SOS e Clarion Of Dalit

November 27, 2016

Mr. Modi – Big Generators of Black Money

Filed under: dalit human rights — Nagaraja M R @ 8:18 am

S.O.S   e – Clarion  Of  Dalit  –  Weekly  Newspaper  On  Web 

Working  For  The  Rights  &  Survival  Of  The Oppressed

Editor: NAGARAJA.M.R… VOL.10 issue.48…… . 07 / 12 / 2016

Editorial :  Mr. Modi  – Big Generators of Black Money

Mr.Modi  since decades  black money is generated by corporate crimes , illegal trading & Real estate deals.  This  is  also feeding terrorists , anti nationals & mafia.  We  appreciate your first step in curbing black money.

If you are sincere Why not  curb corporate crimes , illegal commercial  trading  & Real estate deals ?

Read :  https://evoiceofhumanrightswatch.wordpress.com/2016/11/16/mr-modi-corporate-criminals/

Promoters , Controlling share holders of corporations are  big time criminals swindling crores of public money. While it is a herculean task for  common man to get Rs 10000 loan from bank , bank will extract it’s pound of  flesh from him to the last penny. Whereas big criminals easily get crores of rupees bank loan,  default & go scot  free.

  It is with connivance of bank lending managers , bank representatives on the board of companies. Over valuation of project cost , money siphoning by trade with sis ter companies , etc. Bank simply lends them crores of rupees but does not  do anything afterwards to monitor , check  misuse of public funds before becoming bust.

   Governments  are not taking action culprit individuals , promoters , majority share holder , bank representative.  Is not government aiding big criminals & creation of black money ?

   Mr.Modi why  NOT you are  taking action ?

Corporate espionage: Expose those who feed the mouth of corruption

By Sanjay Jha

The case can be a tipping point to expose the huge nefarious nexus between government and India Inc, now a powerful fifth estate.

Shantanu Saikia, one of the principal accused in the unfolding, unravelling  scam called “Corporate Espionage” has made two astounding revelations; one, the scale could peak Rs 10,000 crores, and second, that he has been made to sign blank papers during custodial interrogation. Evidently, this spy-drama has the makings of a murky crime thriller, with several big guns with exorbitant stakes involved. The abrupt, sudden arrest of oil ministry officials, a trade journalist, an overseas energy adviser and corporate officers of leviathan private sector energy firms such as Reliance Industries, Essar and Cairn Energy for surreptitiously obtaining sensitive leaked documents from the Petroleum ministry blows the lid off what has been otherwise publicly speculated upon; the formidable halo of big business lobbies in India’s dark political corridors. Big business has emerged as a formidable power center in the Indian political and social ecosystem; ambitious, creative, cash-rich, talented but greedy, it’s suspect ways concealed by sophistry. Are we seeing the cracking of the Omerta code, or is this just a public relations eye-wash for self-righteous posturing? Time will tell. A rewind before that is necessary.

In early 2004 I was attending a corporate symposium where CEOs moved about with feline alacrity and everyone seemed to have an unusually sunny disposition. People joked that their refulgent countenance was a mirror image of India Shining, that celebrated phrase of unbridled optimism and electoral doom. In several photo-ops, the high profile head honchos did a collective thumbs-up. When I almost nervously protested that this utopia looked grossly exaggerated as it was based on just one year of eight per cent GDP growth of the NDA government in 2003-04 and a convenient tweak of poverty estimates, I was dismissed with contumacious indifference, as if a gate-crashing party pooper. I beat a hasty retreat, and ever since have a guarded reverence for these five-star CII/FICCI/Assocham event managers which I have since believed are just platforms for the self-promotion and private business lobbying by a select group, the Big Boys. I would like to term them as India’s “obnoxious oligopolies”, the MSME (Micro-Small Medium Enterprises) that they are supposed to benefit, remain at the outskirts. A similar group was in full attendance sometime back at the Gujarat Global Investors Summit. The charade continues with even greater crescendo in FY 2015.

