The government has come under pressure to recoup some of the losses that it incurred as a result of the corrupt sale of second-generation (2G) mobile-phone licences in 2008. The corruption scandal came to light in November 2010. According to the Comptroller and Auditor General, the revenue lost through the sale of licences at sub-market prices has been estimated at a staggering US$39bn. The Telecom Regulatory Authority has recommended revoking 38 permits for wireless spectrum and has suggested the "legal examination" of another 31 licences. In total, 157 licences were sold in 2008, mostly to ineligible bidders at, "unbelievably low" prices, according to the Comptroller and Auditor General.

The regulator has the legal power to revoke licences. Few of the successful bidders, which include both large domestic and international operators, will be able to claim credibly that the process was not flawed, and lengthy legal battles could therefore result. Potential investors in India will have to trust that the 2G case is atypical and that they will not be forced to pay retroactively in situations where the government may find that correct procedures have not been followed. Still, the issue could damage India's reputation as an investment destination.