MCA gives clean chit to Swan on Reliance Communications shareholding
18 Jan 2011
Swan Telecom (now Etisalat DB) has received a clean chit from the Ministry of Corporate Affairs (MCA)which said Anil Ambani-led Reliance Communication never held over 9.90 per cent stake in the company.
The ministry's response comes on the telecom ministry's request to examine the Swan Telecom's share holding pattern to verify the company's eligibility for award of licence and 2G spectrum which it received in 2008.
The MCA says in its report that as of 31January, 2006, and since, Reliance Communications (Rcom) had no equity share holding or voting rights in Tiger Trustees Private Limited, Swan Advisory Services Private Limited and Swan Infonet.
The ministry submitted its report to the Department of Telecom (DoT) after making enquiries with the Registrar of Companies (ROC), Mumbai.
After obtaining the licence in January 2008 for 13 circles, Swan expanded its equity base with the induction of UAE-based Etisalat, which now holds over 45 per cent stake in the joint venture.
Telecom minister Kapil Sibal had ordered an enquiry in the stake-holding pattern of the company following allegations that Swan was the front company for Rcom. In its report on the issue, government auditor CAG had also leveled allegations regarding violation of substantial equity clause on the issue.