have received a kickback, or bribe, in simple words, of Rs. 214 Crores. Now here comes the role of Ms.Kanimozhi. She’s not in any telecom business, but owns around 80% of stake in the channel Kalaignar TV, which inturn was used by Raja and his associates to route the money that he was to obtain.
The entire conspiracy behind this scam, is only partly unfolded. A. Raja might just be a pawn in the army of the lead conspirators. The myriad of millions that have been lost as a result cannot be said to benefit only Raja. It is obvious that there are many more beneficiaries to this, though they will remain under the veil, as they did during all other scams we have ever known, be it Bofors or the Tatra Truck scam.
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