The Enforcement Directorate (ED) has informed the Supreme Court that the operators involved in the 2G spectrum issue had violated the Foreign Exchange Management Act (FEMA) to the tune of Rs 100 billion. It added that as per the rules, a fine worth three times the violation could be imposed.
This implies that the ED, as per FEMA guidelines, could impose a penalty worth Rs 300 billion. This amount is equal to the quantum of loss to the exchequer estimated by the Central Bureau of Investigation (CBI), owing to alleged irregular allotment of spectrum in 2008 by former Minister of Telecommunications and IT, A Raja.
Meanwhile, the ED has also requested the Supreme Court for a six month extension to complete its scrutiny of the case. The Court has asked the agency to complete the investigations in three months.
The ED has also said that in so far, properties worth Rs 2.23 billion had been attached mainly pertaining to the Rs 2 billion allegedly paid by DB Group’s Shahid Balwa to DMK controlled Kalaignar TV as a quid pro quo for spectrum to Swan Telecom.
It added that its investigations extended to Jersey Islands, Isle of Man and Cyprus, from where foreign investments were pumped into telecom operators, through a large number of front companies.
Further, the ED said that it was examining transactions involving around 350 accounts, of which nearly 200 were intimated by the Financial Intelligence Unit (FIU).
It said the FIU was equipped to receive information from across the world about banking transactions in excess of $10,000.
