The Vigilance Cell of the DoT has clubbed the demand for investigation into alleged ownership connections between Reliance Communications and Swan (now Etisalat DB). The demand was made by Rajya Sabha MP, Bharatkumar Raut.

The MP had alleged that certain officials of DoT had helped Swan Telecom receive UASL licence in spite of the company violating rules and regulations of the land. The MP had demanded an investigation into how UASL was granted to Swan even as it was alleged to be part of ADAG.

The Vigilance Cell of the DoT now claims that the questions and allegation raised by the MP in a letter dated July 29, 2009 consists of queries which are any way being investigated following directive by the CVC (Chief Vigilance Commission) to do so.

The Vigilance Cell points out that the letter said to be in the name of the MP is without any signature and the envelope in which the letter was sent bears address of A Roy, Feroz Shah Marg, New Delhi.

DoT says that in spite of this it ordered investigation into the complaints as per the provisions of the CVC pertaining to unsigned letters.   

The DoT sums up the demand for investigation by stating that it is already conducting investigations over the following issues:

1)      Grant of UASL to Swan which is allegedly owned by ADAG.

2)      Complaints of two MPs regarding grant of licence to Swan.

3)      Sale of stake by Swan to Etisalat at a higher price.

The ADAG claims to have completely existed from Swan. It earlier had 9.9% stake in the firm. But repeated allegations have arose terming that the exit of RCom from Swan is only an eyewash with the ultimate owner being ADAG.

Interestingly, Swan has awarded a $2.2 billion wireless network infrastructure to RCom’s subsidiary, Reliance Infratel.