2G scam: CBI, ED probing foreign links

The Central Bureau of Investigation and the Enforcement Directorate are investigating several foreign companies in regard to their investments into Indian firms, including many of the beneficiaries of 2G spectrum and licence allocation in 1998 - now widely reported as a scam.

While some of these companies are suspected to be fronts floated by major corporate houses that benefited from the scam, many others are suspected to be vehicles for moving kickbacks.

The CBI has already forwarded a letter rogatory to Mauritius seeking its assistance in investigating most of these foreign companies. In its LR issued in December, the bureau has asked for details of 12 companies which apparently had invested in Swan Telecom, Loop Telecom, or had financial links to Reliance Telecom and the Essar group.

These 12 companies are Etisalat, Delphi, Apex Fund Services, Maavi Investment Fund, Capital Global, Black Lion, Inditel Holding, Deccan Asian Infrastructure, Aid-tel Holding, Kaif Investment, Electro Investments and Palab Investments.

Official sources said ownership details, investment patterns and percentage of shares have been asked through Mauritius authorities in the LR. A Times of India report says several money trails are being probed.

The CBI is looking at a web of transactions around Swan Telecom, which was accused by the Comptroller & Auditor General of being a front for Reliance Telecom. Reliance has vehemently denied these allegations.