Swan Telecom was just a mask for Reliance Telecom: court

Posted By: Pti
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New Delhi, Oct 23: Anil Dhirubhai Ambani Group (ADAG)-led Reliance Telecom Ltd (RTL) was put on trial in 2G spectrum allocation scam case by a Delhi court which said Shahid Balwa-promoted Swan Telecom Pvt Ltd (STPL) was "just a mask" for RTL.

Special CBI Judge O P Saini dismissed the contention of RTL that Swan Telecom was not its "associate" saying it was, directly or indirectly, holding 100 per cent shares in STPL.

"Its (STPL) source of fund was RCL/RTL (Reliance Communication Ltd/ Reliance Telecom Ltd). Directly or indirectly it was holding 100 per cent shares of STPL as on the date of application.

"The source of funding of STPL was RCL/RTL...As such, STPL was not only an 'associate' but a front, or a facade, for RCL/RTL. In a sense, STPL was RCL/RTL itself and STPL was just a mask for it," the judge said.

The court also said RTL, which was already having CDMA licence, in order to obtain GSM licence in 13 circles, created a "web of companies" in order to conceal the identity of STPL.


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