Reliance ADAG indirectly owned Swan Telecom before 2G scam: CBI
14 Jul 2015
The Central Bureau of Investigation investigating the 2G licence scam, today accused Reliance Anil Dhirubhai Ambani Group (ADAG) of having "infused" thousands of crores in Shahid Balwa's Swan Telecom Pvt Ltd (STPL), which acted as a front company to bag 2G licences.
The CBI counsel told the court that while Reliance ADAG was shown to be holding only 9.9 per cent in STPL with the remaining 90.1 per cent being held by Tiger Traders Pvt Ltd (TTPL), TTPL was nothing but a firm owned by Reliance ADAG.
The CBI also told a special 2G court that the front company was not eligible in March 2007 to apply for the radio spectrum.
Special public prosecutor Anand Grover presenting the final arguments for CBI, said Reliance ADAG had transferred huge amount of money to STPL through a ''circuitous route'' to conceal its ''true ownership'' while at the same time to fulfill the net worth criteria for 2G licences.
''For 13 circles, STPL applied for 2G licences and Reliance ADAG funded thousands of crores in it (STPL),'' he told Special CBI Judge O P Saini.
Reliance ADAG has denied all through that STPL was its front company.
Grover said although it was shown that Reliance ADAG was holding only 9.9 per cent in STPL and the remaining 90.1 per cent was held by Tiger Traders Pvt Ltd (TTPL), TTPL was nothing but a firm owned by Reliance ADAG.
''TTPL was a company owned by Reliance ADAG to control STPL...TTPL's inter-locking with other group companies was made. This was done to conceal the true ownership of STPL,'' he claimed during the final arguments in the case in which former Telecom Minister A Raja and others are facing trial.
''It is our case that all these companies were operated by Reliance ADAG and its officials were on the board of directors in these firms and key operations were done by them. Gautam Doshi, Surendra Pipara and Hari Nair (three top officials of Reliance ADAG facing trial in the case) were commanding the structures of these companies,'' Grover said.
He told the court that it was CBI's case that STPL was a Reliance ADAG company and on the date of application seeking 2G licences, ie, 5 March 2007 STPL was not eligible for a spectrum licence.
The court will continue hearing the final arguments in the case on 22 July.