2G scam: CBI gets transit custody of Shahid Balwa

February 9th, 2011 - 2:07 pm ICT by ANI  

New Delhi, Feb 9 (ANI): A special Central Bureau of Investigation (CBI) court on Wednesday granted three day transit custody of Dynamix Balwas (DB) group Managing Director Shahid Balwa to the CBI in connection with the 2G scam.

Balwa was arrested on Tuesday night from his Bandra residence in Mumbai and will be sent to Delhi later today.

Before being produced in the court Balwa was taken to St George Hospital for a medical check up.

Balwa-promoted DB Reality floated Swan Telecom. Raja allegedly helped Swan bag 2G licences for 13 circles, including Mumbai and Delhi, for Rs 1,537 crores but Swan sold 45 per cent shares to the UAE telecom giant Etisalat for approximately Rs 4,500 crore within months of bagging the spectrum.

As per reports, the CBI has proof of Balwa’s involvement in receiving and channeling money for A Raja.

Also, the Enforcement Directorate had trailed Rs 214 crore allegedly routed by Balwa and DB Realty to Chennai-based Kalaignar television, a channel promoted by family members of DMK leader and Tamil Nadu Chief Minister M Karunanidhi.

Balwa is the fourth high profile person arrested in connection with the scam.

The others arrested in connection with the case are former Telecom Minister A Raja, his personal secretary RK Chandolia and former telecom secretary Siddharth Behuria.

Raja was forced to resign from the Union Cabinet last year after the Comptroller and Auditor General of India (CAG) faulted him for undervaluing spectrum to favour companies who were largely ineligible for 2G spectrum, and added that the government had probably lost Rs.1.76 lakh crore in estimated revenue. (ANI)

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