New Delhi:
After Kapil Sibal and his Telecom Ministry, it's now the turn of the Ministry of Corporate Affairs to question the Comptroller and Auditor General's (CAG) report on the 2G scam.
Speaking to NDTV, a senior functionary in the ministry argued that the CAG's conclusion on Swan being a front company for Reliance-ADAG is incorrect.
The CAG, in its report, had pointed out that at the time of applying for license, the equity stakes of Reliance Telecom Limited in SwanTelecom Private Limited was 10.71 percent.
And this made Swan an ineligible applicant. Telecom Ministry rules did not allow existing players like Reliance to have equity in a new company above 10 percent.
But the Corporate Affairs Ministry says the CAG findings may not be accurate.
Sources in the ministry say that CAG clubbed the 1 percent preference share and bonds that Reliance Telecom held in Swan with its equity. They say preference shares and bonds cannot be taken as equity.
And that is why, in January this year, the ministry said Reliance Telecom never owned more than 9.90 percent shares in Swan when asked for it opinion on the case by the Telecom Ministry.
Sources say when Swan got license, Reliance did not own any share. And the Corporate Affairs Ministry took that into account that this argument is very similar to that made by Reliance.
The ministry says at the moment there is no proposal to review their decision despite the CBI probe.
The Department of Telecom (DoT) has forwarded the Swan file to CBI and the investigative agency is looking at this aspect right now.
The Corporate Affairs Ministry argues that it was only asked to examine Swan's share holding pattern and not the source of funding for the company. But with Shahid Balwa in custody and ADAG and Swan's links being scrutinised closely by the CBI, the matter way well go beyond the technicalities of who owns what on paper.
Speaking to NDTV, a senior functionary in the ministry argued that the CAG's conclusion on Swan being a front company for Reliance-ADAG is incorrect.
The CAG, in its report, had pointed out that at the time of applying for license, the equity stakes of Reliance Telecom Limited in SwanTelecom Private Limited was 10.71 percent.
And this made Swan an ineligible applicant. Telecom Ministry rules did not allow existing players like Reliance to have equity in a new company above 10 percent.
But the Corporate Affairs Ministry says the CAG findings may not be accurate.
Sources in the ministry say that CAG clubbed the 1 percent preference share and bonds that Reliance Telecom held in Swan with its equity. They say preference shares and bonds cannot be taken as equity.
And that is why, in January this year, the ministry said Reliance Telecom never owned more than 9.90 percent shares in Swan when asked for it opinion on the case by the Telecom Ministry.
Sources say when Swan got license, Reliance did not own any share. And the Corporate Affairs Ministry took that into account that this argument is very similar to that made by Reliance.
The ministry says at the moment there is no proposal to review their decision despite the CBI probe.
The Department of Telecom (DoT) has forwarded the Swan file to CBI and the investigative agency is looking at this aspect right now.
The Corporate Affairs Ministry argues that it was only asked to examine Swan's share holding pattern and not the source of funding for the company. But with Shahid Balwa in custody and ADAG and Swan's links being scrutinised closely by the CBI, the matter way well go beyond the technicalities of who owns what on paper.
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