2G scam: Reliance denies holding equity in Swan Telecom

Anil Dhirubhai Ambani Group (ADAG) company Reliance Telecom Ltd (RTL), an accused in 2G spectrum case, today refuted the allegation in a court here that Swan Telecom was its front company to get licenses for the radio waves.

RTL did not hold any equity in Swan Telecom Private Ltd (STPL), alleged beneficiary of the scam, at the time of grant of spectrum licenses in 2008, Iqbal Chagla, counsel for RTL, told Special CBI Judge O P Saini.

"RTL initially held 9.9 % equity in STPL. However, at the time of grant of licenses to STPL, RTL held no equity in STPL and the charge of conspiracy is untenable," he said.

Opposing framing of charges, the defence lawyer said that on January 10, 2008, when the letters of intent (LoIs) were issued to STPL, Reliance Telecom was "nowhere in picture and Balwas (Shahid Usman Balwa and other promoters of STPL) had taken over the firm."

Reliance Telecom had "sold its preference shares of Swan Telecom to a company belonging to Balwas on October 17, 2007, and 9.9 % equity shares were also sold to Delphi Investment, another independent company", he said.

"No criminal case is made out against RTL as it held only 9.9 % equity in Swan Telecom much before when STPL was granted the licenses," he said.