2G case: STPL was front company of Reliance ADAG, says CBI
New Delhi: CBI on Friday claimed in a special 2G court that Swan Telecom Pvt Ltd (STPL) was a “front company” of Reliance Anil Dhirubhai Ambani Group (ADAG) which infused Rs 28.29 crore to increase its net worth for bagging radio waves for Jammu and Kashmir telecom circle in 2007.
Advancing final arguments in 2G spectrum allocation case, special public prosecutor Anand Grover highlighted the funding of Swan Capital Pvt Ltd, whose name was later changed to STPL, and termed the infusion of Rs 28.29 crore into it as a “sham transaction.”
Advancing final arguments in 2G spectrum allocation case, special public prosecutor Anand Grover highlighted the funding of Swan Capital Pvt Ltd, whose name was later changed to STPL, and termed the infusion of Rs 28.29 crore into it as a “sham transaction.”
“This was a sham transaction to inflate the net worth of STPL as no prudent businessman would like to enter into by buying the preferrential shares of a company which is doing no business. This proves that STPL is a front company of Reliance ADAG group,” Grover said.
Citing STPL’s application for Jammu and Kashmir service area, the prosecutor said STPL was even a “smoke screen” to hide the actual relation between Reliance ADAG and its front company, Tiger Traders Pvt Ltd (TTPL).
“The application clearly shows that clause 8 of the UASL (unified access services licences) guidelines were violated as TTPL had 90.1 percent stakes while Reliance Telecom Ltd had 9.9 percent stake in STPL. It appears that STPL was also a smoke screen to hide the actual relation between TTPL and Reliance ADAG,” he said.
Grover said that STPL had even misrepresented facts in the certificate for compliance of clause 8 of UASL guidelines and did not disclose that TTPL was a Reliance ADAG company or what its actual relation was.
“They (STPL) misled the authorities in the compliance of UASL guidelines. This shows the conduct of applicant (STPL) which becomes relevant during the conspiracy period,” he said.
The final arguments today remained inconclusive and would continue on October 8. CBI had on Thursday alleged in the court that Reliance ADAG had structured front companies to fund STPL to increase its net worth for bagging radio waves.
STPL and its promoters, Shahid Usman Balwa and Vinod Goenka, and three top executives of Reliance ADAG, Gautam Doshi, Surendra Pipara and Hari Nair, are facing trial in the 2G spectrum allocation case along with former Telecom Minister A Raja and others.
All the accused have earlier denied all allegations levelled against them by CBI.
Kindly send reply or comments on this topic to [email protected]
Source:IBNLive
