Swan Telecom gets clean chit in 2G spectrum scam
The ministry of corporate affairs has given a clean chit to Swan Telecom (now Etisalat DB) and said Anil Ambani-led Reliance Communication never had more than 9.90% stake in the company.india Updated: Jan 17, 2011 23:09 IST
The ministry of corporate affairs (MCA) has given a clean chit to Swan Telecom (now Etisalat DB) and said Anil Ambani-led Reliance Communication never had more than 9.90% stake in the company.
MCA' response comes in the wake of telecom ministry's request to examine the share-holding pattern of Swan Telecom to ensure the eligibility of the company to get the licence and 2G spectrum in 2008.
In its report, the MCA has said that with effect from January 31, 2006, Reliance Communications had no equity share holding or voting rights in Tiger Trustees Private Limited, Swan Advisory Services Private Limited and Swan Infonet.
The ministry gave its report to the Department of Telecom (DoT) after getting details from the Registrar of Companies (ROC), Mumbai.
Swan Telecom had bagged the licence in January 2008 for 13 circles and then expanded it equity base by inducting UAE-based Etisalat which now holds over 45% stake in the joint venture.
Telecom minister Kapil Sibal had ordered an enquiry in the stake-holding pattern of the company following allegations that it was the front company for RCOM.
Government auditor CAG had also alleged violation of substantial equity clause in its report on the issue.
Apart from having 9.90% equity, the MCA said Reliance Telecom also invested Rs 992 crore in preference shares but these shares never carried any voting rights.
The preference shares were also divested on October 17, 2007, it said.
The ROC further clarified that "the Memorandum or Articles of Association or other documents filed with his office by Swan Telecom or Tiger Trustees do not contain any provision which could provice Reliance Communication or Reliance Telecom or any other person with any special rights or privellages entitling them to control Swan Telecom..."
Swan Telecom (Etisalat DB) has been served show cause notice seeking an explanation that why its licence should not be cancelled in view of the allegations leveled against it.