MCA submits report on Swan Telecom to DoT

Ministry report details "factual position"; DoT to decide if it was consistent or inconistent with licensing norms

sweta-ranjan

Sweta Ranjan | December 28, 2010



The ministry of corporate affairs (MCA) has submitted its report on Swan Telecom's alleged connection with Reliance Communication (RCom) to the telecom department (DoT). Corporate affairs minister Salman Khurshid told the reporters at a book launch that the ministry has looked into the factual position of the shareholding patterns of Swan Telecom, a company alleged to be a front company of Reliance Communication.

Khurshid said, "Registrar of Companies has got back to us and that information has also been shared with DoT. We were not looking for irregularities, we were looking for factual position. Whether that’s consistent or inconsistent with licensing conditions is for DoT to decide," he said.

Last month, telecom minister Kabil Sibal said DoT would ask MCA to probe the comptroller and auditor general (CAG) allegation that Swan Telecom, which got licences and spectrum in 2008, acted in the interests of RCom.

"I can't tell you the facts as in such and such deal what done at such and such time, but the equity holding...they are all on MCA-21 (the e-index on companies)."

According to a CAG report, Swan Telecom appeared to be acting as a front company for Reliance Telecom, a 100 per cent subsidiary of RCom.

As per the existing rules, no telecom operator is allowed to hold more than 10 per cent stake in another service provider in the same circle, either directly or indirectly.

However, in all 13 circles where Swan bagged licences, Reliance was already present. The CAG has calculated that inclusive of preferential shares equivalent to a 0.9 per cent stake, RCom had a 10.71 per cent participating interest in Swan.

RCom, on the other hand, has maintained that while it held a 9.9 per cent equity stake in Swan through Reliance Telecom till December 5, 2007, it had offloaded the shares prior to the award of a telecom licence to Swan on January 10, 2008.

Comments

 

Other News

Charming tales of the Snakeman’s early years

Snakes, Drugs and Rock ’N’ Roll: My Early Years By Romulus Whitaker with Janaki Lenin HarperCollins, 400 pages, Rs 699

Gripping graphic narrative helps make sense of pandemics past

The Moral Contagion By Julia Hauser and Sarnath Banerjee HarperCollins, 140 pages, Rs 699 The world has lar

“Globally, there is unprecedented positivity for India”

Addressing the Viksit Bharat Viksit Uttar Pradesh program in Lucknow on Monday, prime minister Narendra Modi launched 14,000 projects across the state, worth more than Rs 10 lakh crore at the fourth groundbreaking ceremony of UP Global Investors Summit held in February 2023. The projects relate to sectors

World’s biggest bird-a-thon begins in India

During the four days from Feb 16, more than a thousand birdwatchers throughout India are coming together with the goal of documenting as many birds as possible across the country’s diverse locations. Over one lakh birdwatchers globally participate in the annual Great Backyard Bird Coun

Comments sought on Draft Guidelines for Prevention of Misleading Advt in Coaching Sector

The Central Consumer Protection Authority has sought public comments on the ‘Draft Guidelines for Prevention of Misleading Advertisement in Coaching Sector’. The draft guidelines are placed on the website of the Department of Consumer Affairs and are accessible through the link:

Electoral bond scheme unconstitutional: Supreme Court

In a landmark judgment, the Supreme Court of India has held the anonymous, unregulated and unlimited funding through electoral bonds and companies as unconstitutional. The five-judge Constitution Bench of the Supreme Court comprising chief justice DY Chandrachud and justices Sanjiv Khanna, B

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter