This Article is From Apr 02, 2011

2G chargesheet: Unitech Wireless, ADAG and Swan accused of conspiracy

New Delhi: Seven trunks arrived in a Delhi court this morning, loaded with thousands of documents, including the first chargesheet filed by the CBI in the 2G spectrum scam.

The 127-page chargesheet lists the first set of individuals and companies that allegedly conspired with former Telecom Minister A Raja, who is now in jail, to illicitly acquire valuable spectrum at under-valued prices in 2008. Mr Raja allocated frequency and mobile network licenses to companies who were not eligible for them; he allegedly got massive kickbacks in return.  He has been charged with conspiracy, forgery, cheating and misusing his public office.

The three companies named today are Swan Telecom, Unitech Wireless and Anil Ambani's Reliance Communications. Three senior executives who work for Mr Ambani's parent company, the Anil Dhirubhai Ambani Group, including Gautam Doshi who is the company's Managing Director, have been accused of conspiracy and abetment of cheating.

Till today, the CBI had in court singled out two companies - Swan and Unitech Wireless - for being the biggest beneficiaries of Mr Raja's swindle. Both companies have their roots in real estate and created new telecom firms to acquire mobile network licences.  Today, the CBI said that Unitech "fraudulently concealed critical information" to disguise the fact that it was ineligible for a license.  Swan, on the other hand, is described as a front for Reliance.  The chargesheet says Swan was set up "out of the funds of Reliance" to allow Mr Ambani's company to access more spectrum and resources than was legally allowed for a single company

Shahid Balwa, the promoter of Swan, is already in jail for routing a Rs. 200-crore kickback to Mr Raja. The money landed at a TV channel in Chennai that is owned by the wife and daughter of M Karunanidhi, the Chief Minister of Tamil Nadu and the head of Mr Raja's party, the DMK.

Mr Balwa's partner, Vinod Goenka, is known to be close to Agriculture Minister Sharad Pawar. Mr Goenka, like Mr Balwa, is now accused of conspiracy and cheating.

The Chairman of Unitech Wireless, Sanjay Chandra, has been charged with conspiracy and cheating. Mr Chandra, according to the CBI, was aware that his company was ineligible for a licence; the agency believes he played a key role in Mr Raja's scheme to advance the deadline for applications for licenses - a decision that benefited Mr Chandra's company, among others.   The CBI claims Mr Raja manipulated the first-come first-policy "to benefit Sanjay Chandra, MD of Unitech Ltd...accused Shahid Balwa, Vinod Goenka and Swan Telecom Pvt Ltd."    The issue, according to the CBI, is this: Mr Raja arbitrarily advanced the cut-off date, but because Swan and Unitech executives had plotted this with him, they had a headstart in showing up first with their cheques to pay for their licenses.

A statement from Unitech Wireless issued today said, "We reiterate that Uninor (Unitech Wireless) obtained the telecom licenses along with 8-9 other players in 2008, after complying with the applicable DoT guidelines at a fee prescribed therein. We maintain that neither Uninor (Unitech Wireless) nor any of its officials have done anything inappropriate or illegal." (Read: Uninor's statement)

Three executives from Mr Ambani's ADAG group, including Gautam Doshi, who is the group's Managing Director, are accused of abetment to cheating. Explaining their role, the CBI says,  ""In January-February 2007, accused Gautam Doshi, Surender Pipara and Hari Nair in furtherance of their common intention to cheat the DoT, structured/created net worth of company Swan Telecom Pvt ltd out of funds arranged from Reliance Telecom Limited."

The CBI claims Reliance tried to conceal its stake in Swan.  "They structured the stake holdings of Swan in a manner that only 9.9% equity was held by Reliance and rest 90.1% was shown as held by Tiger Traders although the entire company was held by Reliance ADAG... investigations have disclosed that day-to-day affairs of Swan and Tiger were managed by the three accused."

Two former senior bureaucrats, Sidharth Behura and RK Chandolia, who worked closely with Mr Raja when he was Telecom Minister, are included in the chargesheet for misusing their public offices.

The CBI has promised to file supplementary chargesheets naming more individuals and companies in April and May.
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