The 2G Spectrum allocation case has been one of the most controversial cases in India’s economic and political history.
The case exposed alleged ₹1.76 lakh crore losses in telecom license allocation
This led to high-profile resignations, arrests, and a 2012 Supreme Court ruling
The 2G Spectrum allocation case has been one of the most controversial cases in India’s economic and political history. The contentious case centers around the alleged allotment of 122 Unified Access Services (UAS) licenses in 2007 at a first-come, first-serve basis to the telecom companies at 2001 prices. This allocation was carried out under the tenure of then Telecom Minister Andimuthu Raja (DMK) and Kanimozhi Karunanidhi (MP, Lok Sabha) (DMK).
The case gained nationwide attention when Comptroller and Auditor General (CAG) Vinod Rai released a report in November 2010 estimating a presumptive loss of ₹1.76 lakh crore to the government due to the flawed allocation process and labelled A. Raja was the root of conspiracy along with Kanimozhi.
The aftermath of this report stirred the public interest. As per the CAG audit, A. Raja ignored recommendations given by then Prime Minister Manmohan Singh aimed to ensure a fair and transparent allocation process. CBI also alleged A. Raja for deliberately advancing the cut-off date from 1st Oct. 2007 to 25th September 2007 without any public notice that indirectly benefitted specific telecom firms such as Swan Telecom and Unitech Wireless that were deemed ineligible to apply for the spectrum license. Meanwhile, Dr. Subramanian Swamy, then President of Janata Party (later associated with BJP) , submitted a letter to the Prime Minister seeking sanction to prosecute A. Raja under the Prevention of Corruption Act in relation to the 2G spectrum allocation.
In 2009, a telecom operator S-Tel challenged the allocation of the alleged date change through a petition in the Delhi High Court. The court ruled that the advancement of the cut-off date was arbitrary, lacked transparency and violated the principles of fairness and natural justice. Post the court verdict, CBI file an FIR under the provisions of Indian Penal Code and the Prevention of Corruption Act.
The CBI launched a wiretapped telephonic investigation to undermine the role of Corporate Lobbyist Nira Radia and uncover the role of middlemen in the allocation spectrum. The CAG report of 2010 cited that there were large-scale irregularities in spectrum allocation.
Meanwhile, Dr. Swamy, A. Raja, filed a petition in Delhi High Court to seek action on his request and the cause of delay. However, his request was dismissed by the court.
The Directorate General of Income Tax investigated of a probe of firms suspected to have violated the Foreign Exchange Management Act, saying it cannot confirm or deny Raja's involvement.
However, the case took another turn when A. Raja resigned from the position of Telecom Minister in November 2010 after the submission of CAG report on 2G spectrum to the government, stating a presumptive loss of ₹176,000 crore (US$21 billion) to the exchequer. Kapil Sibal was then handed over the charge of the telecom ministry.
During the December 2010 proceedings, A. Raja was criticised by the Supreme Court for ignoring the PM's advice to delay the spectrum allocation after the tapes of telephonic conversion by Radia were presented before the court. The court decides to help a special court and CBI inquiry in this case for further investigation.
In 2011, Dr. Swamy filed further petitions in the Supreme Court to cancel the licenses of all the ineligible firms. Meanwhile Raja, former Telecom Secretary Siddharth Behura and Raja's former personal secretary, R. K. Chandolia, was arrested and sent to Judicial Custody.
The CBI filed a second chargesheet, and Kanimozhi, Sharad Kumar and Karim Morani were summoned and their bail pleas were rejected.
In the landmark judgement of 2012 Supreme Court cancels the 122 licenses issued by Raja and imposes a ₹50 million ($1,018,122) fine on Unitech, Swan and Tata Teleservices and a ₹5 million fine on Loop Telecom Pvt Ltd, S-Tel, Allianz Infratech and Sistema Shyam Tele Services. The court called the allocation arbitrary and a violation of Public Interest.
This judgement helped BJP to ultimately rise in power as they had strong evidences against DMK.
In an interesting turn of events, A. Raja submitted a 112-page written statement to the joint parliamentary committee, stating that he met with P. Chidambaram and Prime Minister Singh several times from November 2007 to July 2008 to inform them of all 2G-related decisions and Singh agreed with him.
The case took a groundbreaking turn when in 2012 under the bench justice of O.P Saini, a special CBI court acquitted all the 17 accused — including A. Raja (then Telecom Minister) and Kanimozhi (DMK MP).
Justice Saini ruled out that no proven evidence against Raja was submitted before the court. Judge Saini stated:
“The prosecution has miserably failed to prove any charge against any of the accused. There is no material on record to show that the accused conspired together.”
The DMK party responded with a nationwide outcry accusing the opposition of a political fallacy. Kanimozhi remarked that this trial was a witch-hunt driven by political propagandas and lies.
CAG Controller Vinod Rai who was once hailed for being the whistle-blower in this case was criticised for tarnishing the global image of the Indian telecom industry with his presumptive loss theory without any factual evidence. He was also condemned for maligning the image of the leaders in question without sufficient grounding.
The real question lies that whether Rai hyped the 2G Spectrum or were the DMK ministers were touted by a political fallacy?
The 2G spectrum case is a multilayered saga involving governance, judiciary , media and political rivalry. The 2G spectrum will remain an inedible part in the history of Indian economy and will time and again debate the question of corruption, evidence, political motivations in a rapidly growing economy like India. [Rh/VP]
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