The 2G Scam - Where are we headed?

A loss of INR 1.76 lakh crore to the state exchequer - that is what the CAG (Comptroller and Auditor General of India) has reportedly said in its report on the 2G (Second Generation) spectrum allocation scam. In one of the biggest telecom scams to be borne out of India, the 2008 2G spectrum allocation is a matter of great interest not only for the political class but also for the entire nation. The man in the middle of the controversy, A. Raja, is still putting up a brave front or rather trying hard to do so in the face of some serious criticism from the opposition. Before delving into who is right and who is wrong, let’s just try to understand the 'scam' first.

What Happened?

It all started with the TRAI (the telecom regulatory authority of India) allocating pan-India licences for the 2G spectrum to telecom companies in the year 2008 at a price fixed in 2001, i.e. at throwaway prices of INR 1,651 crore. Just to put things into perspective, the 3G spectrum which came up in 2010 earned exceedingly higher bids. Moreover, the 3G allocation was auction-based as is the standard procedure; whereas the 2G allocation was made on first-come first-serve basis which is contrary to the usual auction of the spectrum. Whatever the motive or the logic was behind the allocation, the companies involved were not complaining. As expected, many of the operators roped in foreign investors post acquiring the licences and made a neat profit on their investment.

The Allegations

The primary allegation is that the government gave away scarce spectrum to companies at throwaway prices and in a completely flawed process. It was only the intervention and scrutiny by various bodies, including the Central Vigilance Commission (CVC) and the Central Bureau of Investigation (CBI) that brought to light the 2G spectrum allocation issue. A Public Interest Litigation was filed alleging criminal conspiracy between certain public servants and private persons. In November 2010, The CAG submitted its report to the centre. The report reportedly claimed that the Ministry of Telecom took arbitrary decisions while allotting 2G spectrum ignoring the advice of the Union Finance and Law Ministries. Besides, it accuses the ministry of selling 122 new 2G licences in 2008 at 2001 prices.

It happens only in India

Supreme Court, in its latest hearing, ridiculed the government by asking how can the minister accused of fraud still hold on to the ministry. Congress, on its part, has been backing the tainted minister all the way even going to the extent of stating allegations against A.Raja as false in the Supreme Court. If you are wondering why A.Raja is the blue-eyed boy of the government you don’t have to think too hard. This is the irony of a coalition government. DMK, of which A.Raja is the member,may just withdraw its support from the government in case Raja is ousted. So far it is absolutely disheartening to see how the government has handled the whole situation. The government has left no stone unturned in trying to put a lid on the controversy, the scam is of such huge proportions that even whole-hearted efforts by those involved are not paying off.

India has been a developing country from a long time. Have we ever wondered even with growth rates of eight percent and above, when it comes to actual development why are we still in the doldrums? It pains us to think about the nearly 27-percent of Indian population who live below the poverty line, the country’s pathetic healthcare system (with only 1.1 beds available per 1,000 citizens), deplorable infrastructure and many other things that are not even worth discussing. Add to the already hopeless situation, a loss of INR 1.70 lakh crore to the state exchequer because of a few irresponsible and corrupt individuals. Can we really afford this? The answer from a common man/ a true Indian is 'No'. Our politicians, on the other hand, may think otherwise.