The “ill-conceived” design of the first-come-first-served (FCFS) policy to be followed by former Telecom Minister A. Raja in the allocation of 2G spectrum was known to Swan Telecom and Unitech Wireless three months in advance as they were ready with demand drafts for the purpose, the CBI has said.

The agency, in its charge sheet, said the officials of Department of Telecom (DoT) had “selectively” leaked the information regarding the issuance of Letter of Intent on January 10, 2008, to these two companies, which were ready with the amount and were able to deposit the fee earlier than others.

Swan Telecom, whose promoter Shahid Balwa, already arrested by the CBI, and Unitech Wireless (Tamil Nadu) Pvt Ltd, had kept demand drafts ready since early October-November 2007, the CBI said in the charge sheet filed in court on Saturday.

Sanjay Chandra, Managing Director of the Unitech Wireless, against whom charge sheet has been filed in the case, was known to  Raja since the DMK leader was Environment and Forest Minister as he (Chandra) used to visit him (Raja) in connection with the company’s real estate venture.

The charge sheet said, “Investigation has revealed that the accused persons connected with Swan Telecom Pvt Ltd and Unitech Ltd, had prior knowledge of ill-conceived design of first-come-first-served process and had been keeping the demand drafts ready since early October-November 2007 itself.”

Swan Telecom Pvt Ltd got first Financial Bank Guarantee (FBG) and Performance Bank Guarantee (PBG) made for two circles as early as in first-half of November 2007.

“The first manifestation of the knowledge of M/s Swan Telecom about the manner in which the policy shall be implemented is seen in the fact that Swan Telecom Pvt Ltd applied to Punjab National Bank for loan as early as in October 2007 and mentioned that the demand drafts would be required at a very short notice as these are required to be deposited as soon as the LoI would be issued,” the charge sheet said.

Regarding Unitech, the agency said it had its demand draft ready by October 10, 2007, much before the indications about the FCFS policy came to light through the media in December 2007.

“Unitech wireless (Tamil Nadu) Pvt Ltd also had its demand draft ready by October 10, 2007, even before the decision was taken to call the applicants for the issuance of LoIs by twisting the FCFS policy giving priority for issue of licences to those who complied with LoI conditions first,” the CBI said.

“Even the FCFS policy was implemented by the DoT in a manner, which resulted in wrongful gain to certain companies,” the charge sheet said, referring to these two telecom companies, and added that “favour was allegedly shown to some applicants by way of leaking the information about the date of issuance of letter of intent.”