They accepted illegal gratification of Rs.549.96 crore in the garb of share premium: FIR
The Central Bureau of Investigation's new FIR on the 2G spectrum scam has levelled serious allegations against the former Telecom Minister Dayanidhi Maran, his brother and Sun TV network head Kalanithi Maran, and Malaysian business tycoon and head of Maxis Communications T. Ananda Krishnan of coercing C. Sivasankaran, former owner of Aircel Televentures, to sell his equity in Aircel. Mr. Dayanidhi Maran denied Mr. Sivasankaran's company seven pending UAS licences, 2G spectrum in various circles, and Point of Interconnection facility from the State owned BSNL.
The CBI pegged the illegal gratification that accrued to the Maran brothers at Rs.549.96 crore, through the purchase of Sun Direct TV shares by Astro All Asia Networks Plc. (a related company of Maxis Communications) at a “highly inflated” rate.
The FIR was annexed with an application moved by the CBI in the special court, hearing the 2G spectrum scam cases, seeking warrants to search nine residential/official premises including the residences of the Maran brothers.
“Enquiry has brought out that the active intervention of Mr. Dayanidhi Maran and Mr. Kalanithi Maran in restricting the business environment for the Siva Group, change of ownership to Maxis Communications, and undue favours post this change were [done] for mala fide considerations. An illegal gratification of Rs.549,96,01,793 was accepted as a quid pro quo through his brother Kalanithi Maran in the garb of share premium invested in Sun Direct TV by South Asia Entertainment Holdings (a fully owned subsidiary of Astro All Asia Networks Plc.),” the CBI alleged.
“Mr. Dayanidhi Maran by abusing his official position deliberately caused undue delays and denials of legitimate requests of Dishnet DSL (Aircel), rendering disservice to Dishnet DSL, and paved the way for Maxis Communications to acquire Aircel Televentures from Mr. Sivasankaran. Enquiry has also revealed that Mr. Dayanidhi Maran and Mr. Kalanithi Maran, apart from being brothers, also have business associations for long.”
After Mr. Maran took over as Telecom Minister on May 26, 2004, trouble began for Aircel with the sale of two of its operational companies to raise money to invest in new licences being stalled by the Minister. Approval for this sale was sought on June 28, 2004, but Aircel finally withdrew this application March 7, 2005, without getting the approval.
Though Aircel was unanimously recommended for issuance of Letters of Intent for two circles in Uttar Pradesh, the CBI alleges Mr. Maran “retained the file with him for 44 days” and sought clarifications on “frivolous and uncalled for objections,” though no such queries were raised for two other companies whose LoIs were issued at the same time.
The process of grant of the UAS licences and allotment of the 2G spectrum to the Aircel was again blocked by Mr. Maran on the ground that show-cause notices had been issued to the company. Despite legal opinion that the notices should be de-linked from the issuance of the spectrum, the Minister did not back down until the Aircel ownership changed hands. The CBI enquiry revealed that Mr. Maran had held up the allotment of spectrum to Dishnet DSL in Bihar until the Aircel-Maxis deal was reached.
The CBI alleged that the Maran brothers facilitated the Aircel-Maxis deal and that on November 12, 2005, Mr. Sivasankaran had a meeting with Mr. Kalanithi Maran at which he was told “to sell 100 per cent equity of Aircel to Maxis only.” “The same day, he [Sivasankaran] received a call from Mr. Dayanidhi Maran directing him to sell 100 per cent equity of Aircel and assuring him that he[Dayanidhi] would clear the deal.”
The CBI enquiry found that the monetary transaction relating to Astro All Asia Networks Plc. buying shares in Sun Direct TV happened in tranches from 2005 to 2008 and that Sun Direct TV's valuation was “highly inflated.” Though a non-operational company with no business investments till then, it was valued higher than Tata Sky, the market leader.
Keywords: 2G scam, Aircel-Maxis deal, CBI probe, Maran brothers, Malaysian business tycoon, T. Ananda Krishnan, C. Sivasankaran, Aircel
Let us not transgress from the core issue and traverse into bylanes. The focal point is there has been arm twisting and there has been illegal gratification. This is sufficient to put both the KD brothers behind bars. In fact such action will be welcome by even the DMK cadres. Venkatesh
Looks like a CBI ploy is in the making to rename SUN TV as Tata SUN TV like what has happened to Satyam Computer Services being renamed Mahindra Satyam. Someone sows the seed and works hard to build and yet another is in the waiting to bid and takeover without much ado. You wait for Anandakrishnan to invest close to USD 8 billion and increase the subscriber base to 50 million and and then jump on him with unnecessary allegations. Surely there is going to be a huge backlash on Indian-based companies in Southeast Asia. Even now not many of us are keen and intent to do business with Indian companies. The general belief is that they operate on a win-lose SWOT whereas European, US and Chinese companies work on an win-win SWOT. We admire AK (Anandakrishnan) and his business acumen and surely we are not going let the CBI ride on as though they are Interpol in the making.
These people are not here to benefit the common man but to take advantage of their post to increase their asset and securing their future as well.They should not be left open and harsh punishment should be given to stop this type of crime.
The Hindu should put its own comments on these issues. A minister abused his position and became 17 th richest person in India in a short span of 10 years. The Prime minister may be a good person, that is not enough to understand and act on these white collared criminals.
Quite possibly this armtwisting had happened. But, this is conjectural till strong circumstantial evidence can be brought out and the Marans can't show a sufficient defense. Unless CBI establishes that around the same time, other groups got the licences they wanted; or several other groups were also put in a denial followed by inexplicable related transactions (like highly priced shares), it will be difficult for a court to accept the CBI claim.
It is high time that both Maran brothers are taken into custody as was done to A Raja et al on the basis of the FIR filed by the CBI and put in prison. Any delay or dodging the issue will be construed by the public that the government is not persuing the case fairly ,properly and promptly.
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