However, the process was marred by corruption and crony capitalism. Several telecom companies were given licenses and spectrum allocations at significantly undervalued prices. This scam, which came to light fully around 2008-2009, was estimated to have caused a loss of approximately ₹1.76 lakh crore (approximately $39 billion USD) to the Indian exchequer, based on the calculations by a Joint Parliamentary Committee (JPC) and the Comptroller and Auditor General (CAG) of India.
The scam led to significant reforms in the telecom sector. The government implemented changes in the way spectrum was allocated, shifting from a first-come-first-served basis to an auction system, ensuring a more transparent process.
The scam led to numerous legal cases, with several high-profile arrests and convictions. Notably, in 2013, A Raja, the then-Minister of Communications and Information Technology, and K. Subra Rao, a former telecom secretary, were charged with various offenses under the Indian Penal Code (IPC) and the Prevention of Corruption Act.
Several convictions have been secured in the case, though the legal process has been slow and lengthy.
The 2G spectrum scam, one of India's most notorious corruption cases, involves the allocation of telecom licenses and the rights to use 2G spectrum to various companies at throwaway prices. This practice, which started in the early 2000s and continued into the late 2000s, resulted in a huge loss to the Indian government.