Several officials at Reliance ADA Group, the Indian conglomerate and parent company of cellco Reliance Communications (RCOM), have been quizzed by the Central Bureau of Investigation (CBI) in connection with the 2G spectrum scandal, according to local…
Several officials at Reliance ADA Group, the Indian conglomerate and parent company of cellco Reliance Communications (RCOM), have been quizzed by the Central Bureau of Investigation (CBI) in connection with the 2G spectrum scandal, according to local reports.
In mid-January, the Ministry of Corporate Affairs (MCA) cleared RCOM of holding more than 9.9% in telecom JV Etisalat DB in 2008. Under Indian shareholding laws, a telecom operator is prevented from holding more than 10% in a competitor.
Reports explained that had RCOM owned 10% or more of Etisalat DB, both companies would have been ineligible to get 2G licences in 2008.
However, just a few days ago, Indian authorities arrested Shahid Balwa, the managing director of real estate group DB Realty and vice chairman of Etisalat DB, on allegations of wrongdoing in the scandal.
In early February, the CBI said that Etisalat DB and Uninor, owned by Norwegian incumbent Telenor, were both beneficiaries of the scam. The list reportedly includes other companies, but these were not named during a questioning of A. Raja, who was also arrested a few days ago.
The CBI is now reportedly looking to question Sanjay Chandra, the managing director of real estate group Unitech, which owns Uninor together with Telenor.
The companies could not be reached for comment before the press deadline.