At the same venue over several bi-annual events, several heads of their respective conglomerates, publicly adulated the bearded, beaming Gujarat chief minister Narendra Modi. They looked like smitten by the first flush of love as they serenaded Modi, adding that they would like to see the poster-boy of the saffron party in a galloping hurry unfurl the Indian tricolours at the Red Fort. Of course, they pretended to be blissfully unaware or conveniently forgot that their prime ministerial designate had the dubious ignominy of not being able to shake hands with US President Barack Obama in the White House, as the US state department had refused to grant Modi a US visa for human rights violations apropos the Gujarat riots and after; for a dastardly sequence of events that he perhaps endorsed or deliberately ignored in Gujarat in 2002 as its elected head (that matter is sub-judice despite the clamorous call that Modi has received a clean chit. Of course now, Modi calls President Obama “Barack”). We could well imagine the geopolitical ramifications of that embargo, but obviously India’s leading corporate chiefs did not. The perceptible bonhomie between our Big Boys and Modi is a manifestation of the blinkered vision of India Inc. It also reflects short-term memory loss as they forget that a seething Modi had asked the CII to publicly apologise for social activist and ex-Thermax chairperson Anu Agha’s condemnation of the Gujarat “genocide”. Tragically, CII catapulted before him instantly. Now that Modi is prime minister, the subjugation, subservience and surrender is reaching new lows. Every other day, a leading industrial magnate appears like an epitome of obsequiousness.

India’ s corporate sector has unfortunately a very convenient moral fibre, which is also unusually elastic. They are creatures of extraordinary accommodation. I remember when the erstwhile PM Dr Manmohan Singh’s government took over in 2004 there was a drastic collapse of the stock markets. Bust! Those black-suited merchant bankers and the 20-something bespectacled analysts predicted serious doomsday, a black hole if you will, what with a centrist national party in a fragile coalition supported by withering age-old Marxists on the wrong side of India’s demographic median. Of course, their crystal-gazing were based on facile factors; no one even briefly comprehended the huge premium the think tank of the Singh-P Chidambaram-Dr Montek Singh Ahluwalia  combine could bring to India’s economy and its financial markets.

Corporate India, still angry that India Shining, had been grievously derailed by the rural voxpopuli was almost dismissive about the ruling combine’s expertise, competence and longevity. Understandable perhaps, but what was indeed surprisingly palpable was the cosmetic assessment of India’s real issues of poverty, the common man’s dire straits, the onerous burden of improving education, health and removing backwardness, and the challenge of inclusive growth. Our award-winning blue-chip brigade only understands corporate tax, exchange rates, prime lending rates and stock market reforms. Unfortunately, the government has a lot more to do. And one of them is to build an equal opportunities secular foundation and a vibrant civil society, something that Modi has long forsaken. The draconian conduct of Modi government over Greenpeace activist Priya Pillai, or its recalcitrance to criticism, the hounding of Teesta Setalvad, do not augur well for India. But India Inc seems remarkably oblivious to the larger debate of democracy in India. All that matters is that quarterly earnings report and the fat dividend check pay-out.

“Instead of redressing the balance between the poor and the rich, between the disconnected and the well connected, between the powerless and the powerful, the India state, despite all of its socialist rhetoric, often ends up discriminating against the former and in favor of the latter. The government, despite the best intentions of some dedicated officials, has the bicyclist’s mentality of bowing on top and kicking below”, said RBI governor Raghuram Rajan in his book Faultlines. He hit the nail on the head. No wonder, rising inequality remains our most intractable challenge.

Thus, for the Ivy League corporate India, Satyam arrived with blaring horns as a deadly neutraliser. Suddenly that pious façade and casual bravado stood shattered. Satyam was not just an epic corporate fraud by itself, it also had a strong principal cast which included multinational auditors, ritzy merchant bankers, Harvard gurus on shareholder protection, and independent directors who made more money from sitting fees or should we call it “sleeping fees”. The supporting crew was endless and each had their own private agenda. As the Satyam saga unfolded, several leading CEOs were fully aware of that “discretionary element” which is usually co-handled with remarkable dexterity by the prized auditors and the senior management in close cohorts. Insider trading allegations rage because they are true, so before we have more corporate chiefs expressing their political preferences, maybe they should get their boardroom act cleaned up. Rajat Gupta of McKinsey got caught, in India, no one does.

