What is the reason behind 1.76 lakh crores in spectrum scam

Many of you must have heard that India lost 1.76 lakh crores in spectrum licenses.There is definitely theory behind it, but it's not another politically bloated number. These are the findings of Comptroller and Auditor General (CAG), a government authority.

1. Number of mobile connections in 2001 was 4 million, and it increased to 350 Million in 2008. All the allocation of 122 new licenses was done based on 2001 statistics and 4 million numbers, instead of 2008 numbers. The notification was issued in 2008 and 2001 metric is used for determining cost.
2. If the prices are calculated at market prices of 2008 (on basis 3G values) , Department of Telecom (DoT) would have received Rs. 111,511 crores as against to Rs. 9,012 realized by DoT now. Licenses allocated under duel technology would have been Rs. 40526 crores as against to Rs. 3372 crores now. The total difference is at Rs. 139653 crores, which is Rs. 1.39 Lakh crores
3. Additional spectrum was allocated for existing 9 companies (not part of new licenses), and that was also done at 2001 prices. Loss from this was calculated as Rs. 36729 crores
4. The total loss from # 3 and #4 above, Rs.176382 crores which is 1.76 lakh crores

Additional findings of CAG
1. DoT did not follow the eligibility criterion set by itself for the bidding process
2. Telecom Regulatory Authority of INDIA (TRAI) recommendations were ignored
3. Bidding deadline time was shortened, without any discussion to favor few companies.

Sadly the corrupts and the culprits are not arrested yet. Please sign petition  to Prime Minister to take action and join "kill corruption - National campaign against corruption" movement.