Balwa seeks stay on his trial

Seeking immediate stay on proceedings against him in 2G-spectrum trial, Swan Telecom promoter Shahid Balwa cited a note by the ministry of corporate affairs (MCA) stating his company is not an associate of Reliance Telecom.

Seeking immediate stay on proceedings against him in 2G-spectrum trial, Swan Telecom promoter Shahid Balwa cited a note by the ministry of corporate affairs (MCA) stating his company is not an associate of Reliance Telecom.

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The Central Bureau of Investigations had chargesheeted Balwa and his telecom firm, for forging his application in the allocation of 2G-spectrum licenses. The agency alleged it was a face for Reliance telecom, which had already availed the 2G licenses, and it was promoting Swan to get more similar licenses.

Majeed Memon counsel for Balwa said, “As per a news report, the MCA told CBI that Swan Telecom, now Etisalat DB, and Loop Telecom were not associates of Reliance Telecom and Essar respectively."

Balwa’s counsel told the special CBI judge OP Saini that if this is the existing position, then by which standards is CBI asking to frame charges. The trial and framing of charges be stayed forthwith, he said.

Memon said, "The MCA said the Companies Act does not define the term 'associate' and as per the accounting standard, Swan cannot be held an associate of Reliance Telecom.” The CBI had alleged that it was Balwa and former telecom minister A Raja who conspired to deprive Tata of 2G licenses.