Reliance Communications says equity in Swan was within limits

August 10th, 2011 - 3:21 pm ICT by IANS  

New Delhi, Aug 10 (IANS) Reliance Communications Wednesday told a special CBI court on second generation (2G) spectrum allocation case that its holdings in Swan Telecom at the time of award of airwaves was well within the prescribed limits.

“No criminal case can be made out against Reliance Telecom. It held only 9.9 percent equity in Swan Telecom when it was granted spectrum licences,” the counsel for the company, now renamed Reliance Communications, said.

“Swan Telecom cannot be held as an associate company of Reliance Telecom. It also did not have any say in deciding the board members,” the counsel told the special Central Bureau of Investigation (CBI) court presided over by Judge O.P. Saini.

The response was to the probe agency’s charges that Reliance Telecom had co-promoted Swan Telecom as its front company to get past the norms at that time, making all existing service providers ineligible for fresh spectrum in their current areas of operation.

“The guidelines only prohibited an existing telecom company from holding shares in excess of 10 percent in another telecom company. We held 9.9 percent stake in Swan and no case is made out against us,” the defence counsel said.

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