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Tata "highest" contributor in "so-called" huge loss: Balwa

Last Updated: Monday, August 1, 2011 - 20:12

New Delhi: Swan Telecom promoter Shahid Balwa on Monday accused the Tata as the "highest contributor" in the "so-called" loss of over Rs 30,000 crore to the state
exchequer in the award of licenses for the spectrum.

"Due to Tatas, the exchequer suffered a loss of Rs 4,930 crores while Swan Telecom is placed seventh in the alleged list with its contribution Rs 2,624 crores," Majeed
Memon, advocate for Balwa, told special CBI Judge OP Saini.

"The highest contributor of loss is Tata. Somebody came before this court with a ground to implead Tata so that the matter can be decided fairly but the application was
rejected and penalty was also imposed. All the nine applicants, among which the 122 licences for 22 circles were distributed, have not been chargesheeted," Memon said.

During the hearing, Balwa advanced arguments himself for around five minutes to accuse Tata of having sold the equities and earning a "windfall profit".

"Tata was the only company to sell secondary equity. They earned Rs 12,000 crore from it, out of which Rs 3,000 crore went into Tata Sons` pocket while only Rs 9,000 crore were put into the company," Balwa alleged.

"Every other company, including Swan and Unitech, diluted their equity and the entire money has gone into the company for rolling out services, infrastructure purposes and
expanding business. Even then, we are being accused of making windfall profit.

Memon said Swan Telecom has not earned anything which can be termed as a "windfall profit" and the government has made it "amply clear" that dilution of equities did not amount to sale of licences and hence there was no sale.

"As against Rs 12,000 crore loss caused by Tata, we made Rs 1538 crore and Rs 700 crore was against the bank guarantee," he said.

"We have no animosity against Tata. Our submission is not that bring them in as we do not want to increase population density inside Tihar jail. Please, put us out and
allow us to be with them outside. Let us do our business," Memon said.


First Published: Monday, August 1, 2011 - 20:11
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