Swan Telecom wants to know actual loss in 2G scam

New Delhi, Aug 1 (PTI) Swan Telecom Promoter Shahid
Usman Balwa Monday demanded in a Delhi court that the Central
Bureau of Investigation (CBI) "must answer" as to what is the
actual loss suffered by the state exchequer due to the 2G
spectrum scam.
Opposing framing of corruption and other penal charges
against him, Balwa told Special CBI Judge O P Saini that the
agency should have written a letter to the Indian Prime
Minister or the Finance Minister to know the actual loss to
the exchequer due to the scam.
"The CBI must answer as to what is the actual loss to
the state exchequer. It (loss) is the basis of the prosecution
and it has to be supported with documentation," advocate
Majeed Memon, appearing for Balwa, said.
Memon asserted that the CBI's case is based upon the
loss to the state exchequer but the government had stated in
Parliament that no loss was suffered and instead the
tele-density in the country had increased in 2010 from what it
was in 2004.
Memon also asked the CBI if any loss has been suffered
by the state exchequer, who exactly was responsible for it and
up to what extent.
He also said the probe agency must answer whether Swan
Telecom was ineligible to get Unified Access Services (UAS)
licence in January 2008.
Balwa's counsel also accused the CBI of adopting
selective approach in arresting people in the case.
"It is surprising how out of various companies (which
got licences for 22 circles) and persons, the CBI picked up A
and B and left others. Why are they adopting the selective
approach?," Memon asked, accusing CBI of conducting "a biased,
selective and discriminatory approach" in the investigation.
"You (CBI) have just picked up one man of your choice
from one point and the other from another point. CBI is
blowing up the case so that the court would be hesitant to
consider liberty of a person even after months. It is guilty
of misleading the court," Balwa's counsel told the court.
Memon also asked the CBI to explain as to why former
Indian Telecom Minister A Raja is in jail if ministers
belonging to the Bharatiya Janata Party (BJP) or National
Democratic Alliance (NDA) government are not in jail despite
evolving and following the same policy that Raja had pursued.
Without naming anyone, Memon submitted that Balwa is
paying the price because of business rivalry.
"I (Balwa) am a successful businessman and thus I am
paying the price because of my business rivals. There is a
feeling of vengeance (in my business rivals) as I am a threat
to my competitors," he said.
Balwa, arrested on February 8, is presently lodged in
Tihar Jail along with other 13 accused including Raja and
Dravida Munnettra Kazhagam (DMK) MP Kanimozhi.
Charges of cheating, forgery, criminal conspiracy and
corruption have been levelled against Balwa.
The CBI charge sheet has alleged that a bribe money of
Rs 200 crore had been channelised from Balwa's DB Realty to
DMK-run Kalaignar TV through a "circuitous route" via Cineyug
Films and Kusegaon Fruits and Vegetables Pvt Ltd for grant of
licence to Balwa's Swan Telecom Promoter.
The agency, in its first charge sheet, has alleged
that Balwa along with other co-accused in the case entered
into a conspiracy for manipulating the procedure for
allocation of spectrum with the aim of favouring companies
like Swan Telecom and Unitech Group.
Balwa asked as to why no one ever objected to telecom
majors like Airtel, Tata and Vodafone securing licences
between 2004 to 2007 at 2001 rates, while grant of 2G licence
to him at 2001 prices merely a few months later in 2008 is
being questioned.
Balwa's counsel pointed out to the Special CBI Judge
that the prices were fixed in 2001 and were followed till
2008.
"May I ask if after 2004, no one talks of giving
licences to Tata, Airtel and Vodafone on the same price as
fixed in 2001," he said, pointing out that Vodafone was
awarded licences to operate in Madhya Pradesh Telecom circle
on 2001 rates in March 2007.
"In March 2007, Vodafone was given licence at the
price fixed in 2001 and 10 months later (in January 2008)
eyebrows are being raised that I got licences at the price of
2001," Memon said.
He will continue arguments opposing framing of
corruption and other penal charges against Balwa in the post
lunch session.
Till now, the court has heard arguments on behalf of
former Telecom Minister A Raja, his personal secretary R K
Chandolia and former Telecom Secretary Siddhartha Behura
opposing framing of charges against them in the 2G spectrum
scam.