Author: Raoji

This post is in continuation of my This is India ! Series

Reliance ADAG Group Chairman Anil Ambani today told a special CBI court hearing 2G spectrum case that he was not even aware of a company called Swan Telecom Private limited (STPL).

 

“I am not aware of any company by the name of Swan Telecom Limited. Reliance Telecom Limited is a subsidiary of Reliance Communication Limited and I am a non-executive chairman of the latter company. Earlier, I was on the board of Reliance Telecom Limited, but I do not recall the period. I am unable to recall if I was on the board of this company in 2007,” Ambani told the court.

Confronted by the prosecution with his earlier statement to the CBI, Ambani told the court, “It is wrong to suggest that Swan Telecom Pvt Ltd (STPL) was a shell company of my group. It is wrong to suggest that it was in my knowledge that STPL had applied for UAS Licence for J&K service area in 2007. I cannot recall if Reliance Telecom had made an investment to the extent of 9.9 per cent in equity shares in STPL.”

“I am unable to recall if Reliance Telecom had applied an investment in preference shares of STPL of Re. 1 each with premium of Rs. 999 per share, totaling to Rs. 1000 per share. I cannot say if this investment in equity and preference shares was made to show that the company was compliant with UASL Guidelines. It is wrong to suggest that these facts were discussed with me by Gautam Doshi,” he said.

I am unable to recall if these facts were told by me to the investigating officer. It is wrong to suggest that it was in my knowledge that STPL had applied for UAS licences in thirteen more service areas. It is wrong to suggest that it was in my knowledge that for applying for more service areas, the company required higher paid-up capital and higher net worth.”

“It is wrong to suggest that for this purpose Reliance Telecom Ltd (RTL) purchased further preference shares of Re. 1 at a premium of Rs. 999 from STPL and this was done to maintain net worth criteria. It is further wrong to suggest that it was in my knowledge that it was done so that the investment of RTL remains 9.9 per cent,” he said.

His stock answer to a series of questions by the prosecution on the existence of companies, board meetings he attended and transfer of his shares to companies such as Tiger Traders, Zebra Consultants and Parrot consultants were, “I’m not aware” or “I don’t recall”.

–from Firstpost