New Delhi:
The Enforcement Directorate, that's probing the 2G scam, has made a detailed presentation before the Joint Parliamentary Committee in which it has established how funds flowed to Kalaignar TV.
The ED says 200 crores that was given to Kalaignar TV by Shahid Balwa's firm was ploughed back to buy real estate.
It also said companies like Swan, Loop and S-Tel that were given licences had flouted the Foreign Exchange Management Act.
The ED says Swan disguised foreign investment as domestic to remain within the FDI cap.
It claims Swan exceeded the FDI cap of 49% but didn't get necessary clearances from the Foreign Investment Promotion Board.
The ED further says that Swan over-evaluated shares to remain within the FDI cap and that it issued shares to Etisalat Mauritius but didn't reflect the fair price.
Shahid Usman Balwa, promoter of DB Realty and Swan Telecom (now Etisalat DB) was arrested on February 8 during investigations into the case. He is currently lodged in Tihar Jail.
Shahid is alleged to be one of the main beneficiaries of the 2G scam with his firm, Swan Telecom, having been allotted licences for valuable spectrum at throwaway prices by former Telecom Minister A Raja as a part of a criminal conspiracy.