2G scam: Court denies bail to Shahid Balwa, his two associates

New Delhi, May 24 (PTI) A Delhi court Tuesday
dismissed the bail pleas of Swan Telecom promoter Shahid Usman
Balwa, his cousin Asif Balwa and their associate Rajeev
Agarwal in the 2G spectrum allocation case.
"All the three bail pleas are dismissed," Special
Central Bureau of Investigation (CBI), India's premier
investigation agency, Judge O P Saini said.
Asif and Rajeev are the directors of DB Realty group
firm--Kusegaon Fruits and Vegetables Pvt Ltd which was
allegedly used in a "circuitous manner" for transfer of Rs 200
crore as a kickback to DMK-run Kalaignar TV Pvt Ltd.
They are accused of playing key roles in the transfer
of Rs 200 crore bribe to Kalaignar TV through various firms
promoted by Shahid Usman Balwa.
Shahid was arrested on February 8 while Asif and
Rajeev were arrested by the CBI on March 29 and they are
currently in Tihar Jail.
Rajeev is also the director of Conwood Constructions
and Developers Pvt Ltd (a partner of Dynamix Realty).
Shahid allegedly is direct beneficiary of the 2G
spectrum allocation scam with his firm Swan Telecom having
been alloted the spectrum licence as per a criminal conspiracy
hatched by him along with former Telecom Minister A Raja and
others.
While opposing the bail pleas of the trio, Special
Public Prosecutor U U Lalit had submitted that Dynamix Realty
acquired 49 per cent shares in Cineyug Films Pvt Ltd (held by
co-accused Karim Morani) only subsequent to the transfer of
the bribe money and they all were the umbrella companies of DB
Realty.
He had also rebutted the submission of the defence
that the alleged "illegal gratification" of Rs 200 crore was
actually for the shares of Kalaignar TV and the same was
called back after the valuation of the share was higher than
assessed and Rs 200 crore would not have fetched good shares.