Narendra Modi’s pogrom which consumed more than thousands of innocent lives is essentially a meaningless statistic for India’s business czars. As long as Modi can unlock free land, provide subsidised capital, take unilateral decisions devoid of environmental implications or physical displacement caused by them, and make big commercial announcements, everything is kosher. For them a Singur or Nandigram is a social backlash only for the political class to handle. From a hardcore shareholder standpoint, India Inc are bang-on target. If Modi is attracting foreign capital and domestic investment, by all means, he can be development-driven. However to have championed his name for national leadership revealed either a shocking neglect of social sensitivities or a callous disregard for political morality. The fact that Modi has become a PM does nothing to take away the enormous historical baggage that he transports on his shoulders. The Love Jihad brand of politics which has been unleashed since May 2014, coupled with Ghar Wapsi and attacks on churches even had President Obama reminisce Mahatma Gandhi with sorrowful nostalgia. But India Inc remained mummified. These CEOs speak in national forums, but whatever their private predilections, they need to understand the larger ramifications of their public disclosures.

Instead, I would like it if our jet-setting CEOs talked of creating an RTI Act for corporate India for PPP’s, or at least for large corporations using public assets, natural resources etc, wherein we can find facts, as ordinary individuals and not just as shareholders. Isn’t it the ultimate paradox that while the GOI has installed transparency by steadfastly adhering to RTI guidelines, the constantly jabbering India Inc only pays it token lip-service, and worse, walks away with Golden Peacocks and other shimmering accolades, to ultimately do a Satyam? Or a Sahara?Or steal documents from the Oil and Petroleum Ministry? What are their various items under contingent liabilities, and the cross funds flow between group entities? How have they benefited by certain vested policy changes which have impacted company health? Are ethical standards followed in an unregulated business lobbying industry? Besides published accounts, how do they indirectly fund political parties? Why was CII against transparency in giving political donations? And why, after over a year of the act being passed, is Modi’s government reluctant to implement the lokpal bill and make CBI independent? No answers as yet.

The corporate espionage case can be a tipping point to expose the huge nefarious nexus between government and India Inc, now a powerful fifth estate. It is only a tip of the iceberg. It is time we exposed the supply-side of corruption. And above all, brought in electoral reforms in corporate funding of political parties.

Corporate espionage is not new to India Inc, say CEOs

Govt depts, banks prone to information leakage

 

By  Dev Chatterjee  &  Ishita Ayan Dutt 

India Inc is not surprised with the corporate espionagescandal now rocking the petroleum ministry, with many chief executive officers (CEOs) saying documents are regularly leaked from the ministries, tax authorities, banks, and regulators – thus giving competitive advantage to corporates with deep pockets.

“This is not the first time that documents are leaking from the petroleum ministry or from other government agencies. Most of the Cabinet note agendas, ministry’s opinions, and government’s stand in the court are regularly leaked to the corporates who make millions on the stock markets,” said a Mumbai-based CEO, on condition of anonymity.  According to another CEO, who also did not wish to be named because of the sensitivity of the matter, documents are also regularly leaked from banks, income-tax authorities, stock exchanges and from public-sector units.

Many large corporates have separate teams to gather information from various sources to get advantage while bidding for projects or for simply making a quick buck in the stock markets.  Corporates are regularly spying on their competitors also. In 2007, Tata Communications filed a complaint against its then managing director’s secretary, who was caught sending board meeting agendas to a rival via email. Barring filing a chargesheet against the employee, Mumbai police failed to crack the case.
ALSO READ: Seven arrested for theft, sale of oil ministry papers

Tata Motors had to exchange several letters with the West Bengal Industrial Development Corporation (WBIDC) to protect its 11 pages of the annexure to its lease agreement, when it wanted to set up a plant in Sanand. The pages had detailed calculation of the incentives offered by the state government to the company to match those provided by Uttarakhand. The calculation would have given competitors an indication of the car’s profitability and market size of Nano.

