Raja to be charged with cheating, forgery and corruption, SC told.
Swan Telecom and Loop Telecom were used as fronts by the ADA Group and Essar Telecom, respectively, to get 2G spectrum illegally during the tenure of former telecom minister A Raja, the Central Bureau of Investigation (CBI) has told the Supreme Court.
CBI, which filed a status report on its probe into the 2G spectrum scam — expected to have caused a loss of Rs 1.75 lakh crore to the exchequer — said Raja, along with Swan and Loop, would face charges of “cheating, forgery and corruption”.
Essar has a stake in Vodafone Essar. Swan promoter Shahid Balwa has been arrested. ADAG Chairman Anil Ambani had earlier appeared before CBI.
CBI and the Enforcement Directorate (ED) told the court that large-scale violations of the Foreign Exchange Management Act (Fema) and benami transactions were involved in bringing foreign money into Swan and Loop.
ED said Rs 106.95 crore in foreign money was received by telecom company Etisalat (earlier Swan) in return for just one share whose market value was just Rs 270. ED also told the court that it would start “attaching” and “confiscating” the properties of the erring telecom companies for violating Fema soon after the chargesheet is filed.
| WRONG CALLS |
| * Etisalat (earlier Swan) allegedly got Rs 106.95 crore in foreign money in return for just one share whose market value was just Rs 270 |
| * Evidence of ‘forgery’ in changes made in the first-come-first-serve policy to allow some companies get 2G spectrum |
| * Etisalat used front companies to control more shares of its Indian operations than the 45 per cent that was publicly revealed and approved by the authorities |
CBI said there was evidence of “forgery” in the changes made in the first-come-first-serve policy to allow some companies get 2G spectrum during Raja’s tenure.
It said the main charge sheet would be filed on April 2 against four people, including Raja and some top executives of telecom companies, and two companies.
CBI said the supplementary charge sheet would be filed by April 25 and investigation into the scam completed by May 31.
Senior advocate K K Venugopal, appearing for CBI, placed a transcript of telephonic conversations of corporate lobbyist Niira Radia with industrialists and top corporate executives and politicians and said, “These telephonic records will be used as evidence in the criminal prosecution of the accused.”
Venugopal said Etisalat violated foreign investment and foreign exchange rules when it entered India. He accused Etisalat of using front companies to control more shares of its Indian operations than the 45 per cent that was publicly revealed and approved by the authorities.
