According To Comptroller and Auditor General(CAG) 2G licenses issued to private telecom players at throwaway prices in 2008 2G spectrum allocation had caused revenue loss of 1.76 lakh crore Rules and procedures flouted while issuing licenses
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Spectrum allocated beyond contracted quantity to 9 firms including Bharti, Vodafone, Idea, BSNL, Reliance, Aircel Idea and Spice not given spectrum on grounds of proposed merger- this was against the rules Allocation of 2G spectrum led to loss of Rs. 1.76 lakh crore DoT did not follow its own practise of first-come-first-serve in letter and spirit Calculation of loss based on 3G auction earlier this year Cut-off date for license letters advanced arbitrarily by a week This went against time-tested procedures of government functioning Entire process lacked transparency Undertaken in arbitrary and inequitable manner
NO PROCEDURES FOLLOWED Rules changed after the game had begun Cut-off date for applications advanced by a week
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Licenses issued on a first-come-first-served basis No proper auction process followed, no bids invited Raja ignored advice of TRAI, Law Ministry, Finance Ministry TRAI had recommended auctioning of spectrum at market rates
FAVOURITISM, CORPORATES ENCASH PREMIUM Unitech, Swan Telecom got licenses without any prior telecom experience. Swan Telecom given license even though it did not meet eligibility criteria
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Swan got license for 1537 crore, sold 45% stake to Etisalat for 4200 crore. Unitech Wireless got license for 1661 crore, sold 67.25% stake for 6200 crore. All nine companies paid DoT only 10,772 crore for 2G licences
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