Swan, Unitech knew about policy to be implemented: CBI
The "ill-conceived" design of first-come-first-served policy to be followed by former telecom minister A Raja in the allocation of 2G spectrum was known to Swan Telecom and Unitech Wireless three months in advance, CBI has said.
New Delhi: The "ill-conceived" design of the
first-come-first-served (FCFS) policy to be followed by former
telecom minister A Raja in the allocation of 2G spectrum was
known to Swan Telecom and Unitech Wireless three months in
advance as they were ready with demand drafts for the purpose,
the CBI has said.
The agency, in its charge sheet, said the officials of
Department of Telecom (DoT) had "selectively" leaked the
information regarding the issuance of letter of intent on
January 10, 2008, to these two companies which were ready with
the amount and were able to deposit the fee earlier than
Swan Telecom, whose promoter Shahid Balwa, already
arrested by the CBI, and Unitech Wireless (Tamil Nadu) Pvt
Ltd, had kept demand drafts ready since early October-November
2007, the CBI said in the charge sheet filed in court
Sanjay Chandra, Managing Director of the Unitech Wireless,
against whom charge sheet has been filed in the case, was
known to Raja since the tainted DMK leader was Environment and
Forest Minister as he (Chandra) used to visit him (Raja) in
connection with the company`s real estate venture.
The charge sheet said, "Investigation has revealed that
the accused persons connected with Swan Telecom Pvt Ltd and
Unitech Ltd, had prior knowledge of ill-conceived design of
first-come-first-served process and had been keeping the
demand drafts ready since early October-November 2007 itself."
Swan Telecom Pvt Ltd got first Financial Bank Guarantee
(FBG) and Performance Bank Guarantee (PBG) made for two
circles as early as in first half of November 2007.
"The first manifestation of the knowledge of M/s Swan
Telecom about the manner in which the policy shall be
implemented is seen in the fact that Swan Telecom Pvt Ltd
applied to Punjab National Bank for loan as early as in
October 2007 and mentioned that the demand drafts would be
required at a very short notice as these are required to be
deposited as soon as the LoI would be issued," the charge
Regarding Unitech, the agency said it had its demand draft
ready by October 10, 2007, much before the indications about
the FCFS policy came to light through the media in December
"Unitech wireless (Tamil Nadu) Pvt Ltd also had its demand
draft ready by October 10, 2007, even before the decision was
taken to call the applicants for the issuance of LoIs by
twisting the FCFS policy giving priority for issue of licences
to those who complied with LoI conditions first," the CBI
"Even the FCFS policy was implemented by the DoT in a
manner which resulted in wrongful gain to certain companies,"
the charge sheet said, referring to these two telecom
companies, and added that "favour was allegedly shown to some
applicants by way of leaking the information about the date of
issuance of letter of intent."