CBI to probe; Batcha was being questioned for his role in spectrum allocation scam.
A M Sadhick Batcha, a close aide of former telecom minister A Raja and one of the prime suspects in the 2G spectrum allocation scam, on Wednesday died in Chennai. He is reported to have committed suicide.
The development has given a new twist to the ongoing investigations into the scam, in addition to setting off speculation over the nature of death of a key suspect and a crucial testimony in a corruption case that has rocked the United Progressive Alliance government at the Centre.
Batcha was managing director of Green House Promoters Pvt Ltd, under the scanner of the Central Bureau of Investigation (CBI) for alleged links with Swan Telecom. Swan, along with other telecom companies, was a beneficiary of the controversial spectrum allocation in 2008, which is estimated to have cost the exchequer Rs 1.76 lakh crore, according to the Comptroller and Auditor General (CAG).
Batcha was found hanging from the ceiling of his house, police said. He was taken to Apollo Hospital, where he was declared dead. “The family says he had hanged himself,” police commissioner T Rajendran told reporters.
Batcha was repeatedly questioned by CBI for alleged involvement in the scam. Both CBI and the Enforcement Directorate were probing his role. He was close to Raja, who was forced to resign from the telecom ministry after the CAG report.
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According to reports, more questioning of Batcha might have given CBI important clues to the scam.
Batcha, according to reports, violated foreign exchange laws for routing money to Swan Telecom, which allegedly invested Rs 1,000 crore in Green House Promoters. Batcha owned around five per cent stake in Swan Telecom, said reports.
Green House was promoted by Batcha and controlled by Raja's family, including wife and brothers. The investigating agencies are looking into how the company, with a capital of just Rs 1 lakh in 2004, managed a revenue of over Rs 600 crore in a span of just five years.
Batcha, who was from Raja's constituency, Perambalur, was a small-time saree seller when he met the Dravida Munnettra Kazhagam leader in the late 90s.
Green House was formed four months after Raja became a Cabinet minister (in charge of the environment and forest ministry) for the first time in May 2004.
According to police sources, the investigation into Batcha’s death is likely to be transfered to CBI.