Swan Telecom a Reliance ADAG front company: CBI

Last Updated: Friday, July 22, 2011 - 08:47

New Delhi: The Central Bureau of Investigation (CBI) on Thursday claimed that Swan Telecom is a front company of Reliance Anil Dhirubhai Ambani Group while arguing in the 2G spectrum allocation scam case, reports say.

Special Public Prosecutor U U Lalit argued Reliance had floated Swan Telecom as it was not sure if its application for dual technology use of spectrum will be allowed.
But by floating a front company, Reliance had violated the law which stipulated that no group can have substantial equity holdings in in two companies within the same circle, he contended. 

"It (Reliance) was unclear whether they will be allowed GSM spectrum through dual technology. So, they put up the particular company... Swan was nothing but an alter ego of Reliance. Various companies were formed as associates and they fraudulently showed transfer of shares," said Lalit.
He argued for framing charges against the 2G scam accused on five counts including those on changes in cut-off list, violation of first-come-first-serve policy, approval of dual technology and eligibility, besides that for cheating the government.

The CBI, arguing in the case, charged former telecom minister A Raja and his secretary RK Chandolia with favouring Swan Telecom and Unitech Wireless.

The CBI also claimed that Spice Telecom's licence eligibility was better than Swan Telecom and Unitech Wireless.

Delhi court today allowed the Income Tax department to interrogate six accused, including former telecom minister A Raja, arrested for their alleged involvement in the 2G scam, in judicial custody itself.

Special CBI Judge O P Saini allowed the application moved by the Income Tax department seeking permission to quiz Raja, Swan Telecom promoters Shahid Usman Balwa and Vinod Goenka and three Reliance ADAG top officials-- Gautam Doshi, Hari Nair and Surendra Pipara.


First Published: Thursday, July 21, 2011 - 17:41
comments powered by Disqus