2G court holds it has jurisdiction to try Aircel-Maxis matter

The Aircel-Maxis deal "fairly and squarely falls within the description of 2G scam", a special court today said while holding that it has the jurisdiction to try the matter against ex-Telecom minister Dayanidhi Maran, his brother Kalanithi and others.

Special Judge O P Saini passed the order while dismissing the pleas of the Maran brothers and other accused challenging the jurisdiction of the special 2G court to try two cases filed by CBI and Enforcement Directorate (ED) in the Aircel-Maxis deal, claiming that these matters do not directly or indirectly fall into the category of 2G spectrum cases.

The court rejected the contention of the accused that the cases were not covered by "irregularities" directed to be investigated by the Supreme  Court.

"It is a fact that instant cases are based on delay in grant of Letters of Intent (LOIs), licences, spectrum and other regulatory approvals. This delay was unjustifiably long and, as such falls within the meaning of irregularity as explained by the Supreme Court...

Irregularities committed by delaying disposal of applications are well within the sweep of the directions... "Furthermore, irregularities arising out of delay were also adversely commented upon by the CAG as extracted above. Hence, there is no merit in the submissions that these cases are not part of the 2G Scam," the court held.

"The instant cases relate to alleged irregularities committed by delaying processing of applications in violation of time-frame prescribed by the guidelines, which led to further events leading to the filing of the instant cases," it said on the plea that only one matter involved former minister A Raja and other could be termed as a 2G case.

In the case of ED, six pleas challenging jurisdiction of the court was filed by the Maran brothers, Kalanithi's wife Kavery Kalanithi, K Shanmugam, M/s South Asia Entertainment Holdings Ltd, M/s Sun Direct TV (P) Limited and M/s South Asia FM Ltd.

ED had filed the charge sheet against six accused under provisions of the Prevention of Money Laundering Act (PMLA). In the case filed by CBI, the jurisdiction pleas were moved by both the Maran brothers, M/s Sun Direct TV (P) Ltd and M/s South Asia Entertainment Holdings Ltd.

CBI had filed its charge sheet against the Maran brothers, Ralph Marshall, T Ananda Krishnan, M/s Sun Direct TV (P) Ltd, M/s Astro All Asia Networks Plc, UK, M/s Maxis Communications Bhd, Malaysia, and M/s South Asia Entertainment Holdings Ltd, Malaysia and then Additional Secretary (Telecommunications) late Dr J S Sarma.

All the accused persons in both the cases have also moved bail pleas which the court is likely to decide on September 21, the next date of hearing in the case.

The court also dismissed the contention of the accused that there was no loss to the exchequer and by no stretch of imagination these cases could be covered under the 2G scam.

"In the instant cases the allegations are that Dayanidhi Maran, the then MOC&IT, in criminal conspiracy with other accused, abused his official position as a minister and delayed the grant of licences to Siva group of companies and after forcing his exit quickly granted licences to these companies after their acquisition by Maxis Communications through its subsidiaries and in consideration thereof obtained bribe in the form of share subscription in the companies belonging to his family members. The submission, as such, is without merit," it said.

It rejected another contention that the case was based on failure of an on-going commercial transaction between two private individuals and that the entire case was based on the grievances of private individual which could not be designated as part of 2G scam, saying, "Direction has also been issued by the Supreme Court to investigate this part of licencing regime also."

In his plea, Kalanithi Maran had claimed that in these two cases, there were no allegations pertaining to irregular grant of licence to ineligible persons and thereby causing loss to public exchequer and there was no allegation pertaining to blatant violation of terms and conditions of licence, including first-come first-served (FCFS) policy.

Dayanithi Maran had also claimed that terming the present matter as 2G spectrum case will add stigma to his image.

"In the instant cases, there has been no haste in grant of licences, violation of first-come first-served policy, loss to exchequer and other irregularities, as alleged in the 2G scam case arising out of multiple events on January 10, 2008," the accused had said.

Both the agencies, however, had sought dismissal of the pleas, stating that the Special 2G court has full jurisdiction to try the instant cases.

CBI had earlier alleged that Dayanidhi had "pressurised" and "forced" Chennai-based telecom promoter C Sivasankaran to sell his stakes in Aircel and two subsidiary companies to Malaysian firm Maxis Group in 2006.

In ED's matter, special prosecutor N K Matta had told the court that there were money transactions which allegedly showed that SDTPL and SAFL had received Rs 742.58 crore as "proceeds of crime" from Mauritius-based firms in the Aircel-Maxis deal.

ED had claimed that "proceeds of crime" amounting to Rs 549.03 crore and Rs 193.55 crore were received by SDTPL and SAFL, allegedly controlled by Kalanithi Maran, respectively through various Mauritius-based entities.

The ED prosecutor had referred to the details of money transactions between these firms and alleged that SDTPL had received Rs 549.03 crore from Mauritius-based firm M/s South Asia Entertainment Holding Ltd.

ED had earlier alleged before the court that Dayanidhi had generated Rs 742.58 crore through illegal means and there was sufficient prima facie material to proceed against him and other accused in the case.

It had alleged that Dayanidhi had obtained "illegal gratification" of Rs 742.58 crore and the money was "parked" in the firms of Kalanithi by projecting it as untainted.