Reliance Communications (RCOM) has told the Central Bureau of Investigation (CBI) that it held 9.9 per cent equity in Swan Telecom, at the time of obtaining spectrum. This, the operator said, was well within the prescribed limits.
We held 9.9 per cent stake in Swan Telecom: RCOM to CBI
RCOM?s counsel said, “Swan Telecom cannot be held as an associate company of Reliance Telecom.?
The response was to the CBI?s charges that Reliance Telecom had co-promoted Swan Telecom as its front company to evade the norms pertaining to shareholding at the time, making all existing service providers ineligible for fresh spectrum in their current areas of operation.
The counsel added that the guidelines only barred an existing telecom company from holding shares in excess of 10 per cent in another operator. Therefore, RCOM?s case did not hold, as the operator held 9.9 per cent stake in Swan.
