Jailed Reliance executives deny having turned approvers

The three jailed Reliance executives have through their lawyer denied that they have turned approvers, as claimed by the Central Bureau of Investigation (CBI), probing the multi-billion-rupee 2G telecom scam.

''Neither Reliance ADA group nor any of its promoters/executives have committed any offence, and there is no question of any of the charge-sheeted executives becoming 'approvers,'' the lawyer representing the three executives, said in a statement. ''There is no change in statements or stand by the three charge-sheeted-employees at any stage, either before the investigating agency or the courts. Any statement to the contrary by CBI before the Supreme Court is baseless.''

K.K. Venugopal, the CBI's lawyer, said in the Supreme Court that the three Reliance executives – Gautam Doshi, Surendra Pipara and Hari Nair – had retracted their earlier statements accepting responsibility for all decisions taken by the Anil Dhirubhai Ambani Group (ADAG) relating to investments in Swan Telecom.

He said the CBI was determined to find out ''the real beneficiaries'' of the deal involving Swan. Following his statement, Reliance ADAG shares were hammered to 52-week lows on the Bombay Stock Exchange (BSE) on Friday.

Reliance Communications Ltd, the flagship of ADAG, fell by 7.5 per cent to Rs.71.75, its lowest since trading began in 2006. Reliance Capital declined by a sharp 12 per cent to Rs.315.15, while Reliance Infrastructure lost 7.4 per cent to Rs.373.45, the lowest in eight years.

The three top ADAG executives were arrested by the CBI in April and charged of using front companies to acquire additional licences and spectrum for Reliance Infocom. Swan Telecom had applied for a 2G licence in 2007 and in January 2008 was granted the licence. Reliance, which held a 9.9 per cent stake in the company, sold its shares to Delphi Investments, Mauritius, at a hefty discount. The CBI suspects Delphi Investments is a front for the ADAG.

ADAG claims that as per the provisions of the Companies Act 1956, preference share capital held by Reliance Telecom in Swan Telecom was not to be included for purposes of determining shareholder levels.

Senior advocate Aman Lekhi, who represents former telecom secretary Siddartha Behura, also pooh-poohed the CBI's claims that the Reliance executives had turned approver. ''This is again a figment of the CBIs imagination,'' said Lekhi. ''They are reading into something, which is in fact not spoken. As far as the question of approver is concerned it is for the person concerned to decide whether the person wants to be approver or not. Wishful thinking won't in anyway take the place of facts.''