Swan Telecom was indirectly funded by ADAG: Court

A Delhi court on Friday said Reliance Telecom Ltd of Anil Dhirubhai Ambani Group (ADAG) of companies had already been granted 2G spectrum licence in some circles and, as such, Swan Telecom, its associate company, was not eligible for the same.

"M/s Reliance Telecom Limited of ADAG group of companies had already been granted licence in some circles and, as such, M/s Swan Telecom Pvt Ltd, its associate company, was not eligible for licence," Special CBI Judge O P Saini said, while rejecting the bail plea of Swan Telecom promoter Shahid Usman Balwa and R K Chandolia, former personal secretary of former Telecom Minister A Raja in 2G spectrum allocation scam.

Dismissing their bail applications, the court considered the fact that Swan Telecom, promoted by Balwa, was ineligible for 2G licences, as the holding firm of the company was indirectly funded by ADAG.

The court said Swam Telecom should not have applied for licences in the first place as it was incorporated by M/s Reliance group of companies and thus was ineligible.

Rejecting the bail pleas, the court said the accused are "high ranking public servants" and "influential" who may tamper with the probe.