2G scam: Swan a front company of ADAG, CBI says

NEW DELHI: Alleging involvement of Reliance Anil Dhirubhai Ambani Group (ADAG) in the 2G scam , the CBI on Tuesday claimed in a special court that Reliance ADAG had "infused" thousands of crores in Shahid Balwa's Swan Telecom Pvt Ltd (STPL), which allegedly was a front company to bag 2G licences.
Advancing final arguments in the case, the CBI said the front company was not eligible in March 2007 to apply for the radiowaves.

Special public prosecutor Anand Grover submitted that huge amount of money was transferred from Reliance ADAG to STPL through a "circuitous route" to conceal its "true ownership" and it was done to fulfil the net worth criteria of the applicant firm to bag the 2G licences.

"For 13 circles, STPL applied for 2G licences and Reliance ADAG funded thousands of crores in it . A circuitous route was applied to fund STPL to fulfil the eligibility of net worth of STPL," he told Special CBI Judge OP Saini.

Grover contended that although it was shown that Reliance ADAG was holding only 9.9% in STPL and the remaining 90.1% was held by Tiger Traders Pvt Ltd (TTPL), TTPL was nothing but a firm owned by Reliance ADAG. "TTPL's inter-locking with other group companies was made to conceal the true ownership of STPL," Grover claimed.

"It is our case that all these companies were operated by Reliance ADAG and its officials were on the board of directors in these firms and key operations were done by them. Gautam Doshi, Surendra Pipara and Hari Nair (three top officials of Reliance ADAG facing trial in the case) were commanding the structures of these companies," Grover said.

He submitted that it was CBI's case that STPL was a Reliance ADAG company and on the date of application seeking 2G licences (March 5, 2007) STPL was not eligible. The final arguments in the case would continue on July 22. All through, Reliance ADAG has denied the allegation.