Investigating agencies are examining a transaction between Tata Realty and Infrastructure (TRIL), a Tata Group company, and real estate firm Unitech in 2007, according to reports.
It is believed that a loan of around Rs 16 billion was advanced by TRIL to Unitech in a deal that was said to be facilitated by Niira Radia, a lobbyist and owner of a firm that handles the public relations work of all Tata companies.
The end-use of the money is of interest to the government as it feels that the amount may have been used by Unitech to pay for a 2G GSM licence awarded in early 2008. Besides, the possibility of an understanding that the Tata Group would pick a stake in the telecom arm of Unitech has not been ruled out.
Officials with investigating agencies said that Radia was quizzed on this transaction and the end-use of this money. Radia told interrogators that while such an amount was given by TRIL to Unitech in 2007, she was not sure of what the money was meant for.
She also confirmed her involvement in structuring the agreement between the two companies. Meanwhile, TRIL said no loan was given to Unitech, but confirmed that it did provide the realty company with a commercial advance.
