The Ministry of Finance?s department of financial services has requested the Indian Banks? Association (IBA) to provide details about loans given to operators to pay for 2G mobile licences obtained in 2008, according to news reports.
This is part of the ongoing examination by the Public Accounts Committee (PAC), a parliamentary audit panel, into the alleged irregularities
The government also wants to know whether state-run banks have violated norms while lending to telecom companies that received the spectrum.
The finance ministry has thus far maintained that there is no evidence of irregularities in bank loan disbursals to telecom companies.
The finance ministry intervention comes on the heels of the Central Bureau of Investigation (CBI) discovering that some state-owned banks may have bypassed rules when they loaned funds to telecom companies to pay 2G prices.
CBI?s banking fraud cell has registered a preliminary inquiry report against unknown bank officials for giving term loans to the erstwhile Unitech Wireless Limited after allegedly finding that the money may have been routed to other group firms. The company denied any wrongdoing, said all processes had been followed and that the money had been repaid.
It is also examining loans given to Swan Telecom Private Limited (now known as Etisalat DB Telecom India Private Limited).
State-run banks lent at least Rs 25 billion to Unitech and more than Rs 7 billion to Swan Telecom during the 2G allocation process in 2008-2010 and subsequently for the roll-out of services. Overall, they offered around Rs 140 billion in the form of short-term, working capital loans and bank guarantees to five new entrants who were allocated 2G licences.
It is believed that the State Bank of India has given around Rs 100 billion to the five new operators that received 2G licences. Punjab National Bank has given around Rs 3.30 billion and IDBI Bank around Rs 10 billion.
