2G spectrum allocation: licences sold cheap, then cancelled

What happened

In January 2008, the Department of Telecommunications under minister A. Raja issued 122 new Unified Access Service licences bundled with 2G spectrum on a first-come-first-served basis — at prices fixed in 2001, without auction, and with cut-off dates altered at short notice. Several licensee companies with no telecom experience sold stakes shortly afterwards at many times the licence price.

What the official record found

In November 2010, the Comptroller and Auditor General reported that the allocation had been arbitrary and estimated the presumptive loss to the exchequer at figures up to ₹1.76 lakh crore, depending on the benchmark used. In February 2012, the Supreme Court cancelled all 122 licences, holding the first-come-first-served policy arbitrary and unconstitutional, and directed that spectrum be auctioned.

Where it stands

In December 2017, a special CBI court acquitted all accused, including A. Raja and M.K. Kanimozhi, holding that the prosecution had failed to prove criminal conspiracy or quid pro quo. The judge criticised the quality of the prosecution’s evidence. The CBI and Enforcement Directorate appealed; the appeals remain pending before the Delhi High Court. The policy itself stands judicially condemned; the criminal charges did not survive trial — both facts belong to the record.