2G scam: CBI to submit status report in Supreme Court

February 10th, 2011 - 12:27 pm ICT by ANI  

New Delhi, Feb 10 (ANI): The Central Bureau of Investigation (CBI) and Enforcement Directorate will file the status report on the 2G spectrum allocation scam in the Supreme Court on Thursday.

CBI had in September last year promised to file the chargesheet in the case by March 31 this year. However, as per some reports, the investigating agency would not be able to abide by its promise made earlier as it is yet to complete the probe.

The agency is investigating allegations of irregularities in the sale of 2G spectrum and licences, which the government audit CAG said may have been given too cheaply to telecom companies in 2007-08, causing a potential revenue loss of Rs 1.76 lakh crore.

Meanwhile, managing director of DB Realty Shahid Balwa, who was arrested in the 2G scam, will be presented in a special CBI court in Patiala House after 12.30 pm.

A Mumbai court had o Wednesday granted the CBI two-days transit remand of Balwa, who was arrested in Mumbai on late Tuesday.

In its remand application, the CBI said Balwa’s company Swan Telecom (a part of the Mumbai-based DB Realty) allegedly got favours in the spectrum allocation and caused the national exchequer a loss of over Rs.22,000 crore.

It also said Balwa allegedly conspired with private companies to sell to a Gulf firm at a huge profit the 2G spectrum licences Swan Telecom acquired at a cheap rate.

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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