WBIDC had to assure the company in writing that no third party would have access to the information.

On Thursday, a Reliance Industries (RIL) official was arrested in the corporate espionage scandal. Reacting to the arrest, the Mukesh Ambani-owned firm said it had launched a “robust internal probe” into the detention of one of its employees by the Delhi police in connection with the alleged official document theft in the oil ministry.

RIL, which is among the largest private-sector players in the Indian oil & gas sector, is also fighting a pitched battle with the oil ministry over allegations of gold-plating its D6 gas blocks off the Andhra Coast and producing less gas than what was promised to the government.

The company also made news when in 2013, the Supreme Court ordered probe into allegations based on Niira Radia leaked tapes that the then oil regulator, Directorate General of Hydrocarbons V K Sibal, favoured RIL in many ways. These charges were not proved.  However, the tapes revealed how corporate lobbyists were taking out information from the Indian government based on their contacts with the media and top officials.

During the gas wars between the Ambani brothers, a lot of sensitive documents made its way into the media. The documents included action planned by the Reserve Bank of India, the Securities and Exchange Board of India, and even international regulators. “Most of the these documents are highly-confidential. This just shows how well-oiled the information collection machinery is,” said an official with a large corporate.

Citing an example, a source said that during the discussion of a contentious deal in the oil & gas sector, divergent views were exchanged between petroleum and law ministries in a Cabinet Committee on Economic Affairs meeting. The minutes were leaked to the company in question. It helped the company identify the people in favour of and against the deal. Subsequently, the ministry in favour of the deal was supplied with more information in support of the deal, while that against it was not only provided with documents stating the benefits of the deal, but also given details of the poor track record of public-sector companies operating in the sector. It ultimately led to a war of white papers.

Many Indian companies are now taking steps to prevent themselves from becoming victims of espionage. This includes setting up the top management’s offices away from the regular employees, access control offices and, if need be, keeping board meetings in secret locations.

Corporate Espionage Case: Companies Paid Rs. 2.5 Lakh Per Month to Obtain Stolen Documents, Says Delhi Police

A “handsome monthly amount” was paid by the arrested corporate executives to those “hired” for obtaining the “stolen documents” from the Ministry of Petroleum and Natural Gas (MoPNG), Delhi Police said in its charge sheet submitted to a Delhi court in the documents leak case.

An amount to the tune of Rs. 2.5 lakhs per month was being paid to the two accused, Lalta Prasad and Rakesh Kumar, who were the first to be arrested outside Shastri Bhavan in New Delhi, it said.
Shailesh Saxena from Reliance Industries Limited (RIL), Vinay Kumar from Essar, KK Naik from Cairns India, Subhash Chandra from Jubilant Energy, and Rishi Anand from Reliance Anil Dhirubhai Ambani Group (Reliance ADAG), energy consultant Prayas Jain, and journalist Shantanu Saikia used to pay the amount to them, the charge sheet said.

“On sustained interrogation, they all admitted that they had hired the services of Rakesh Kumar and Lalta Prasad for obtaining the stolen documents of MoPNG for their business gains,” it said.

The Crime Branch of the Delhi Police also did not rule out the possibility of slapping the charges under the Officials Secret Act (OSA) saying that reports pertaining to all the documents have not been received yet from the MoPNG and they have sought further clarifications from the ministry about it.

“The reports received on April 10, April 15, and April 16, 2015 from MoPNG have been analyzed and it has been observed that reports pertaining to all the documents have not been received.

“Further, it has also not been specified as to the documents marked as secret/confidential are covered under OSA or not. Further clarification in this regard is being sought from MoPNG,” Delhi police said in its charge sheet filed against 13 arrested accused.

On Monday Chief Metropolitan Magistrate Sanjay Khanagwal took cognizance of the charge sheet and fixed the matter for further hearing on May 18.

