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Policy & Regulation
2G scam: CBI questions telecom firms’ top executives
TT Correspondent |  |  25 Feb 2011

The Central Bureau of Investigation (CBI) interrogated top executives of several telecom firms named in the so-called second-generation (2G) telecom spectrum allocation scandal.

Tata Realty and Infrastructure Ltd (TRIL) chairman R.K. Krishna Kumar and managing director Sanjay G. Ubale, Spice Telecom managing director Dilip Modi, Loop Telecom Pvt. Ltd chief executive Sandip Basu, Shiva Group chief executive V. Srinivasan and S Tel chief executive Shamik Das were questioned at the CBI’s headquarter in New Delhi. These companies have been linked with alleged irregularities in the allocation of 2G spectrum and licences in 2008. “They were confronted with documents and facts,” said a CBI official, requesting anonymity.

Ubale and Kumar were asked about the details of a Rs.1,600 crore loan Tata Realty gave to Unitech Ltd when the spectrum was being awarded. Soon after getting licences for 22 telecom operating areas for Rs.1,658 crore, Unitech promoters sold a 67.25% stake to Norway’s Telenor ASA for Rs.6,120 crore.

Basu of Loop Telecom, which was awarded 21 licences, was asked about his company’s links with the Essar Group. Prashant Ruia, chief executive officer of Essar Group, has earlier been asked if his company used Loop as a front in getting licences.

“We have already questioned S Tel officials regarding Rs.100 crore transfer from their accounts,” said a second CBI official, who also requested anonymity. “The money finally reached Kalaignar TV. We suspect it’s a kickback in lieu of licences issued to them.”

Kalaignar TV is owned by persons close to the leadership of the Dravida Munnetra Kazhagam (DMK), a key ally of the Congress party in the United Progressive Alliance government at the Centre. DMK member and former telecom minister A. Raja, during whose tenure the 2G licences were awarded, is in jail.

An S Tel spokesperson said: “S Tel has provided all required information and documents that CBI had asked for.”

Phone calls and emails sent to other companies were not answered.

    
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25 Feb 2011(IST)  
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