The 2G spectrum scam was a major political scandal that took place in India between 2007 and 2008, involving the sale of mobile telephone licenses by the Indian government at below-market rates. The scandal was exposed by the Comptroller and Auditor General of India (CAG) in a report.
The report showed that the Indian government had sold spectrum licenses to mobile phone companies for Rs. 1,600 crore (US$250 million) which were worth much more. The CAG calculated that the government had lost Rs. 176,645 crore (US$27 billion) in potential revenue by selling the licenses at below-market rates.
The report led to a major political outcry in India, with the main opposition party, the Bharatiya Janata Party (BJP), calling for the resignation of the then-Prime Minister, Manmohan Singh. The BJP also demanded a Joint Parliamentary Committee (JPC) to investigate the matter.
The JPC was formed, and its report was released in August 2011. The report exonerated the then-Prime Minister and the then-Finance Minister, P. Chidambaram, of any wrongdoing.
The Supreme Court of India also gave a clean chit to the then-Prime Minister and the then-Finance Minister. However, it did order the cancellation of all 122 licenses that had been issued in the 2008 spectrum sale.
The 2G spectrum scam was a major blow to the Indian National Congress party, which was in power at the time. The party lost power in the subsequent 2014 general election, and the BJP came to power.
The main accused in the 2G spectrum scam, A. Raja, was convicted and sentenced to jail in 2017.
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What is the 2G spectrum scam?
The 2G spectrum scam was a major political scandal that rocked India in 2010. Then telecom minister A. Raja was accused of corruption and irregularities in the allocation of 2G spectrum licenses to select telecom companies.
The Central Bureau of Investigation (CBI) filed charges against Raja and others, alleging that he had favored certain companies in the allocation of 2G spectrum licenses. The Supreme Court later cancelled all the 122 licenses that were issued by Raja.
The 2G spectrum scam was one of the biggest corruption scandals in India. It not only led to the resignation of the telecom minister but also shook the entire UPA government.
Who was involved in the scandal?
The 2G spectrum scandal was a major political scandal that came to light in India in late 2010. It was alleged that some politicians and bureaucrats sold mobile phone licences to companies at artificially low prices, causing a loss of Rs. 1.76 lakh crore (US$26 billion) to the Indian government. The scandal was exposed by the Comptroller and Auditor General of India (CAG) in its report on the allocation of 2G spectrum from 2001–2009.
The main accused in the scandal were former Minister of Communications and Information Technology A. Raja, and several bureaucrats and corporate executives. Raja was arrested on 2 February 2011 and later released on bail. In May 2011, the Supreme Court of India cancelled all 122 licences that were issued by Raja, and ordered the government to re-auction the spectrum.
The scandal led to a huge loss of public faith in the Indian government, and was a major setback for the then-ruling United Progressive Alliance (UPA) government. It also resulted in a major political upheaval, with several high-profile resignations and arrests.
What are the consequences of the scandal?
The 2G spectrum scandal was a major political scandal that broke in India in 2010. It was alleged that politicians and officials sold mobile phone licenses to select companies at below-market prices, causing a significant loss to the Indian government.
The Supreme Court of India later cancelled all 122 licenses that were issued during the scandal, and ordered a fresh auction of the licenses. The scandal also led to the resignation of the then-Telecom Minister, A. Raja, and the arrest of several other officials.
The 2G spectrum scandal was a major blow to the Indian government, and led to a loss of public trust in the country’s political system. It also had a negative impact on the economy, and is estimated to have cost the government over Rs. 1.76 lakh crore (US$26 billion).
The Aftermath of the 2G Spectrum Scam
The 2G spectrum scam was a major political scandal that rocked India in 2010. Then Telecom Minister A. Raja was accused of selling mobile phone licenses to select companies at below market prices and causing the Indian government to lose out on billions of dollars in revenue.
The scandal resulted in the resignation of Raja and the eventual cancellation of the mobile phone licenses that were issued. The Supreme Court of India ruled that the licenses were illegal and ordered the companies to pay back the money that they had received from the government.
The aftermath of the 2G spectrum scam has been far-reaching. The Indian government has lost billions of dollars in revenue and the telecom sector has been left in a state of uncertainty. The Supreme Court’s decision to cancel the mobile phone licenses has also raised questions about the future of the telecom sector in India.
The 2G spectrum scandal has also had a negative impact on the Indian economy. The cancellation of the mobile phone licenses has led to job losses and has hit the investment climate in the country. The telecom sector is a vital part of the Indian economy and the 2G spectrum scandal has dealt a blow to the sector.
Lessons Learned from the 2G Spectrum Scam
The 2G spectrum scam was a major political scandal that rocked India in 2010. It was one of the biggest corruption scandals in the country’s history, and led to the resignations of several high-ranking politicians and officials.
The scandal revolves around the illegal sale of 2G spectrum licenses by the Indian government to select telecom companies at below-market prices. This resulted in a huge loss of revenue for the government, and was a major blow to the country’s economy.
The scandal came to light in late 2010, after an investigative report by the Comptroller and Auditor General of India (CAG) revealed that the government had sold the 2G spectrum licenses for just Rs. 1,600 crore, when the actual market value was over Rs. 3 lakh crore.
This led to a major political upheaval, with the opposition demanding the resignations of then Prime Minister Manmohan Singh and Telecom Minister A. Raja. Both resigned from their posts in 2011, and several other politicians and officials were also arrested and charged in connection with the scandal.
The 2G spectrum scandal was a major setback for the Indian economy, and exposed the rot in the country’s political system. It also highlighted the need for stronger regulation and transparency in the allocation of natural resources.