Police said according to ministry reports, documents recovered from the accused were not in public domain and some of them were marked as “secret/confidential in nature.”

It also said that due to the conspiracy hatched by the accused, “interests of the government and public at large have been compromised. The accused have been indulging in this cheating affecting public/national interest for many years.”

Investigation regarding the role of senior officers and companies was in progress to ascertain their involvement, if any, it said, adding a supplementary charge sheet would be filed later.

Detailing the money transactions, police said that “analysis of bank statements of Lalta Prasad and Rakesh Kumar revealed that there were significant transactions by cash and cheques despite the fact that they were unemployed.”

“The money tranactions in their accounts shows that they have procured that money by illegally selling the documents of MoPNG to various prospective buyers of the companies engaged in Petroleum and Gas sector.

“Assistance from chartered accountants has been sought to further analyze the detailed bank statements of the accused persons/companies. Outcome of which will be filed through the supplementary charge sheet,” it said.

With regard to the documents being allegedly recovered from the possession of the accused people, it said that 80 sets of documents pertaining to MoPNG were seized from Mr Saikia’s house and office while 50 sets of documents were seized from Mr Saxena’s office.

It said seven sets of documents were seized from Mr Jain’s office while four sets and nine sets of documents were seized from the offices of Vinay Kumar and KK Naik respectively.

Similarly, four and six sets of documents were recovered from Rishi Anand and Subhash Chandra respectively. Some of the other arrested accused were also found in possession of certain incriminating documents.

Most of the documents recovered from Mr Jain were not in public domain and six of these documents were marked secret /confidential, it said, adding, 23 documents seized from Mr Saikia were also marked as secret/confidential.

Similarly, two documents recovered from Mr Naik were marked secret whereas documents seized from Vinay, Anand and Mr Chandra were not marked as “secret/confidential”.

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Mobile phones, laptops / computers, and backup of e-mail account data of senior officials of Cairn India, RIL, Reliance ADAG, Jubilant Energy Pvt Ltd and Essar were taken into possession for examination and forensic opinion and result was awaited, police said.

“The back up data of e-mail accounts is being analysed. Investigation into the role of the senior officers and companies is in process. The data is voluminous in nature and painstaking efforts are being made to expedite the analysis,” it said.

It also said call detail records (CDR) of accused showed that they were in constant touch with each other over phone.

“Moreover, it is pertinent to mention that CDR analysis reveals that on many occasions the position of the accused was found to be in cell ID of MoPNG even during odd hours at night when they used to criminally trespass and steal the documents,” the charge sheet said.

Referring to the ministry report, police said none of the documents recovered from the possession of Lalta Prasad was in public domain and two sets of documents were marked as secret CCEA note.

It said Mr Prasad, Rakesh Kumar and accused Raj Kumar Chaubey were not authorised to possess the documents recovered from their possession.

Police said Mr Prasad and Rakesh Kumar with connivance of co-accused Asharam, Ishwar Singh and Virender Kumar had obtained fake temporary I-card/pass of Audit Department defence service and MHA for gaining access to MoPNG and they had also got prepared duplicate keys of the offices.

Police said the accused had “lured” one Mr Vir Singh, who was a CCTV operator in the MoPNG, to switch off the cameras installed in the ministry to facilitate their movement in the office during night.

It said that the outcome of the probe regarding the alleged role of Mr Singh may be filed through supplementary charge sheet.

Police said a “deep rooted conspiracy” was hatched among the accused and the five corporate executives, Mr Jain and Mr Saikia were also the “perpetrators and conspirators” and they had provided the financial aid for carrying out the illegal activities.

It said ministry reports have been enclosed with the charge sheet in a sealed cover and its confidentiality should be kept.

All the accused have been chargesheeted for the alleged offences under sections 457 (trespass), 380 (theft), 411 (dishonestly receiving stolen property), 418 (cheating a person whose interest the offender was bound to protect), 420 (cheating), 468 (forgery for the purpose of cheating), 471 (using as genuine forged documents), 474 (possessing forged documents with intent to use it as genuine), 34 (common intention), read with 120-B (criminal conspiracy) of the IPC.

