» Business » ADAG claims it had only 9.9% stake in Swan

ADAG claims it had only 9.9% stake in Swan

Source: PTI
August 10, 2011 13:13 IST
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Reliance Telecom Ltd, one of the accused firms in the 2G case, on Wednesday told a Delhi court that it did not hold substantial equity in Swan Telecom at the time of grant of spectrum licences.

"No criminal case is made out against Reliance Telecom Ltd as it held only 9.9 per cent equity in Swan Telecom when the latter was granted spectrum licences," the counsel for Anil Ambani promoted telecom company told Special CBI Judge O P Saini. The CBI, in its charge sheet, alleged that Reliance Telecom structured Swan Telecom Pvt Ltd as its front company to circumvent the then existing telecom policy which held existing players ineligible for new licences in the same circle.

The Anil Ambani promoted firm was ineligible to get the spectrum as the Department of Telecom had debarred the
CDMA player from entering into GSM telephony sector, it said.

The counsel for RTL denied CBI's allegation that when DoT allowed use of dual technology, RTL washed its hands off Swan Telecom.

"So far as the guidelines (of DoT) are concerned, they only prohibited an existing telecom company from holding shares in excess of 10 per cent in another telecom company. We held 9.9 per cent stake in Swan telecom and no case is made out against us," the defence lawyer said.

The guidelines did not prohibit Reliance Telecom from funding another telecom company, he said, adding the Reliance group company only held preferential equities in Shahid Balwa promoted Swan Telecom.

"STPL cannot be held as an associate firm of RTL as the latter did not have any say in deciding the board members of STPL," the lawyer said opposing the framing of charges against the firm.

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