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Corporate affairs ministry to furnish Swan Telecom details

Corporate affairs ministry to furnish Swan Telecom details
PTI
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First Published: Tue, Dec 21 2010. 07 30 PM IST
Updated: Tue, Dec 21 2010. 07 30 PM IST
New Delhi: The corporate affairs ministry on Tuesday said it will shortly provide the Department of Telecom (DoT) with details of shareholding pattern and equity structure of the controversial Swan Telecom.
DoT had sought this information from MCA after the government auditor CAG alleged in a report that Swan was a front company of Anil Ambani-led Reliance Communications.
“Whatever we were asked (by DoT) we replied...We were asked for facts and we are giving that. Basically, we are reconfirming the facts. What they do with the facts, how they interpret it is up to the DoT,” corporate affairs minister Salman Khurshid said.
Last month, telecom minister Kabil Sibal said DoT would ask MCA to investigate the CAG allegation that Swan Telecom, which got licences and spectrum in 2008, acted as a front company of RCom.
“I can’t tell you the facts as in such and such deal what done at such and such time, but the equity holding...they are all on MCA-21 (the e-index on companies).”
According to a report by the Comptroller and Auditor General (CAG), Swan Telecom appeared to be acting as a front company for Reliance Telecom, a 100% subsidiary of RCom.
As per the existing rules, no telecom operator is allowed to hold more than 10% stake in another service provider in the same circle, either directly or indirectly.
However, in all 13 circles where Swan bagged licences, Reliance was already present. The CAG has calculated that inclusive of preferential shares equivalent to a 0.9% stake, RCom had a 10.71% participating interest in Swan.
RCom, on the other hand, has maintained that while it held a 9.9% equity stake in Swan through Reliance Telecom till 5 December 2007, it had offloaded the shares prior to the award of a telecom licence to Swan on 10 January 2008.
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First Published: Tue, Dec 21 2010. 07 30 PM IST