Biggest scam in the history of independent India
Request to bloggers (Mutiny, National Interest, etc)
Please write at least one post about this ! It is in the “National Interest” to protect the scarcest of national resources. Is it not ?
The title is not mine.
Facts that have recently come to light indicate that the telecom spectrum scam is the biggest financial scandal in the history of Independent India, involving an amount not less than Rs 50,000 crore and possibly as high as Rs 1,00,000 crore — as much as one-fortieth of the country’s national income. This sum is certainly more than the total amount spent by the Central government in a year on health-care and roughly three-fourths of the fiscal deficit indicated in the Union budget for the current financial year.
Source : ExpressBuzz
Actually, we do not know about all the scams that took place before our Independence. What were the scams in Akbars’ court, or in Lord Curzon’s time ?
We talked about Swan and Unitech who become overnight dollar billionaire by reselling. Now, we also know of Tata Teleservices who sold 26% to NTT DoCoMo of Japan for 13,000 crore.
This was one of the big mistakes committed by the scamsters. If they had avoided pure “entrepreneurs” like Swan and Unitech and gone with established “entrepreneurs” like Reliance, Bharti, or Tata, it would have been much much harder to arrive at the market value. They have established operations, customers, and employees. The valuations are would have to factor in all of these assets. The media is also less likely to pursue a story against Ambani and Ratan Tata.
The article goes on to describe the chaos at Sanchar Bhavan,
On January 10, at 2.45 pm, the DoT posted an announcement on its website saying letters of intent would be issued between 3.30 pm and 4.30 pm and that application fees (worth over a thousand crore rupees in many cases) would have to be paid immediately by demand draft with supporting documentation. Licences with spectrum were given to those who deposited their fees first by even a fraction of a second. In the mad melee, well-heeled CEOs were manhandled by hired bouncers and DoT staffers were bashed up before the cops turned up, late as usual.
The article has a predictable conclusion:
By the time these reports come out and court judgments are delivered, the next general elections would either be imminent or over. Therefore, the question that remains is whether or not Raja will be held accountable for his actions while he remains a minister in the Union government. Your guess would be as good as mine.
Source : Express Buzz
This is where we drop the ball.
See, in India we do not conduct elections separately for the Telecom Ministry, Home Minstry, or Health Ministry. They are all part of the Congress led UPA coalition. It is another matter if this happened on the sly without the knowledge of the Congress party. That is not the case. It happened with the full endorsement of the PM and FM.
The minister has claimed he followed existing rules while allotting spectrum, and that his decisions have been endorsed by the Prime Minister and finance minister.
There is a deafening silence from both the PM and former FM on this.
The only solution is to scrap all licenses and re-auction them.
Now, cancellation of licenses may lead to a “Get Shorty” scenario. So be it. Indian entrepreneurs are used to it. They are big boys.