Reliance Communications head Anil Ambani on Wednesday appeared before the Central Bureau of Investigation (CBI) for giving clarifications in connection with the agency’s ongoing probe into the alleged 2G spectrum scam.
Mr. Ambani was questioned at the CBI headquarters for nearly two hours during which the investigators asked him on certain documents pertaining to Swan Telecom of the DB Realty group, whose promoter Shahid Usman Balwa is at present in the CBI custody.
CBI sources said that Mr. Ambani was asked to appear before the agency as his company Reliance Communications was one of the beneficiaries of the 2G scam and the CBI has been questioning senior functionaries of all new operators that got licenses.
However, in a statement issued by R Com’s parent concern Anil Dhirubhai Ambani Group (ADAG) Group said that Mr. Ambani has not been summoned and that he has merely met CBI officials, during a weekly visit to Delhi, to clarify on ``ongoing issues.’’
The statement said: ``Neither Reliance Telecom, nor RCOM, nor any Reliance ADA Group individual, company or affiliate held even a single share in Swan Telecom Ltd., at the time of grant of the 2G license to them in January 2008, or at any time thereafter. Neither Reliance Telecom, nor RCOM, nor any Reliance ADA Group individual, company or affiliate has obtained any monetary gain or other benefit, directly or indirectly, from the grant of 2G license to Swan Telecom in January 2008.’’
However, the Comptroller and Auditor General of India (CAG) audit report titled ``Issue of Licences and Allocation of 2G Spectrum’’ has clearly mentioned that Swan Telecom, which got 2G licences, appeared to be acting as a front company for Reliance Telecom, a wholly owned subsidiary of Reliance Communications or RCom. It also said that it was evident that at the time of applying for Unified Access Service (UAS) licences, the equity stakes of Reliance Telecom Ltd in Swan Telecom was 10.71 per cent, which was against the prescribed norms.
The CAG report said that Swan Telecom Private Limited while applying for UAS licenses in 13 service areas was ``acting as a front company on behalf of RTL and their application was in effect against the intent and spirit of the UAS licensing guidelines.’’
Reliance Communications is also under CBI scanner for allegedly deriving undue benefits in dual technology. Three compnaies – Reliance Comunication for 20 service areas, Shyam Telelink for Rajasthan service area and HFCL Infotel for Punjab service area had applied for permission for using GSM technology in 2006.
Since the combination of technologies (CDMA, GSM and / or any other) under the same licence was not permitted, DoT had not acceded to their request till April 2007. Based on the recommendations of Telecom Regulatory Authority of India (TRAI), the decision for use of alternate technology was taken for the first time by the DoT on October 17, 2007. However, the decision was taken without referring the matter to the full Telecom Commission even when it involved allocation of spectrum in 2007 at the 2001 price.
CAG report found that Reliance Communication Ltd. had complied with the requirements for permission to use dual technology on October 19, 2007 itself by depositing the non refundable entry fee of Rs. 1645 crore for 20 service areas through their sister concern Reliance Infocomm Ltd. The company could acquire the right for allocation of 2G spectrum in 20 service areas on the day the policy itself was announced.
It said the process followed by the DoT while introducing access to the dual technology to the existing telecom operators in India lacked ``transparency and fairness.’’ The CAG report found that ``equal opportunity was denied to other similarly placed operators who could apply for use of dual technology, only after the formal announcement of the policy.’’
