Investigating agencies probing the allotment of licences during the tenure of A. Raja, former Minister of Telecommunications and IT are examining the circumstances under which Allianz Infratech was acquired by entities apparently linked to the DB group in July 2008, just before it received a mobile service licence.
Allianz Infratech was formed by entrepreneur Ajay Singh and Asish Deora, a Mumbai-based businessman.
It believed that officials at the investigating agencies feel that the telecom ministry deviated from the rules to award mobile permits to Allianz Infratech which, they believe, was not eligible for them. Two agencies, the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) are probing the role of Allianz. The investigation is being monitored by the Supreme Court.
These officials say that on July 24, 2008, Deora and Singh, who held 51 per cent stake in Allianz at that time, sold 40 per cent stake to a company called Telespice for Rs 2.14 billion. Further, Singh sold his remainder 10 per cent stake to Drive Developers, alleged to be another DB group company, for an undisclosed sum.
A week after the sale, Allianz was granted mobile permits for two circles on July 31, 2008. Allianz Infratech had neither commenced operations nor did it have a customer base at the time of sale.
After being awarded mobile permits for Bihar and Madhya Pradesh in July 2008, Telespice, which by then owned 90 per cent of Allianz, transferred all its shares to Etisalat DB.
Besides, the agencies are examining two transactions running into thousands of crores which were carried out by Telespice in 2008-09. In that year, Telespice gave two unsecured, interest-free loans of Rs 28.14 billion and Rs 14.78 billion to two undisclosed entities.
Investigators are scrutinising the source of these funds, the entities to whom these loans were given and the reasons for such transactions.