All the accused are currently in judicial custody.

On February 20, police had arrested the five corporate executives alleging that they used to procure the classified documents from Lalta Prasad and Rakesh Kumar and used to pay them.

The documents were then supplied to the firms by these officials for their benefit, the police had alleged.

The police had earlier told the court that sensitive documents of Ministries of Coal, Power and others were recovered during the investigation.

In its FIR, the police had said that photocopies of sensitive documents including inputs on the Finance Minister’s budget speech were recovered from the possession of accused Rakesh Kumar.

A total of 16 people have been arrested so far in connection with two separate FIRs lodged by the Crime Branch.

2G scam, Spectrum refarming, Sistema controversy, Allocation of Natural Resources explained

  1. What is Spectrum?
  2. Method #1: First come First Serve basis
  3. Method#2: Auctioning method
  4. What happened in 2G scam?
  5. A.Raja (Telecom Ministry)
  6. CAG estimate: 1.7 lakh crore loss
  7. Supreme Court verdict
  8. Presidential reference on SC verdict
  9. Impact of SC verdict
  10. Sistema – Russia Angle
  11. Spectrum Refarming

What is Spectrum?

  • Whenever you watch TV, receive phone call, send SMS, surf internet….data is being transferred from one place to another, say Ahmedabad to Mumbai.
  • So, If data was a “truck”, how would you transport it from A’bad to Mumbai (or vice versa)?
  • Obviously via highway.
  • Spectrum is that highway.

Based on the ‘width’ of the highways, we classify them into following

Spectrum range
CABLE TV 145-860MHZ
2G 800-1900MHz
3G 2100MHz
4G, broadband internet 2300MHz

(^numbers for illustration only. Different websites will give different numbers.)
satellite communication

  • So, We first send the truck from A’bad to a Satellite hovering in the sky, and from there, send the truck to Mumbai.
  • Problem: satellite=expensive. Private Player(Businessman) cannot afford it.
  • Solution: Government launches the satellite using ISRO. Thus the highway (spectrum), is created. Then Government will charge money to whoever(cellphone company) uses this highway (spectrum).
  • You’re a businessman, you want to launch your own mobile service (like Vodafone, Airtel etc). Therefore you’re interested in using this 2G highway, to transport your trucks (data). You can also use 3G or 4G, which provide faster data transfer, but they’re more expensive.

New Problem: to access this 2G highway, you need two things

PROBLEM (BUSINESSMAN’S SIDE) SOLUTION
  1. Driver’s License (to operate the truck)
Apply to Department of Telecom.
  1. Pay rent/toll for using this highway (spectrum). Just like you pay for using Bandra-Worli sea-link or Yamuna Expressway.
Get loan from SBI.Pay the money to Government. Or even better, bribe minister so they give free spectrum.

Highways have fixed capacity. So Government cannot give license to 500000 truck-drivers else, it’ll create traffic jam. So, From Government’s side what should be the “ideal” solution?

  1. Check the application of driver: does he have previous experience of running telecom business? and more importantly his class 10,12 and college marksheets and school leaving certificate.
  2. After verifying his record, Sell the access to this highway (Spectrum).

Another problem: how should Government sell access to this Highway (Spectrum)?
Ans. Two methods, 1) first come first serve 2) Auction.
Both have their advantages and problems.

Method #1: First come First Serve basis

  • You already know how cinema tickets are sold. The person who is first in the line, gets the ticket. If You come late, you don’t get the ticket.
  • This also leads to ticket black-marketeering, for example, I come early, buy all the tickets. You come late, all the tickets are sold, I offer mytickets to you @higher price and make huge profit.
  • This is not good for economy because I’m making money without producing any new goods/services=inflation.
  • But according to a theory propounded by Mr.Sibbal, this is “zero loss”. Because Cinema hall did receive money for ticket sale. So it’s not like Cinema-hall making losses!

anyways, for common men:

  1. Buying ticket=not crime.
  2. Buying ticket but not watching movie AND selling that ticket to third person @higher price=crime.

