The Jio Scam

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In telecom industry there are licenses in the name of spectrum to be taken from the government in order to provide telecom services in the nation. The government issues three types of licenses:
1. Mobile Internet Connection License
2. Cable Broadband License
3. Wireless Broadband License
Back in the year 2007, the government issued telecom spectrum for wireless broadband connection and in the year 2010 TRAI clarified that this spectrum could only be used for broadband internet and not for voice calls. Companies like Vodafone, Airtel, BSNL had spectrum for both mobile connection and cable broadband so they thought that this spectrum was of no use for them and thus they didn't participate in the auction.
 But in 2011 for the spectrum auction a company named Infotel who had a networth of just only 2.5 crores had applied for the bid. The auction had a compulsion that the company applying for the bid must have 250 crores bank gaurantee. Infotel surprisingly got the bank gaurantee from Axis Bank. It won the bid easily without any difficulty because of lack of competition and on the same day Infotel was bought by Reliance Industries and merged to form Jio Infocom. 
In 2013, the government made a big change in this spectrum rules by allowing voice call license which was earlier can be used only in broadband connection on a very marginal transfer fees which was to be paid by Jio.
Reports say that this fees should be have equalled to around whopping 20000 crores but Jio settled it for very less. All the other telecom companies were woeful and filed case against Jio Infocom for indulging in dirty business deals. But nothing till now has happened in this case.
These 20000 crores amount would have helped the government in many sectors for developing the nation but instead went into the hands of corrupt politicians and bureaucrats.

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