2G: setback for CBI as Reliance official retracts statement

The trial in the 2G spectrum allocation case took an unexpected twist on its first day on Friday, when Reliance Capital Ltd assistant vice-president Anand Subramaniam - the first prosecution witness - said he could not recollect under whose advice he had issued a letter for opening an account with HDFC Bank for Swan Telecom.

This is something of a setback for the prosecution, which is trying to establish that Swan was a front company for Anil Ambani's Reliance Communications, set up in order to bag extra spectrum.

Subramaniam had earlier told the Central Bureau of Investigation in March that he had opened the account on telephonic instructions from Hari Nair, senior vice-president of Reliance ADAG, and one of the accused in the scam.

''I signed documents Ex Pw 1/A and 1/B as there was a board resolution in our favour, including myself. On seeing letter Ex Pw 1/B, I do not recollect under whose instructions I signed this letter,'' Subramaniam said before special CBI judge O P Saini. The documents mentioned by him are exhibits that pertain to the letters sent to the Fort branch of HDFC Bank in Mumbai for opening a bank account for Swan Telecom.

Subramaniam also said he was not aware if Anil Ambani, the chairman of the group, was also chairman of Swan Telecom.

Beside Subramaniam, the special CBI court trying the case had summoned Reliance ADAG president A N Sethuraman and Etisalat DB Telecom's chief regulatory officer V K Budhiraja as the first three witnesses.