Indian authorities have arrested Shahid Balwa, the managing director of real estate group DB Realty and vice chairman of telecom JV Etisalat DB, on allegations of wrongdoing in the 2G scam scandal, according to reports.
Early February, India’s Central…
Indian authorities have arrested Shahid Balwa, the managing director of real estate group DB Realty and vice chairman of telecom JV Etisalat DB, on allegations of wrongdoing in the 2G scam scandal, according to reports.
Early February, India’s Central Bureau of Investigation (CBI) said that Etisalat DB and Uninor both benefited from the 2G scam scandal. The list reportedly includes other companies, but these were not named during questioning of former telecom minister A. Raja by the CBI.
Raja stepped down in November last year following allegations of favouritism in the allocations of underpriced 2G spectrum to telecom operators more than two years ago, which reportedly cost the government US$40bn. In early February, the CBI arrested Raja along with two other officials.
In a statement sent to TelecomFinance before the arrest of Balwa, an Etisalat DB spokesperson said: “We wish to inform you that Etisalat DB is not party to the matter referred to, before the Court. Therefore it is not pertinent for us to offer a comment at this time. Etisalat DB is committed to the Indian market and will continue, as always, to provide any necessary and possible assistance to the Government Authorities.”
Etisalat DB could not be reached for comment since the arrest of its executive.
A Telenor Group statement, also sent to TelecomFinance when Raja was quizzed, read: “As we understand, today’s comment was part of a custodial argument and not a judgment of the court. Also, therefore, we would not comment on an ongoing case and one of which Telenor Group is not a part of. We would like to reiterate that these investigations are into matters that happened before Telenor Group entered into India. Our investments are in reliance of a bona fide licence awarded by the Government at the time. We would have no reason to believe that the license would be awarded in any other way than in accordance with the guidelines set by the Indian authorities.”
Etisalat DB Telecom is a JV between UAE-based Etisalat and India’s DB Group, while Uninor is a JV between Norwegian Telenor and Indian real estate developer Unitech.
