New Delhi, Jan 17 (PTI) The Ministry of CorporateAffairs has given a clean chit to Swan Telecom (now EtisalatDB) and said Anil Ambani-led Reliance Communication never hadmore than 9.90 per cent stake in the company.
The Ministry of Corporate Affairs'' response comes in thewake of Telecom Ministry''s request to examine the share-holding pattern of Swan Telecom to ensure the eligibility ofthe company to get the licence and 2G spectrum in 2008.
In its report, the MCA has said that with effect fromJanuary 31, 2006, Reliance COmmunications had no equity shareholding or voting rights in Tiger Trustees Private Limited,Swan Advisory Services Private Limited and Swan Infonet.
The Ministry gave its report to the Department ofTelecom (DoT) after getting details from the Registrar ofCompanies (ROC), Mumbai.
Swan Telecom had bagged the licence in January 2008 for13 circles and then expanded it equity base by inductingUAE-based Etisalat which now holds over 45 per cent stake inthe joint venture.
Telecom Minister Kapil Sibal had ordered an enquiry inthe stake-holding pattern of the company following allegationsthat it was the front company for RCOM. Government auditor CAGhad also alleged violation of substantial equity clause in itsreport on the issue.
Apart from having 9.90 per cent equity, the MCA saidReliance Telecom also invested Rs 992 crore in preferenceshares but these shares never carried any voting rights.
The preference shares were also divested on October 17,2007, it said.
The ROC further clarified that "the Memorandum orArticles of Association or other documents filed with hisoffice by Swan Telecom or Tiger Trustees do not contain anyprovision which could provice Reliance Communication orReliance Telecom or any other person with any special rightsor privellages entitling them to control Swan Telecom..."
Swan Telecom (Etisalat DB) has been served show causenotice seeking an explanation that why its licence should notbe cancelled in view of the allegations leveled against it.