The great Indian 2G circus

The great Indian 2G circus

 

As the much discussed 2G scam has brought a big shame to Indian government, to put up a nice show for the AAM JUNTA (or mango people) the UPA organized the great Indian 2G circus, after much pressure from the opposition. With the whip in CBI’s hand, UPA government seems to have decided to execute each and every entity that was ever connected a 2G spectrum license. Don’t be surprised if the CBI arrests a common man, who used a cell phone with 2G network in it.

As Congress has decided to show no mercy and to grill the innocents with the guilty, in order to protect its political image, almost all the telecom companies are being pulled in the ruthless mill of accusations and finger-pointing by the CBI.

The first sacrifice on the guillotine was that of the former telecom minister A Raja. Though it can not be proven in any manner, one can clearly see that A Raja was made into a scapegoat in this whole process. He did not seem too happy to take the bullet for the sake of cabinet, which could possibly have been the key decision maker in allocation of 2G spectrum license. The DMK leader was heard speaking to his lawyers in Tamil on 3rd February 2011 during which, at one point, he said all decisions on 2G were taken by the cabinet.

Government didn’t stop after grilling A Raja, but decided to pull all the companies that ever acquired the 2G spectrum license in 2008on to the platform of punishment. Unitech and Swan were made the prime beneficiaries as they sold their stakes to other global firms shortly after getting licenses.

According to the FIR filed by CBI, the charges against Unitech are:

1. It appears that certain telecom companies were favored during the allocation of 2G spectrum by former telecom minister A Raja. During the allocation process, companies like Swan and Unitech seemed to have been tipped off, because despite the cut-off date being brought forward, they had their payments ready.

Well, there is a possibility that the 2G license was sold to Unitech at a low price to mask the detection of favors being done to other telecom companies. As Unitech was quick enough to arrange for funds without being tipped off, A Raja had no other option but to give the license to Unitech.

2. Unitech was allotted UAS licenses for 22 circles for Rs 1658 Crore. It offloaded its 60 per cent of shares to Telenor of Norway for Rs 6100 Crore before the roll-out.

At the time of the offloading, it was stated by Unitech that the proceeds of the stake sale to Telenor would be utilized entirely for telecom operations. It was also declared that the company would launch the services in the first half of 2009. Unitech kept its promise and the telecom operations of Uninor started in the last quarter of 2009.

Now, as it was apparently difficult for the CBI to prove the charges against Unitech, they simply pressed more charges of cheating and forgery against all the companies on Monday 14th February 2011, saying they produced false documents to claim licenses and misled the government.

Sanjay Chandra, MD of Unitech Group has declined all of the above charges and clearly stated that Unitech was not favored in any way during the allocation of 2G spectrum license. He also said, “Unitech has co-operated with all investigating agencies from the very beginning, as we have nothing to hide. Our officers have provided all records for examination and clarified all issues raised by them from time to time. Going forward, we will continue to assist in the same spirit.” There is no better explanation to prove innocence of Unitech than the openness with which Unitech is facing the CBI inquiry.

To highlight the fact that Unitech is innocent, their partner in Uninor, Telenor group shares a strong bond of trust with them. Given that Unitech will come out clean from this scam, Telenor has decided to stay in the Indian markets with Unitech group. The regional head of Telenor Group, Glenn Mandelid recently stated that company does not have any intentions to make changes in the long term plans for the Indian markets. He also stated that within 5 years, the company expects to become the cash slow positive and by the year 2018 it targets to grab 8% of the total market share. It was also expected that the Indian venture will start giving positive results within 3 years.

 

Unitech is amongst India’s leading business groups, with an outstanding track record in large-scale, integrated, Real-Estate Development and Infrastructure Development in India. For more info visit here: www.unitechgroup.com