2G Spectrum Scam: Govt to issue notices to 85 ineligible licenses
merisarkar news service
New Delhi, November 29, 2010
Swan case referred to MoCA
After a lot of pressure from opposition and huge media criticism finally government seem to be acting against the companies who got spectrum for 2G services at throw away prices in 2008 by furnishing false documents and fake certificates and by bending rules of First come First Served policy of Department of Telecom.
Union telecom minister Kapil Sibal told a press conference in New Delhi on Monday that there are two kind of ineligible companies – first whose own Memorandum of Association and Article of Association don’t allow them to enter into telecom sector at that time but they falsely informed the DoT through self certification that they were eligible to apply for licenses. Second category of those companies that did not have enough authorized share equity to apply for the license and even these cases they just passed a special resolution to the effect and applied for the license.
Telecom minister Mr. Kapil Sibal, an advocate himself, clarified the legal position by citing relevant provisions of the company’s act of 1956 that the increase in authorized share equity would be considered from the date when registrar of companies (RoC) registered it and issued a certificate to that effect.
He said that there is a third category of licensees that did not meet out roll out obligations as per the license conditions. He said there are 119 such licenses and 81 licenses belong to those companies who were ineligible to get the licenses. He informed that the government will issue notices to recover liquidated damages from such companies. He explained that the government will issue notices to companies who got licenses from 2006 onwards.
The companies facing show-cause include Uninor, Etisalat DB, Videocon, Loop Telecom and S Tel.
He also informed that the case of Swan Telecom is referred to Ministry of Corporate Affairs to ascertain whether it was acting as a front company for some other people.
Swan was floated in 2007 and Anil Ambani’s Reliance ADAG group had nearly 10 per cent stake in the company which the company claim to have divested afterwards.
Swan’s share holding pattern has changed four times since incorporation and presently UAE’s telecom giant Etisalat has over 45 per cent stake in it while other nearly 45% stake is with Mumbai’s Realty Company DB Realty.
Swan telecom is now known as Etisalat DB Telecom Private Limited and is under scanner of investigative agencies for various non commercial reasons as well.
Last week, CBI has quizzed its Managing Director Shahid Usman Balwa for two consecutive days in connection with Housing Loan scam.
