The 2G spectrum scam in India involved the issue of 1232 licenses by the ruling Congress-led UPA alliance of the 2G spectrum to 85 companies including many new telecom companies with little or no experience in the telecom sector at a price set in the year 2001.

The scam involved allegations regarding

the under pricing of the 2G spectrum by the Department of Telecommunications which resulted in a heavy loss to the exchequer, and

the illegal manipulation of the spectrum allocation process to favour select companies

The issue came to light after the auction of airwaves for 3G services which amounted to 677,190 crore (US$151.01 billion) to the exchequer. A report submitted by the Comptroller and Auditor General based on the money collected from 3G licenses estimated that the loss to the exchequer due to under pricing of the 2G spectrum was 176,379 crore (US$39.33 billion).

The scam came to public notice when the Supreme Court of India took Subramaniam Swamy's complaints on record.



Corporations involved:



Allianz Infra

Aircel

Dishnet Wireless

Loop Mobile

Sistema Shyam Mobile (MTS) – Sistema Mobile Russia

Reliance Communications

S Tel

Swan Telecom

Tata Tele Services

Unitech Group

Videocon Telecommunications Limited

Vodafone Essar

Virgin Mobile India



Corporate personalities involved:



Anil Ambani - Reliance Group

Ratan Tata

Shahid Balwa - Swan Telecom (now Etisalat DB)

Vinod Goenka - Swan Telecom (now Etisalat DB)

Venugopal Dhoot - Videocon Group

Prashant Ruia - Essar Group

Sanjay Chandra, Managing Director of Unitech Ltd and Unitech Wireless

All of them have either been questioned by the CBI or are prospective suspects in the scam.