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

Taming turbulence in Indian aviation

The booming Indian aviation industry, among the fastest growing sectors in the world, is projected to be valued at $40 billion by 2027. But, despite robust demand for air travel across the country, more than 50 airlines have closed down in the last decade in India and most private airlines have closed with

PM Modi leaves for G7 Summit in Italy

In his first foreign visit after taking oath of office for the third time, prime minister Narendra Modi Thursday evening left for Italy to participate in the G7 Outreach Summit. “At the invitation of Prime Minister Giorgia Meloni, I am travelling to Apulia region in Italy to participat

Some market talk, some gossip – learnings over tea at RBI

A Fly on the RBI Wall: An Insider’s View of the Central Bank By Alpana Killawala Rupa Publications, 248 pages, Rs 595  

Coalition politics not expected to impact India’s foreign policy

Prime minister Narendra Modi has strived incessantly to bring laurels and much needed recognition for the nation since May 2014 when he was sworn in as the head of state. The poser which can be deliberated upon is this: What will be the consequential impact of the new era of coalition politics which confro

New govt`s first decision pushes for farmer welfare

The BJP-led NDA government has started its term with its first decision relating to farmer welfare. Narendra Modi took charge of office as prime minister of India for the third time on Monday, a day after he and his colleagues were sworn in by the president of India. In his fi

Narendra Modi takes oath for third term

Narendra Modi made history Sunday evening as he was sworn in by president Droupadi Murmu for a third successive term. Modi thus becomes the first prime minister since Jawaharlal Nehru to have comptered two full terms and beginning a third consecutive term. In the swearing-in c

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