The 2G spectrum scandal is straining to have a boomerang effect 바카라 the BJP is likely to pay the ultimate price for the 바카라scam바카라 that brought it to power.
The trial by media and judicial decisions following the cry of the Comptroller and Auditor General (CAG) has a huge financial burden still breaking on the economy. The figure could be as high as Rs 8 lakh crore 바카라 much higher than what the notional loss projected in the 2G spectrum scandal.
A special CBI court acquitted all accused of charges in the 바카라2G scam바카라 holding that the prosecution failed to prove those charges.
While doing so, the judge has noted, 바카라Nonunderstanding of issues in proper perspective led to a suspicion of grave wrongdoing, where there was none, at least as per record of the Court.바카라
The 2G spectrum scandal broke following a CAG report of perceived or 바카라notional바카라 loss of Rs 1.76 lakh crore. It used three ways to calculate that the then UPA government had auctioned off telecom spectrum for a much lower price.
The media played up the report for several months and led to an 바카라anti-corruption바카라 mood in the country. BJP and other political outfits used the CAG report to create political capital that has brought it to power. Anti-corruption, along with other issues of corruption, inefficiency and inflation under the Congress-led UPA government, was the main plank that brought the Narendra Modi government to power.
BJP lawmaker, Subramanium Swamy, took the 2G scandal investigation to the Supreme Court asking it to monitor the probe leading to observations by the apex court that the CBI was acting as a 바카라caged parrot바카라 of the then UPA-led government.
Elaborating on the impact of not understanding of any wrongdoing, the judgement records, 바카라This factor greatly contributed to the controversy in the instant case as the DoT could neither effectively communicate the issues to others nor others could understand the same. The issues got snowballed when media reports started appearing.바카라
One media report is mentioned in the judgement, titled 바카라Jarring Call: Grabbing precious spectrum for a song.바카라 The news report had claimed that the ministry had not accepted the DoT and Telecom Regulatory Authority of India바카라s recommendation to auction the spectrum. The news report claimed that it had led to a Rs 10,000 crore loss.
The judge points out that the DoT had pointed out that this report was factually incorrect but 바카라nobody believed the version of DoT and a huge scam was seen by everyone where there was none. These factors compelled people to conjecture about a big scam. Thus, some people created a scam by artfully arranging a few selected facts and exaggerating things beyond recognition to astronomical levels.바카라
The hype had a great impact on the way that the Department of Telecommunications (DoT) functions. Insiders say that the DoT became extremely cautious and almost all decisions were made in line with public and court opinion coupled with a fear of the CBI misreading any moves.
The impact fell on the telecom industry that was doing quite well. From soaring profits, the telecom companies 바카라 many of which have since shut down or disbanded 바카라 are now indebted to the public exchequer and banks by around Rs 8 lakh crore. Of this, Rs 3 lakh crore is in deferred license fee and the rest to banks for both loans and the interest.
바카라Look at the 2007 written recommendations of Nripendra Mishra. In several places, he wrote that licenses to new operators, such as Unitech, should be given at same price as other operators. That바카라s what Raja did,바카라 points out an expert. 바카라Surely, someone took money and it resulted in a scam but the industry has paid a price.바카라
The Rs 1.75 lakh crore of perceived loss is based on a document between the TRAI and DoT, four years after the allocation was made. This means that the audit was based on a principle that was set four years after the allocation had been made.
The audit was also based on the price of a different band of spectrum and the principle was applied in retrospect.
There is a heavy price that the telecom consumer ultimately paid, along with the service providers. The 3G spectrum was sold for Rs 75,000-80,000 crore, which has now inflated into lakhs of crore due to the rate of interest. The consumer also paid a much higher price for using 3G services. The reason is that the government in 2010 was especially cautious after being blamed in 2007-08 for causing a loss during the 2G spectral allocation.
Once 4G was launched, competition has pushed all service providers to buy and provide 4G at a much lower cost. This is while they still owe the banks and the public exchequer lakhs of crore of rupees in debts for buying 3G spectrum and licenses. Therefore, recovery of the investment in 3G will be near impossible.
Some of the telecom companies have shut down since but the burden of loss remains. Failure to pay up the loans will end up in more non-performing assets (NPAs).
Eventually, the economy is likely to suffer a real (and not notional) loss, swallowing up any vestiges of growth that surface. The blame will automatically fall on the government of the day 바카라 one that was formed on the 2G scandal, bringing it full circle with optics helping little to clean up the mess.
