Focus on Swan, Unitech as CBI turns heat on Raja

The two front companies, Swan and Unitech, that bought 2G spectrum at low prices in 2008 and made a fortune by equity sale to foreign companies are now the focus of the probe into spectrum allocation scandal that rocked the nation and forced the resignation of the then telecom minister A Raja.

Counsel for the CBI, which moved the special court against the alleged irregularities in the allocation of radio spectrum, argued that the minister had favoured Swan and Unitech in the allocation of 2G spectrum, thereby helping the two companies make huge profits by selling it to other companies, while causing a loss of Rs7,105 crore to the exchequer.

Unitech, a real estate firm, had brought telecom licence for 22 circles across the country for Rs1,658 crore and sold 67 per cent of the equity to Norwegian telecom firm Telenor for Rs6,100 crore.

Swan, which bought licences for 13 telecom circles for Rs1,537 crore, sold 45 per cent equity to UAE's Etisalat for Rs4,200 crore.

Unitech Wireless, which sold 54 per cent equity to Norway's Telenor, is now called Uninor while Swan, which sold 45 per cent stake to Etisalat, is now called Etisalat DB.

The CBI counsel said the two companies were given undue favours in the grant of spectrum allocation.