Balwa wrongly implicated in 2G case: DB Realty

"Balwa has been implicated wrongly in the investigations pertaining to the grant of 2G licences," a statement issued by DB Realty said here today.

The statement said neither Balwa nor the company had done anything "inappropriate or illegal" and they will strongly contest the proceedings and are confident that ultimately he will stand "vindicated as truth will prevail."

DB Realty is a flagship company of Dynamix Balwas Group and was established in early 70s.

The CBI was today allowed two days` transit remand of Balwa by a Mumbai court to take him to Delhi and confront him with former Telecom Minister A Raja, who is also in the agency`s custody in connection with the 2G spectrum case.

Balwa, who was arrested last evening from his Bandra residence, was produced before Special CBI Judge S C Chandak.

Balwa-promoted DB Realty had floated Swan Telecom.

Raja allegedly helped Swan bag 2G licences for 13 circles, including Mumbai and Delhi, for Rs 1,537 crore but Swan sold 45 per cent shares to the UAE telecom giant Etisalat for approximately Rs 4,500 crore within months of bagging the spectrum.

Balwa is the fourth person to be arrested in 2G spectrum case after Raja, his former personal secretary R K Chandolia and former Telecom Secretary Siddharth Behura.

The development will not affect the functioning of DB Realty Limited in any manner whatsoever, the company said, adding business will be continued in the normal way under the other Managing Director, Vinod Goenka and the top-tier team under the guidance of its Board.

Sources have claimed that the CBI has some evidence through Income Tax department that Balwa, said to be close to A Raja, was instrumental in channelling alleged kickbacks received by the former telecom minister in the sale of 2G spectrum.

According to the sources, Balwa had allegedly helped the former Telecom Minister and some of his aides park the money in real estate sector.