DB Realty's promoter fails to turn up before CBI
8 Feb, 2011, 01.21AM IST,ET Bureau
http://economictimes.indiatimes.com/latest-news/db-realtys-promoter-fails-to-turn-up-before-cbi/articleshow/7448410.cms
NEW DELHI: Shahid Balwa , the promoter of DB Realty who made a fortune by selling a 45% stake in Swan Telecom to the UAE-based Etisalat in 2009, continued to keep the Central Bureau of Investigation (CBI) waiting on Monday. Balwa, who has been called by the investigative agency for questioning on his alleged links with former telecom minister A Raja, and his party, the DMK, failed to turn up at the CBI headquarters, citing bereavement in his family.
CBI officials believe that Balwa holds the key in unlocking the money trail riddle of the kickback funds that changed hands in return for the allocation of 2G spectrum during Raja's tenure as the telecom minister. His fate will be decided by the CBI on the basis of his interrogation.
The CBI accused the former telecom minister showering largesse on a clutch of telecom companies, including Swan and Unitech, in the distribution of 2G spectrum.
Investigating agencies, probing the alleged irregularity in allocation of 2G licences, are examining a transaction in which over Rs 200 crore was transferred from the Mumbai-based DB group to Kalaignar TV, a broadcaster majority-owned by family members of DMK party chief M Karunanidhi.
The transaction, in which Rs 214 crore was transferred in fiscal 2009-10 from a subsidiary of DB Realty to Kalaignar TV by way of two other companies, entailed an entity, christened Cineyug, picking over 30% stake in the TV channel, pointed out DB Realty's CFO and executive director Asif Balwa.
The deal, however, fell through because of valuation differences and the money had since been repaid, Asif Balwa maintained.
Interests of the investigating agencies, including the CBI and the income tax, have been aroused in the deal because Swan Telecom, the telecom arm of DB Realty, was among the companies that bagged 2G licences in 2008. The ex-telecom minister, they believe, went out of his way to favour Swan Telecom, something that has been highlighted by the CAG in its report on the issue of licences and allocation of 2G by the DoT.
The CAG noted that the priority lists in Punjab and Maharashtra were tweaked deliberately to give undue advantage to Swan Telecom in the allocation of spectrum. "In the Punjab service area, only 15 MHz GSM spectrum was available in September 2008, which was sufficient to meet the demand of only first applicants in the priority list, i.e., HFCL, Idea Cellular Ltd and Unitech Wireless Pvt Ltd.
The request of Idea Cellular Ltd, which was at the second place in the priority list, was, however, not considered on the grounds of its proposed merger with Spice Communications Ltd, which was offering service in the Punjab area. By keeping out Idea Cellular Ltd from the priority list, spectrum was allocated to Swan Telecom, which was on the fourth position on the priority list,'' the CAG report said.
8 Feb, 2011, 01.21AM IST,ET Bureau
http://economictimes.indiatimes.com/latest-news/db-realtys-promoter-fails-to-turn-up-before-cbi/articleshow/7448410.cms
NEW DELHI: Shahid Balwa , the promoter of DB Realty who made a fortune by selling a 45% stake in Swan Telecom to the UAE-based Etisalat in 2009, continued to keep the Central Bureau of Investigation (CBI) waiting on Monday. Balwa, who has been called by the investigative agency for questioning on his alleged links with former telecom minister A Raja, and his party, the DMK, failed to turn up at the CBI headquarters, citing bereavement in his family.
CBI officials believe that Balwa holds the key in unlocking the money trail riddle of the kickback funds that changed hands in return for the allocation of 2G spectrum during Raja's tenure as the telecom minister. His fate will be decided by the CBI on the basis of his interrogation.
The CBI accused the former telecom minister showering largesse on a clutch of telecom companies, including Swan and Unitech, in the distribution of 2G spectrum.
Investigating agencies, probing the alleged irregularity in allocation of 2G licences, are examining a transaction in which over Rs 200 crore was transferred from the Mumbai-based DB group to Kalaignar TV, a broadcaster majority-owned by family members of DMK party chief M Karunanidhi.
The transaction, in which Rs 214 crore was transferred in fiscal 2009-10 from a subsidiary of DB Realty to Kalaignar TV by way of two other companies, entailed an entity, christened Cineyug, picking over 30% stake in the TV channel, pointed out DB Realty's CFO and executive director Asif Balwa.
The deal, however, fell through because of valuation differences and the money had since been repaid, Asif Balwa maintained.
Interests of the investigating agencies, including the CBI and the income tax, have been aroused in the deal because Swan Telecom, the telecom arm of DB Realty, was among the companies that bagged 2G licences in 2008. The ex-telecom minister, they believe, went out of his way to favour Swan Telecom, something that has been highlighted by the CAG in its report on the issue of licences and allocation of 2G by the DoT.
The CAG noted that the priority lists in Punjab and Maharashtra were tweaked deliberately to give undue advantage to Swan Telecom in the allocation of spectrum. "In the Punjab service area, only 15 MHz GSM spectrum was available in September 2008, which was sufficient to meet the demand of only first applicants in the priority list, i.e., HFCL, Idea Cellular Ltd and Unitech Wireless Pvt Ltd.
The request of Idea Cellular Ltd, which was at the second place in the priority list, was, however, not considered on the grounds of its proposed merger with Spice Communications Ltd, which was offering service in the Punjab area. By keeping out Idea Cellular Ltd from the priority list, spectrum was allocated to Swan Telecom, which was on the fourth position on the priority list,'' the CAG report said.
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