No link with Swan Telecom: RCom

Reliance Telecom, one of the accused companies in the 2G-spectrum scam, on Tuesday told a Delhi court that Swan Telecom was never its front company to secure licences. HT reports.

Reliance Telecom, one of the accused companies in the 2G-spectrum scam, on Tuesday told a Delhi court that Swan Telecom was never its front company to secure licences.

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The CBI has chargesheeted Reliance for structuring Swan (also an accused), as its face to circumvent the then existing telecom policy, which held existing players ineligible for new licences in the same circle.

Opposing framing of charges against Reliance Telecom, its counsel Iqbal Chagla told special CBI judge OP Saini that it was not a beneficiary in the scam.

Chagla said: “The CBI chargesheet states Reliance Telecom ceased to have connection with Swan much before licences were issued. At the time of grant of licences to Swan, Reliance held no equity in it, and the charge of conspiracy is untenable.”

“Reliance Telecom was nowhere in the picture when the Letter of Intent (LoI) was issued to Swan. Reliance Telecom had “sold its preference shares of Swan Telecom to a company belonging to Balwa's on October 17, 2007, and 9.9% equity shares were also sold to Delphi Investment, another independent company,” said the RComcounsel.

He said no criminal case was made out against the firm as it held 9.9% equity in Swan

Telecom much before it applied for the spectrum licences. The CBI in its chargesheet alleged that on January 10, 2008, when LoI was issued to Swan, Reliance Telecom had majority equity in it.