2G: Unitech Wireless was ineligible
Unitech Wireless (Tamil Nadu) Pvt Ltd was ineligible for 2G licences and by offloading shares immediately after getting licences it bagged huge wrongful profits, a Delhi court said while putting on trial the company.
New Delhi: Unitech Wireless (Tamil Nadu) Pvt
Ltd was ineligible for 2G licences and by offloading shares
immediately after getting licences it bagged huge wrongful
profits, a Delhi court said while putting on trial the company
and its Managing Director Sanjay Chandra.
Special Judge O P Saini paved the way for the trial of
Chandra saying there was prima facie evidence that he had
conspired to get the licence despite the fact that the company
was allegedly ineligible for the same.
"Their (Unitech Wireless, representing eight Unitech
group companies later merged into it), object clause did not
contain telecom business as one of the objects as on the date
of application and it is alleged that their object clause did
not stand amended as in the eyes of the law," the judge said.
It said both Swan Telecom and Unitech Wireless "obtained
pecuniary advantage as they were able to off load their shares
for huge consideration to their foreign partners, that is,
both obtained pecuniary advantage to the tune of Rs 7,105
crore without anything to their credit except the UAS (Unified
Access Service) licences under the relevant date."
The accused companies, defending themselves, had argued
the eligibility of the companies had to be considered as on
the date of grant of licence and not on their date of
The judge, however, said that "in my view of the matter,
I find that the eligibility of an company is to be seen on the
date of the application as well as on the date of licence".