2G Scam: The fire that burned the "innocent"

The most awaited 2G scam verdict is finally out! On Thursday 21st Dec'17, a special court acquitted all accused in the 2G spectrum allocation scam, one of the most talked about scams in India.

What was the 2G scam actually?

India is divided into 22 telecommunications zones, with 281 zonal licenses. In 2008, 122 new second-generation 2G Unified Access Service (UAS) licenses were granted to telecom companies on a first-come, first-served basis at the 2001 price. According to the CBI charge sheet and Comptroller and Auditor General of India (CAG) audit, several laws were violated and bribes were paid to favour certain firms in granting 2G spectrum licenses incurring a loss of 1.76 lakh crores INR. Although former Prime Minister Manmohan Singh advised the former Telecom minister A Raja to allot 2G spectrum transparently and revise the license fee in a November 2007 letter, Raja rejected many of Singh's recommendations. Ineligible corporations like Swan Telecom and Unitech Wireless were granted licenses worth billions. Later these companies sold 45% and 60% shares gaining profits of around 30 billion INR.

In 2009, charges were filed by the CBI and the Directorate General of Income Tax Investigation in the Special CBI Court against several high profile politicians and bureaucrats like A. Raja, M.K. Kanimozhi, Siddharth Behura, R.K. Chandolia alongside executives of Swan Telecom, Unitech Wireless, Reliance Telecom, Loop Telecom, Loop Mobile India, Essar Tele Holding, Essar Group.

In 2012 Supreme court cancelled 122 licences granted during A Raja’s tenure and directed auctioning of licences in 4 months.

2017 Verdict

On 21st December'17 the special court led by justice Saini acquitted all the accused due to insufficient evidence which came as a shock for the whole country.

In his 1,552-page judgment, 2G judge Saini talks about how he waited for around 7 years from 10am to 5pm everyday – with a special emphasis on “summer vacation” – for someone to approach his court with legally tenable evidence, but to no avail. However, legal experts like Prashant Bhushan have questioned the quality of the verdict.

It took 2G special court judge OP Saini about seven years and more than 1,500 pages to conclude that there was not a single piece of “legally admissible evidence” against any of the 17 accused in what was touted as one of India's biggest scams. While cancelling the telecom licences in 2012, the Supreme Court had fined three companies of Rs.5 crore each, and five others of Rs 5 lakh each, for earning the benefits of the “wholly arbitrary and unconstitutional action” in grant of 2G licenses. But now with the verdict that there was no scam and no illegality, the companies involved could demand a refund, along with interest on account of loss of reputation.

Suparna Bhat, FYBA