Etisalat DB and Reliance Communications (RCOM)?s roles in the 2G spectrum issue have been cleared by the Ministry of Corporate Affairs (MCA). The Ministry has also said that RCOM never held more than 9.90 per cent stake in the company.
The ministry?s findings are in response to the Department of Telecommunications? (DoT) request to examine the share-holding pattern of Swan Telecom to ensure the eligibility of the company to get the licence and 2G spectrum in 2008.
In its report, the MCA has said that with effect from January 31, 2006, RCOM had no equity share holding or voting rights in Tiger Trustees Private Limited, Swan Advisory Services Private Limited and Swan Infonet. The Ministry?s report is based on details obtained from the Registrar of Companies (ROC), Mumbai.
Swan Telecom had obtained the licence in January 2008 for 13 circles and thereafter sold 45 per cent stake to UAE-based, Etisalat. Kapil Sibal, Minister of Telecommunications and IT had ordered an enquiry in the stake-holding pattern of the company, following allegations that it was the front company for RCOM. The Comptroller and Auditor General of India?s (CAG) report on 2G spectrum had also hinted at violation of substantial equity clauses.
Apart from having 9.90 per cent equity, the MCA also said Reliance Telecom also invested Rs 9.92 billion in preference shares but these shares never carried any voting rights. The preference shares were also divested on October 17, 2007, the MCA added.
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