Anti-corruption watchdog Central Vigilance Commission (CVC) has summoned all files relating to Swan Telecom from the department of telecommunications (DoT) for various investigations.
In particular CVC wants to know the shareholding pattern of the company and how it has changed in the past. This is apart from the ongoing investigation on allotting spectrum to new telecom players.
“CVC’s technical examiner is looking into the files of Swan,” Central Vigilance Commissioner Pratyush Sinha told Hindustan Times. “We found that the allocation of 2G spectrum to private companies, including Swan, on a ‘first-come-first-serve’ basis was not transparent and that DoT was selective in following TRAI recommendations.”
Swan is majority owned by Mumbai-based Dynamix Balwas group, which is primarily into real estate and hospitality business. Earlier, Anil Amabni’s ADAG group owned 9.9 per cent stake in it. In December 2007, ADAG sold its stake to a Mauritius-registered infrastructure fund.
As per the application submitted by Swan to DoT in March 2007, Tigers Traders Pvt Ltd held 90.1 per cent equity and Reliance Telecom 9.8 per cent. Nine months later, Swan told DoT that Reliance Telecom had divested its entire stake.
In September 2008, Swan sold 45 per cent equity for $900 million to Etisalat by issuing fresh shares. This took the total value of the company — which has nothing but a licence to operate mobile and fixed line telephone services in 13 high-potential circles, for which it paid Rs 1,539 crore — to $2 billion (Rs 9,200 crore).
Even after nearly 15 months of acquiring the licences, Swan has not yet started setting up network for providing services.