The True Story About 2G Spectrum Case

Introduction

In the year 2010, this well-known scam came to light when “Comptroller & Auditor General of India” also known as CAG in its report against Telecom Minister A. Raja found responsible for a huge loss of Rs 1,76,379 Crore by allotting the licenses of 2G Spectrum at unconsidered prices.

Scam of 2G Spectrum

It was actually a combination of 3 cases, 2 were registered by Central Bureau of Investigation (CBI) and 1 was filed by Enforcement Directorate (ED). As per the popular Time magazine, 2G Scam was positioned as the world’s 2^nd biggest case where the misuse of executive powers was seen.

It was stated in a report prepared by CAG of India that licenses for 2G for mobile networks were issued at the careless prices instead of ethical and fair auction policy.

1. Raja, who was the Telecom minister, had denied all the imputations imposed on him by stating that all the decisions were made under the knowledge of PM Manmohan Singh. In the year 2011, A. Raja was apprehended on the allegations of conspiracy, fraud and cheating.

Quick Timeline Of Related Events Of Scam

• October, 2009 – Central Bureau of Investigation registered a case in allotment of 2G Spectrum.
• May, 2010 – Centre for Public Interest Litigation moves to Delhi High Court for seeking the involvement of CBI into this case.
• October, 2010 – Honorable Supreme Court of India asked the government to reply on the report prepared by Comptroller and Auditor General (CAG).
• November, 2010 – Comptroller and Auditor General pegs loss to exchequer of Rs 1, 76,000 Crores.
• November, 2010 – Resignation of A. Raja from the Ministry of Communications & Information Technology
• December, 2010 – Honorable Supreme Court ordered to setting up of special court to look over in this scam.
• February, 2011 – Detainment of A. Raja
• April, 2011 – Charge sheet filed by Central Bureau of Investigation (CBI)
• October, 2011 – Charges by Special CBI against 17 culprits which also involve A. Raja.
• November, 2011 – Beginning of trial
• November, 2011 – Bail granted to 5 corporate people by Supreme Court
• December, 2011 – Third charge sheet by CBI
• February, 2012 – Cancellation of 122 licenses which were issued in the year 2008 by Supreme Court
• May, 2012 – Bail granted to A. Raja
• May, 2012 – Charges imposed against the promoters of Essar & Loop but later got bailed.
• April, 2014 – Charge sheet by Enforcement Directorate against Kanimozhi & A Raja with others.
• October, 2014 – Charges of money laundering against Kanimozhi, A Raja and others
• November, 2014 – Beginning of trial in a money laundering case
• December, 2017 – 21/12/2017, Judgment Day of the case
• December 21 – A Raja, Kanimozhi and all others related to this case were absolved.

Advocate Vijay Aggarwal

Vijay Aggarwal Advocate defended the promoters Shahid Usman Balwa and Vinod Goenka of Swan Telecom in this case. As witnesses, both Tina Ambani & Anil Ambani also appeared. Mr. Aggarwal, lawyer of Swan Telecom promoters stated that the prosecution has failed to prove any of its imposed charges and eventually all related offenders were acquitted.

Involvement of Corporations

Some of the companies which were named in the charge sheet filed by CBI –

Unitech Wireless

This company was charged with the allegations such as forgery (Sections 468 and 471), cheating (Section 420) & conspiracy (Section 120-B).

On 21-12-2017, the company was acquitted by Special CBI Court from any wrong doing. 

Reliance Telecom

This company was charged with the allegations such as cheating (Section 420) & conspiracy (section 120-B). Alleged for breach of trust by a public servant but in the year 2017, December, it a got clean chit from any guilt.

Swan Telecom

The company charged with criminal conspiracy (Section 120-B) & cheating (Section 420). On 21-12-2017, Special Court of CBI released the company from all the charges imposed of any misconduct.

There were some other companies too named in the charge sheet – 

• Essar Group (corporate parent of Essar Tele Holding)
• Essar Tele Holding
• Loop Mobile India
• Loop Telecom 

Involvement of Politicians

• Raja – DMK (Dravida Munnetra Kazhagam) Ex Member of Parliament, Union Minister of State for Rural Development (1999), Health and Family Welfare (2003), Communication and Information Technology (2007 and 2009), Former Union Cabinet Minister for Environment and Forests (2004).
• K. Kanimozhi – She is a daughter of Late DMK (Dravida Munnetra Kazhagam) Ex Member of Parliament M. Karunanidhi, 5 times Chief Minister of Tamil Nadu. 

Involvement of Bureaucrats

• RK Chandolia – He was the private secretary of A. Raja during the allocation of licenses (acquitted).
• Siddharth Behura – He was the telecom secretary when licenses were conceded (acquitted).

Involvement of Executives

• Karim Morani – A corporate promoter and director in Cineyug Films (Acquitted)
• Kiran Khaitan – A corporate promoter in Loop Telecom (Acquitted)
• Ishwari Prasad Khaitan – A corporate promoter in Loop Telecom (Acquitted)
• Vikas Saraf – Director in Essar Group (Strategy & Planning Department) (Acquitted)
• Anshuman Ruia ­ – Director in Essar Group (Acquitted)
• Ravi Ruia – Essar Group, Vice Chairmen (Acquitted)
• Sharath Kumar – Managing Director in Kalaignar Television (Acquitted)
• Rajiv Agarwal ­­- Director at Kusegaon Fruits & Vegetables (Acquitted)
• Asif Balwa – Director at Kusegaon Fruits and Vegetables (acquitted)
• Shahid Balwa – A corporate promoter at Swan Telecom & DB Realty (acquitted)
• Vinod Goenka – Managing Director at Swan Telecom & DB Realty (acquitted)
• Surendra Pipara – Senior Vice-President at Reliance Anil Dhirubhai Ambani Group (acquitted)
• Hari Nair – Senior Vice-President at Reliance Anil Dhirubhai Ambani Group (acquitted)
• Gautam Doshi – Managing Director at Reliance Anil Dhirubhai Ambani Group (acquitted)
• Sanjay Chandra – Former Managing Director at Unitech Wireless (acquitted)
• Umashankar – Acquitted

VERDICT

Finally, on 21/12/2017, Special Court of CBI which was just formed for this high-voltage case acquitted all the lawbreakers from 2G spectrum scam of 2008. The court found that all the allegations were just speculation and prosecution failed to show the charges. Hence, all the alleged persons were acquitted from the case. However, this verdict by court doesn’t overrule the decision of Supreme Court or change the matter of fact that licenses allotted during 2G spectrum issuance were illegal.