Reliance favoured over Tata to keep some spectrum safe for Swan Telecom during grant of dual-technology licences:CBI

Lalit said Swan was allowed to ink an intra-circle roaming agreement with BSNL, which allowed them to operate in all circles on BSNL’s network without themselves having the infrastructure to do so.

By Smirti Singh, TNN | Updated: Jul 23, 2011, 10.35 AM IST

NEW DELHI: The Central Bureau of Investigation (CBI) on Friday told a special CBI court that during grant of dual-technology licences to existing service providers, Reliance was unduly favoured over Tata in order to keep some spectrum safe for Swan Telecom.

Continuing the arguments on framing of charges for the second day, special public prosecutor U U Lalit said, “Tata, which was an existing licencee, sought to have dual technology. Its file was delayed by 35 days, and it was shown that Swan Telecom has been issued licence for the Delhi circle. Tata Tele Services Ltd, having priority over Swan in terms of dual technology approvals, was unreasonably deprived of allocation of spectrum for Delhi circle.”

Lalit said Swan was allowed to ink an intra-circle roaming agreement with BSNL, which allowed them to operate in all circles on BSNL’s network without themselves having the infrastructure to do so. He reiterated that Swan was a front company of Reliance as is evident from even the letter dated March 1, 2007. Reliance had sent the letter to HDFC, wherein it was said that Swan Telecom was its group company.

Some advocates, appearing for the other accused, raised objections to the inaudible arguments made by Lalit before special CBI judge O P Saini. Senior advocate Majid Memon, appearing for Swan Telecom promoter Shahid Balwa, had also raised the objection twice while requesting the judge to make a provision for a microphone by Monday . They even proposed installing a screen in the courtroom for those seated at the far end to get a better view of the proceedings.

On Friday, the proceedings were briefly interrupted when a man was caught by the security staff trying to take pictures of Shahid Balwa and other accused.

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