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No ineligible stake in Swan Telecom: RCom

No ineligible stake in Swan Telecom: RCom
PTI
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First Published: Thu, Nov 18 2010. 07 46 PM IST
Updated: Thu, Nov 18 2010. 07 46 PM IST
New Delhi: Asserting that it had no stake in Swan Telecom, which has been declared as ineligible by the government auditor for issuance of licence, Anil Ambani led Reliance Communications said on Thursday that it was ready to provide all relevant information to resolve “doubts” expressed by CAG.
The company also clarified “Reliance Communications does not hold any of the 85 licences issued in January 2008, which CAG in its report has considered lacking in its basic eligibility.”
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The company said in a statement that it held no stake in Swan Telecom at the time of 2-G licence allocation, refuting the CAG report that it held 10.71% stake in the firm.
“RCom, through its 100% subsidiary Reliance Telecom, was a 9.9% equity shareholder in Swan Telecom only till 5 December, 2007, while Swan was granted licence only on 10 January, 2008,” it said.
The company said it was ready to provide all relevant information to resolve “doubts” expressed by CAG.
“Reliance Communications did not take any steps to actively pursue Swan license application at any stage. License validity and spectrum priority of Swan not relevant for us,” it added.
The company share tumbled to Rs153.90, down by 4.88% from the previous close on the Bombay Stock Exchange.
According to the Comptroller and Auditor General (CAG), 2-G spectrum allocation had caused revenue loss of Rs1.76 lakh crore as the then telecom minister had ignored the advice of the Prime Minister, besides those of ministries of Law and finance, giving “undue” benefits to new players that included Anil Ambani-led RCom.
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First Published: Thu, Nov 18 2010. 07 46 PM IST