RCom contests CAG claim of excess shareholding in Swan Telecom

NEW DELHI: Anil Ambani group today questioned the government auditor's report that states Swan Telecom was a "front company" for Reliance Communications, saying it had no shareholding in the firm that got a licence in 2008.

"Our group had no shareholding in Swan Telecom (now Etisalat DB) at the time of grant of licence to them or any time thereafter, and that issue is accordingly not relevant to our company," an RCom spokesperson said in a statement.

Highlighting irregularities in 2G spectrum allocation, CAG doubted the intention of RCom, saying Swan Telecom, one of the companies that got the licence, appeared to act as a "front company".

Reliance Communications, the statement said, has always been in full compliance with all applicable laws, rules and regulations. There has been no violation of our licence conditions at any stage on account of cross-holdings in excess of 10 per cent.