Method#2: Auctioning method

  • As the name suggest, Auction the tickets. If person A offers Rs.200 for a seat and Person B offers Rs. 500 for the same seat, then sell the ticket to Person B.
  • From theatre owner (Govt)’s point of view: this method may look good, because now we can earn more money per ticket sold and use that money to finance whatever Development scheme we’ve in our mind.
  • Here is the problem: if Person B was a doctor, and he had to shell out Rs.500 for one movie ticket. Then he may charge more fees from patients @his clinic to keep the profit margin same.
  • So overall effect on economy= may not be good.

What happened in 2G scam?
Recall that you needed two things to run telecom business

  1. Driver’s license
  2. Access to Spectrum (via paying the money to Government)

Government decided that

  1. We will give license by “First come first serve basis”.
  2. To get this license, you’ll have to apply before 1st October 2007 and pay money (Entry Fees) for license.
  3. And whoever gets the license, he will automatically get spectrum for free. So no need to pay separate money for accessing highway(spectrum). This is known as “Spectrum linked with License”.
  4. If we give you the licence (+spectrum), then you’ll have to cover 10 per cent district headquarters within the first year of the allotment (i.e. you start serving customers in that area). This is known as “Roll out Obligation.”

And then, what happened next, is a classic case of cinema ticket black-marketeering.

Swan Telecom(Shahid Balwa)

  • A new company, it had no experience of running telecom business.
  • Yet it applied for license and got it.
  • (officially) SWAN telecom paid about Rs.1,500 crores to Government, as 2G Spectrum License fees.
  • But this company did not open a single outlet/mobile tower. So it didnot meet the “Roll out Obligation”.
  • It simply sold 45% stakes to UAE’s Etisalat for around 6000 crore rupees. Calculate the profit%.
  • Shahid Balwa was arrested in 2011, released on bail, thus proving that he is totally awesome.
  • His argument in the court, “Since Mr Sibal and the PM have both said that there was “no loss” to the government from the allcoation of licenses in 2008, so I’m being wrongly accused of corruption and conspiracy.”

Unitech (Sanjay Chandra)

  • This company didnot have any prior experiance of telecom business.
  • Yet, Applied for license, paid $365 million as licence fee to Government.
  • Did not open any outlet/mobile tower.
  • Then sold 60% stakes to Norway’s Talenor for $1.36 billion= huge profit without doing anything.
  • Thus name of company changes: Unitech+Talenor=Uninor.
  • Recall: bought the ticket, did not watch the movie and sold the ticket to third party @higher price.

A.Raja (Telecom Ministry)

raja-telecom-scam-bail

  • Ignored the advice of PM, Finance Ministry, Law ministry, TRAI etc.
  • TRAI had advice Raja to sell the spectrum via ‘auctioning’.
  • But Raja used “first come first serve basis.”
  • Licenses were sold in 2008 but the price (entry fees) were kept very low @2001’s market rates.
  • Initially the last date to apply for licenses = 1st October 2007. But then Raja changed policy “we’ll give license to only those companies who applied before 25th Sept.” This way later-comers could not get license (and had to buy it from ‘black market’).
  • He allowed ineligible companies to apply and get license (e.g. Unitech)
  • The companies who got license but did not start business (UNITECH and SWAN)…Raja did not take action against them. He should have cancelled their licenses or imposed heavy fines on them.
  • Companies paid him the bribes, he transferred money to bank accounts under his wife’s name in Mauritius and Seychelles.
  • Arrested in 2011, got bail in 2012, came back in parliament, thus proving that he is totally (and that means totally) awesome.

Kanimozhi

  • DMK MP, Daughter of Karunanidhi.
  • Shahid Balwa (SWAN) got benefit because of Raja. So he had to pay the ‘bribe’.
  • He transferred Rs.200 crores to “Kalaignar TV channel”, which is owned by Kanimozhi and her step mom Dayalu Amma and other family members.
  • Arrested in 2011, got bail in 2012, came back in parliament, thus proving that she too, is totally awesome.

Neera Radia