The Central Bureau of Investigation has filed a charge sheet against nine people, including former telecom A. Raja, and three private companies in relation to the country’s 2008 2G scam.
A. Raja, former telecom secretary Siddhartha Behura, Raja’s private…
The Central Bureau of Investigation has filed a charge sheet against nine people, including former telecom A. Raja, and three private companies in relation to the country’s 2008 2G scam.
A. Raja, former telecom secretary Siddhartha Behura, Raja’s private secretary R K Chandolia, as well as some executives of cellcos Swan Telecom (now known as Etisalat DB) and Unitech Wireless (Uninor) are facing charges of cheating and forgery, according to reports.
Norwegian telco Telenor, which owns a majority stake in the JV Uninor, said on its website: “When Telenor invested Rs61.2bn (US$1.3bn) for a 67.25% ownership in Unitech Wireless, it was in a company that already had a genuine license issued by the Indian government with all necessary approvals. During our own due-diligence process we found no reason to believe that the license was not awarded in accordance with the guidelines set by the authorities.
“The investment was made into the operating company and not to its promoters. This is the equity that has been used as working capital to fund the establishment of Uninor as a successful young mobile operator in India.”
Reliance Communications, India’s second-largest mobile operator, and three of its executives have also been named in the charge sheet.
In a statement, Reliance wrote: “As legally advised, the persons so named [Gautam Doshi, Surendra Pipara, Hari Nair] deny all charges, and will defend themselves in the appropriate legal proceedings. These preliminary charges have no impact on the business, operations, and/or licenses of Reliance Telecom, and, even more so, are not connected in any manner to any other of our listed group companies.”
In recent months, several officials have been questioned, and even arrested, following allegations of favouritism in the allocation of underpriced 2G spectrum to telecom operators that reportedly cost the government US$40bn.
Some executives have also been questioned for having gained from the irregularities. In mid-February, the CBI quizzed the chairman of the Reliance ADAG conglomerate, Anil Ambani, to determine whether Swan acted as a ‘front company’ for RCom when applications for licences were made.
Etisalat DB’s vice chairman Shahid Balwa was also questioned and arrested in early February before resigning in March. A. Raja stepped down in November and has remained in judicial custody since early February.
In a statement, the CBI stated that “under the Indian Law, the accused are presumed to be innocent till their guilt is finally established after a fair trial,” and that “further investigation in the case continues”. According to reports, the CBI probe is expected to be completed by the end of May.
