Ethical Issues in India
Report on:
Ethical Issues in last 6 month
Submitted to:
Prof. Majalkar
BY:
Nihali Jadvani
Roll No: 18
For Subject
Business Ethics & Corporate Governance
2G Spectrum Scam
We have had a number of scams in India; but none bigger than the scam involving the process of allocating unified access service licenses.
•
It is Rs.1.76-lakh crore worth of scam. The amount is approximately 2% of national GDP or 1/3 of current tax revenue of India. It is also equals to annual income of telecom service sector.
•
The former Telecom minister A Raja who according to the CAG, has evaded norms at every level as he carried out the dubious 2G license awards in 2008 at a throw-away price which were pegged at 2001 prices.
Beneficiaries:
Reliance Communication allegedly had stake 10.7% of in swan telecom.But according to rule a telecom operator cannot own more than 10% stake in another telecom operator company operating in same area.
Unitech had no experience in telecom sector but according to rule the license should be given to those who have experience in telecom sector. They got license for throw away price of Rs.
1661 crore. It sold its 60% stake to Telenor at Rs. 6200 crore.
Swan Telecom got license for Rs. 1500 Crore.it sold 45% stake to UAE based Etisalat at Rs.
9800
crore.
Swan
Telecom had no experience in telecom sector.
Other beneficiaries include Datcom solution, Loop Telecom, Tata teleservice, STel ltd, Idea cellular & spice communication.
Ethical issues:
With outbreak of 2G scam following ethical issues on the part of Government, Regulatory bodies, Media & industry came into forefront.
Governance:
Spirit of collective responsibility not conserved.
Seemed like throwback to the license raj era.
Regulation:
Toothless with only advisory powers.
Insufficient manpower worsens the situation
Appointment process aid conflict of interests
Proper decentralization of powers & implementation of existing rules may have
Ethical Issues in last 6 month
Submitted to:
Prof. Majalkar
BY:
Nihali Jadvani
Roll No: 18
For Subject
Business Ethics & Corporate Governance
2G Spectrum Scam
We have had a number of scams in India; but none bigger than the scam involving the process of allocating unified access service licenses.
•
It is Rs.1.76-lakh crore worth of scam. The amount is approximately 2% of national GDP or 1/3 of current tax revenue of India. It is also equals to annual income of telecom service sector.
•
The former Telecom minister A Raja who according to the CAG, has evaded norms at every level as he carried out the dubious 2G license awards in 2008 at a throw-away price which were pegged at 2001 prices.
Beneficiaries:
Reliance Communication allegedly had stake 10.7% of in swan telecom.But according to rule a telecom operator cannot own more than 10% stake in another telecom operator company operating in same area.
Unitech had no experience in telecom sector but according to rule the license should be given to those who have experience in telecom sector. They got license for throw away price of Rs.
1661 crore. It sold its 60% stake to Telenor at Rs. 6200 crore.
Swan Telecom got license for Rs. 1500 Crore.it sold 45% stake to UAE based Etisalat at Rs.
9800
crore.
Swan
Telecom had no experience in telecom sector.
Other beneficiaries include Datcom solution, Loop Telecom, Tata teleservice, STel ltd, Idea cellular & spice communication.
Ethical issues:
With outbreak of 2G scam following ethical issues on the part of Government, Regulatory bodies, Media & industry came into forefront.
Governance:
Spirit of collective responsibility not conserved.
Seemed like throwback to the license raj era.
Regulation:
Toothless with only advisory powers.
Insufficient manpower worsens the situation
Appointment process aid conflict of interests
Proper decentralization of powers & implementation of existing rules may have