Reliance entirely funded Swan Telecom, says CBI

Records of bank transactions showed Reliance Telecom Limited (RTL) propped up Swan Telecom Private Limited (STPL) and pumped money into it to make it eligible for telecom licences, the CBI told a special court here on Wednesday.

The RTL pumped money into the STPL through its various other subsidiaries, Special Public Prosecutor Anand Grover said, advancing the final arguments in the 2G spectrum allocation case.

“Swan Telecom did not have equity worth to be eligible for UASL,” the CBI counsel said, contending the transaction of money, originating from RTL and reaching to STPL through its subsidiary companies, was completely “non-genuine”.

The bank transactions between these firms showed that money flow started from RTL, went through its various subsidiaries to STPL and later returned to RTL, he added.

The investigation agency had earlier told the Special CBI Judge O P Saini that RTL directly transferred Rs 28.29 crore through RTGS (real-time gross settlement systems) to STPL, which was a composite amount for the equity as well as preferential shares.

STPL misrepresented facts in the certificate for compliance of clause 8 of UASL guidelines as it neither disclosed that Tiger Traders Private Limited was a company of Reliance nor explained what was the actual relation between these companies, it had charged.