ED to file charges against Shahid Balwa, DB Realty, A Raja

CNBC-TV18 learns from sources that the Enforcement Directorate (ED) is in the process of finalising chargesheets against the key accused in the 2G scam. In fact the first chargesheet is likely to name Shahid Balwa, DB Realty and A Raja. The second chargesheet that is the supplementary chargesheet is likely to name Unitech.

In the case against Unitech, Enforcement Directorate says that USD 51 million was remitted from India to Unitech Overseas Limited, which is the holding company for Unitech’s overseas investments. This money was remitted for advance for share application but before the shares were allotted, sources add. This money was invested in a Rabobank Yield Enhancement Certificate for duration of one year. In fact, the decision to make that investment was made even before the amount was remitted from India.

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The ED has said that this decision was not supported by a Unitech board resolution and Unitech Overseas Limited did not have any requirements for funds for business development. Also, the Yield Enhancement Certificate was backed by the performance of Pluri Emerging Company, which has been named in other ED cases against ADAG and the Jagan Reddy case.