Three sons of the late Yusuf Patel, underworld don turned builder, have a stake in DB Realty, whose managing director Shahid Balwa was arrested by the CBI on Tuesday in connection with the 2G spectrum scam, intelligence sources told HT.
The Patel brothers — Abdulla, Adil and Nabil — together own 14% of Neelkamal Tower Construction, which in turn has a 43% stake in Mumbai-based DB Realty, according to documents DB Realty has filed with stock market regulator Securities and Exchange Board of India.
Neelkamal is among DB Realty’s four promoters. Balwa also has a nearly 40% stake in Neelkamal.
The police, however, said the three Patel brothers have no criminal cases against them.
“Because Balwa is under investigation, various agencies will check DB Realty’s finances and the backgrounds of its shareholders, including the Patels,” one source said.
Nabil Patel admitted he and his brothers held shares in Neelkamal but said the stakes were insignificant. The documents show he and Adil each owned 4.66% of Neelkamal while Abdulla owned 4.68%. “I am a mere employee of DB Realty,” he told HT.
Nabil also denied his father had any nefarious links. “He died 18 years ago,” he said. “How could he ever be remotely connected to anybody?”
Investigators arrested Balwa because they claim to have evidence that Swan Telecom, an arm of DB Realty, got telecom licences for 13 circles, including Mumbai and Delhi, in return for kickbacks involving Raja, who has also been arrested.
Soon after winning these licences, Swan Telecom sold 45% of its shares to UAE-based Etisalat for a huge sum.