Author: Supriya Pathak , Delhi Metropolitan Education
INTRODUCTION
A. Raja served as the Minister of Communications and Information Technology for the Congress party from 2007 to 2009. In 2008, he implemented a policy that favored certain telecom companies by allocating 122 2G spectrum licenses at a fixed price, which was significantly low. Raja reduced the deadline for applying for 2G spectrum from October 1, 2007, to September 5, 2007, preventing many companies from applying. Additionally, on the day of license issuance (January 10, 2008), he only allowed a few hours for companies to submit their checks and other required documents. The selected companies were prepared with their checks and paperwork. The Indian Comptroller and Auditor General (CAG) reported on November 16, 2010, that Raja ignored the advice of the Law and Finance Ministries.
Charges Against the Former Telecom Minister
Affordable Telecom Licenses
In 2008, the entry fee for 2G spectrum licenses was based on 2001 pricing, despite a significant increase in mobile subscribers from 4 million in 2001 to 350 million in 2008.
Procedural Irregularities
Raja amended the rules before the launch of the 2G spectrum.
The application deadline was shortened by 25 days.
Licenses were granted at a fixed cost.
An improper auction process was used.
Raja disregarded the recommendations of the Finance, Law, and TRAI ministries.
TRAI advised auctioning the spectrum at market rates.
Key Individuals and Entities Charged in the 2G Scam
The Central Bureau of Investigation (CBI) charged 12 individuals and organizations in connection with the 2G scam, including Raja, his personal secretary R.K. Chandolia, former telecom secretary Siddharth Behura, and former MD of Swan Telecom Shahid Usman Balwa. The charge sheet, finalized under the supervision of Special Judge O.P. Saini, names Reliance Telecom, Swan Telecom, and Unitech Wireless as companies that benefited from Raja’s preferential treatment in spectrum distribution. Other individuals charged include Vinod Goenka (Swan executive), Sanjay Chandra (Unitech MD), and Reliance Anil Dhirubhai Ambani Group (ADAG) executives Gautam Doshi, Surendra Pipara, and Hari Nair.
The accused faced charges of criminal conspiracy, fraud, forgery, and violations under the Anti-Corruption Act. Raja, Chandolia, and Behura were also charged with abusing their positions of authority. The CBI detailed how Raja, upon becoming telecom chief in May 2007, positioned Chandolia and Behura to facilitate criminal collusion. Raja allegedly manipulated the process to grant UAS licenses to favored companies like Swan Telecom and Unitech, ignoring established protocols and recommendations from TRAI.
Despite legal advice against it, Raja pushed forward with cutoff dates and policies that favored certain companies, denying spectrum access to others like Tata Teleservices and Spice Communications. The charge sheet noted that Raja’s actions led to a loss of Rs 30,984 crore to the state exchequer.
In November 2007, the Hon’ble Prime Minister expressed concerns about the need to reassess the spectrum pricing strategy due to the high demand for licenses and limited spectrum availability. Despite this, Raja justified the allocation of spectrum to a few new operators without updating the entry fee from 2001, against the Prime Minister’s advice. The verification process for UAS license applications lacked diligence, transparency, and fairness, resulting in the issuance of licenses to ineligible companies that provided false information and fake documents.
Court Verdict
The court’s decision did not overturn the Supreme Court judgment that the licenses issued during the 2G spectrum allocation were illegal. Special Judge O.P. Saini stated that the charges were based on misunderstandings, selective readings, and irrelevant interpretations of official records. The prosecution’s case relied on oral statements made by witnesses during the investigation, which were not corroborated in court. The judge concluded that the prosecution failed to prove any charges against the accused, declaring that the charges had not been demonstrated against any of the accused.
Conclusion
Nearly six years after the Supreme Court canceled 122 2G licenses, a Special Court on Thursday acquitted all the accused, including former Telecom Minister A. Raja and DMK leader M. Karunanidhi’s daughter, Kanimozhi. The court ruled that the prosecution had “miserably failed” to prove any charges against the accused. The verdict highlighted that there was no evidence on record to show any wrongdoing by the accused in relation to the cutoff date or the first-come-first-served policy. The judge concluded that the prosecution had failed to demonstrate any charges against the accused.
FAQ on the 2G Spectrum Case Involving Former Telecom Minister A. Raja
What was the 2G case?
The 2G scam involved the allocation of 122 licenses for 2G spectrum to telecom companies at significantly low prices, resulting in a massive financial loss to the Indian exchequer. The licenses were allocated during the tenure of A. Raja, the then Minister of Communications and Information Technology, in 2008.
Who was A. Raja, and what was his role?
A. Raja was the Minister of Communications and Information Technology from 2007 to 2009. He was accused of manipulating the 2G spectrum allocation process to favor certain telecom companies, ignoring established procedures, and causing substantial financial losses to the government.
What were the main charges against Raja?
The charges included:
Allocating 2G spectrum licenses at prices based on 2001 levels despite a significant increase in the subscriber base.
Changing the rules and reducing the application deadline.
Issuing licenses on a fixed-price basis without a proper auction process.
Ignoring the advice of TRAI, the Law Ministry, and the Finance Ministry.
Favoring specific companies by manipulating the application process and deadlines.
What were the consequences of the 2G spectrum allocation?
The allocation process led to a significant loss to the Indian government, estimated by the Comptroller and Auditor General (CAG) of India to be around Rs. 1.76 lakh crore. It also caused a major public and political uproar, leading to multiple investigations and legal proceedings.
