  Amid confusion over the conflicting interpretations of the Law Ministry defining the term ‘associate’, Department of Telecommunications (DoT) is likely to go ahead with cancellation notice of 13 licences of Etisalat DB telecom (formerly Swan Telecom). This is based on the DoT’s interpretation of the Law Ministry report that Sawn was an associate of Reliance Telecom Ltd while applying for spectrum.
Swan is under CBI scanner for its role in 2G spectrum allocations case. The agency on Monday refused to give clean chit to Anil Ambani in case related to transfer of funds to Swan.
This has created confusion as legal experts and other interpretation of Law Ministry report does hint at Swan and Reliance as being associate companies.
Reliance and Swan on the other hand do not agree with the CBI’s theory that that Tiger Traders, which held a majority stake in Swan, was an “associate” of Reliance. The rules don’t allow a mobile phone company to own more than a 10% stake in two telcos operating in the same circle.
Three senior Reliance Group officials and the promoters of Swan Telecom are in jail in the 2G spectrum case.
But it is still not clear that which direction the 2G probe will take in the light of DoT’s plans to issue notice to Etisalat. |