Shahid Usman Balwa, managing director, DB Realty Limited has been sent to Tihar Jail, according to news reports. He will be in judicial custody until March 3, 2011.
Balwa was arrested by the Central Bureau of Investigation (CBI) on February 8, 2011, in connection with 2G spectrum issue. Swan Telecom, one of the beneficiaries of the 2G spectrum allocation process, is alleged to be a front company for Reliance Communications.
The CBI has said it has evidence that A. Raja, former Minister of Telecommunications and IT, gave Balwa an undervalued spectrum deal. In return, Balwa allegedly channelised kickbacks Raja got from the spectrum sale into the real estate.
In 2008, Balwa’s Swan Telecom bagged 2G licences for 13 of the 22 circles across India, circles that included Mumbai and Delhi, for Rs 15.37 billion. Within months it sold 45 per cent stake to UAE-based Etisalat for Rs 45 billion.
