Not violated any license norms with Swan stake

New Delhi: Under the scanner for its alleged association with Swan Telecom, Anil Ambani group firm Reliance Communications on Sunday said it only held 9.9 per cent equity share capital in the firm at the time of applying for 2G licences and asserted that it did not violate any norms.

The company also said it was in full compliance with all applicable DoT guidelines, rules and regulations.

Reliance Telecom held only 9.9 per cent of the equity share capital of Swan Telecom at the time of filing the relevant licence application in March, 2007, Reliance Communications Wireless Business CEO Syed Safawi said in a statement.

This shareholding was fully disclosed at inception and this information has always been in the public domain, he added.

The company`s statement comes within days of the CBI questioning officials of ADAG firms in relation to 2G spectrum allotment in 2008 by former Telecom Minister A Raja.

Government auditor CAG had also alleged that Swan Telecom acted as front for ADAG to get licence and spectrum in several circles. Swan Telecom later inducted foreign partner Etisalat, which acquired a 45 per cent stake by way of fresh equity for about USD 900 million.

The CBI has already arrested Swan Telecom`s promoter, Shahid Balwa, for his alleged involvement in the 2G spectrum scam of 2008 and his interrogation is under way.

"Neither Reliance Telecom, nor RCom, nor any Reliance ADA Group individual, company or affiliate is a beneficiary of, or has any connection with, any of the licenses issued, or spectrum granted to old and new 2G operators in January, 2008," Safawi said.

In the statement, RCom accused its competitors and corporate rivals in the telecom industry for putting up "a smokescreen and cover their own unprecedented irregularities over the past decade and thereby protect their industry market shares built through manipulation of the policy regime and favouritism in connivance with certain DoT officials of the relevant time."

With regard to issuance of dual technology licences by Raja to Reliance Communications, the group said its application that had been pending from February, 2006, for more than 18 months, was on identical terms and involved the payment of identical fees as three other companies — the Tata group`s Tata Teleservices, Himachal Futuristic Communications and Shyam Telecom (now known as Sistema) — and there is nothing special or untoward in the same.