#RelianceJioScam – Was The Spectrum Auction System Rigged?
Let’s say the Government of India wants to utilise its spectrum resources (which is a national resource belonging to the people of India) for development purposes. Ideally this is done by state owned telecommunications companies for various reasons, the major being that of national security. If the state telco lacks expertise or funding it is sourced from the private sector. Many countries are now increasingly reverting back to this practise. However, since Liberalisation and Privatisation, GOI chose to auction the spectrum, whereby the Govt sold rights (licences) to transmit signals over specific bands of the electromagnetic spectrum and assigned scarce spectrum resources to private/foreign players. Even for the auction process itself the Govt looked elsewhere. The guys chosen to manage the auction process was none other than the House of Rothschild, one of the controlling families of the East India Company. It is a mystery why the GOI could not find appropriate expertise in any of the IITs, IIMs to manage this crucial task and instead resorted to our colonial oppressors as advisers. The process resulted in one of Independent India’s major scams landing most of this critical national resource in Rothschild’s lap. Is it really surprising that Rothschild heads Reliance’s Mergers & Acquisitions team?
In 2010, 3G and 4G telecom spectrum were auctioned in a highly competitive bidding. The Government chose Rothschilds to design a first-of-its-kind e-auction mechanism in the world, a US$2.27 billion landmark deal, in which they got atleast Rs 30.5 crore in commission.
Here are the responsibilities entrusted to Rothschilds as advisers of Govt of India (as specified in the advisers’ contract with DoT)
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- Managing overall process and primary point of contact with DoT;
- Clarifying regulatory context and other valuation-affecting matters with DoT;
- Writing bidding documents and updating it for further auctions;
- Marketing the opportunity to potential participants.
The entire auction process resulted in a major scam which we know as the 2G spectrum scam. How much was the tax payer’s loss in the scam and where the money ended up is anybodys guess.
Reliance was the major beneficiary of the scam. Reliance Jio (earlier known as Infotel) was granted pan-India license for 4G in 2010 making it the only company to have all-India 4G license among others licenses. Jio employed the services of Anshuman Thakur (a former director at NM Rothschild and now Head of Strategy and Planning at Reliance Jio), an auction specialist who had designed the spectrum auction system in 2010. Swan Telecom was floated as a subsidiary of Reliance Telecom to circumvent the one-company-one-license rule. In 2008, Swan merged with Allianz Infratech; late in the year Abu Dhabi’s Etisalat bought about 45 percent of the company, renaming it Etisalat DB Telecom.
The question that no one has asked till today is this: How could the Rothschild be the adviser to Government of India designing the auction system and at the same time also be advising Reliance and other bidders for the same auction? Advising both sides of the system, wasn’t the entire auction system rigged? The same Rothschild recently wrote a letter to the Supreme Court on behalf of Vijay Mallya that made $40 million of Indian taxpayers money vanish.
Executives of Reliance were charged under criminal conspiracy to cause criminal breach of trust by a public servant, criminal conspiracy (Section 120-B) and cheating (Section 420). Again in 2013, a PIL was filed in the Supreme Court which challenged the grant of pan-India licence to Jio by the Government of India. The PIL also alleged that Jio was allowed to provide voice telephony along with its 4G data service, by paying an additional fees of just $25 million which was arbitrary and unreasonable, and contributed to a loss of $340 million to the exchequer. In April this year however the Indian Department of Telecom (DoT), refuted all of CAG’s claims. As a result, the PIL was revoked, and the accusations were dismissed.
Reliance was one of the most famous “zero-tax” company in India. Till three decades after its listing, at no stage did Reliance ever pay corporate income tax on its profit, or even felt the need to make more than token provision for it. It was only in 1996-97, after the introduction of MAT (Minimum Alternate Tax) on the company’s profit that they made a provision for corporate Income tax. However still, in 2015 suspecting the presiding lawyer of having ‘continuing’ links with the firm’s legal team GOI had to ask RAW to probe Reliance lawyers and look at Fraud office to check for ‘unpaid tax’.
But here is the kicker.
Even after Dominion Independence the British had a tight control over India and Pakistan’s oil resource via Burma Shell and ESSO. During 1971 war with Pakistan they denied to supply oil to Indian Army, Navy and Air Force. Irritated by this, the then prime minister Indira Gandhi nationalized the oil industry to protect our country’s mineral wealth, indigenously develop self-sufficiency (swadeshi swaraj) and reduce dependency on foreign (videshi) raw material. After nationalisation these Indian companies were mandated to keep a minimum stock level of oil, to be supplied to Indian military when needed. These oil reserves were called the military stock level (MSLs). These two companies, after Government of India took them over, were developed by Indians and were worth a lot more than their original price in 1971. With privatisations all this would change because private players focus only on profits with requirements such as MSLs taking a back seat. This would effectively undo what was done by Indira Gandhi in the 70s with the result that the security of the country may be jeopardised. Now these two companies thus taken over by GOI and running profitably were slated for sale under privatisation and liberalisation to the same Burma Shell and ESSO disguising as Royal Dutch Shell and EXXON; both in collaboration with Reliance Industries. Meaning that the original owners of these two companies waited for 32 years, and are now getting many times more worth on their investment along with getting their companies once nationalized back into their hands.
Royal Dutch Shell and Burma Shell are subsidiaries of Shell Corporation controlled by the House of Rothschilds centered in London who also controlled the old EICs and the then Bank of England. EXXON is the name given to one of the companies formed in 1911, when the original Standard Oil Empire was broken in to smaller units by the American judiciary. This entire empire of Standard Oil is controlled by one family the House of Rockefellers, centered in New York. Interestingly Rockefellers and Rothschilds are related to each other as they have a tradition of intermarriages within these two houses.
In 1971 the EICs denied to give us our own oil to fight our war; what do you think they could do now that they own not just our oil but also our spectrum and telecommunications band? These families are well-known for funding both sides of the war and making huge profits from it by determining the outcome of war and bringing entire nations to its knees through the ensuing burden of debt.
Why is it that in any of the scams although the major beneficiary are the erstwhile East India Company owners (as we have documented in The Rothschild Plan To Develop India) we never hear about them in mainstream media? Nor are they even pursued by the investigating agencies?
The reason behind this is the working methodology of the EICs which none in India have tried to understand even after six decades of Dominion Independence. East India Company’s trade was divided into many parts and a particular family owned each part. They were given full control over a nation under consideration. They developed local industrial/business houses, through which they exploited the independent nations. So for people of any nation, it is the local industrial house that comes to light as the exploiter and not EICs. Just like during EIC days when the zamindars were blamed for exploitation of farmers with huge taxes, where the fact was that the British under EIC exploited the farmers with their policies. Even today these Houses control most of the MNCs we see through their local business houses and follow the same ideology and methodology as that of the EICs.
P.S. – What we have documented here is just a case study of Reliance, however if you look closely the hidden hand can be seen dealing/advising almost all the bidders apart from designing the entire auction system itself for the Govt. like Aircel etc. We encourage all our readers and concerned citizens to find out all other such telecommunication companies with link to the Rothschild banking family of the East India Company.
Lookout for India’s biggest spectrum sale coming soon, starting September 29. Bankrupt banks Bank of America, Merrill Lynch, Goldman Sachs are already excited about it with British telecommunications giant Vodafone investing a whopping $7.1 billion in its Indian unit ahead of the spectrum sale, raising money via IPOs managed by none other than the House of Rothschild.
Shelley Kasli for GreatGameIndia – India’s only quarterly magazine on Geopolitics & International Relations.
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