Etisalat paid Rs 1.06 billion to DB Reality chief Shahid Balwa to obtain a single share which gave it management control of Swan Telcom, say news reports.
K.K. Venugopal, appearing for the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED), informed the Supreme Court that this premium was paid for the share when the face value of each Swan share was Rs 3 and its market price was Rs 270.
According to the ED, the Foreign Exchange Management Act (Fema) and Prevention of Money Laundering Act (PMLA) were violated in the acquisition of a majority stake in Swan by Etisalat. Thereafter, the ED will launch adjudication proceedings as well as attachment of properties once the CBI files its charge sheet against the accused individuals on April 2.
