The Enforcement Directorate, which is investigating alleged irregularities in allocation of 2G licences in 2008 by Telecom Minister A. Raja, has informed the Supreme Court that it has already initiated probe against firms suspected to have violated FEMA (Foreign Exchange Management Act).
“The ED has already initiated investigation for alleged FEMA violation on July 27 against M/S Loop telecom Ltd and Essar Group based on specific written complaints,” the directorate said in an affidavit.
The four-page affidavit, filed in compliance with the September 13 order of the apex court, said the ED would like to file the status report into the investigation in a sealed cover as “the disclosure of the facts” may not be in the interests of the ongoing probe at this stage.
The ED said it was not filing a detailed affidavit and maintained, like CBI, that the probe was being conducted in a fair and impartial manner. It added that at this stage it was not in a position to deny or agree with the allegations made in the allocation of 2G spectrum and licences.
“...my (ED) not filing detailed affidavit at this stage may not be deemed to be admission of any of the contentions urged which I hereby deny. I further beg to submit that the investigations are being carried out in a fair and impartial manner,” said the ED officer who filed the affidavit.
The case pertains to alleged scam in connection with the Rs 70,000-crore allotment of 2G spectrum licences by Mr. Raja.
Along with Mr. Raja, the names of certain public servants, middlemen and corporate lobbyist Nira Radia, have also surfaced for their alleged involvement in the conspiracy for granting Unified Access Service (telecom) licences.
The ED affidavit said the alleged FEMA violations by Loop Telecom, was being looked by the ED on the basis of specific written complaints.
The agency further submitted it has already registered Enforcement Case Information Report (ECIR) on March 9 this year, under Prevention of Money Laundering Act, on the basis of the FIR registered by CBI in the spectrum allocation scam.
On September 13, the Supreme Court had sought responses from the Centre, Raja, CBI, ED and income tax department.
CBI has filed the response asserting that it was probing in a “fair and impartial” manner the alleged irregularities but was not in a position at this stage to deny or agree with the charges. It placed the status report on the investigation in a sealed envelope.
Mr. Raja, his ministry and others are yet to respond.
