[OccabsLam]

The CBI on Thursday told a Delhi court that former telecom minister A. Raja had approved the grant of dual technology 2G spectrum licences to his favourite telecom firms like ADAG's Reliance Communication and others a day before inviting applications for it.

Opening his arguments on framing of charges before special judge O.P. Saini, special public prosecutor U.U. Lalit said Raja had given in-principle approval for grant of 2G licences to Reliance, HFCL and Shyam Tele link on Sept. 18, 2007, a day before his ministry officially opened the scheme on September 19, 2007, for grant of these licences.

A day later as Tata Teleservices applied for the 2G spectrum licence on September 19, the telecom minstry deliberately sat over its plea, he added. “On September 19, 2007, the press release for approval of dual technology was issued but a day earlier on September 18, 2007 itself, Raja had granted in-principle approval for dual technology (licence) for Reliance, HFCL and Shyam Tele link,” said Lalit.

“On September 19, 2007, Tata Teleservices applied for dual technology spectrum but their application was not treated in a similar fashion. It was kept pending and deliberately so with a design,” he added.

Lalit said had the Tata Teleservices’ applicaton for dual technolgy licence been approved, the priority for “Raja's favourites” would have been affected. Lalit argued Reliance had floated Swan Telecom as it was not sure if its application for dual technology use of spectrum will be allowed.

But by floating a front company, Reliance had violated the law which stipulated that no group can have substantial equity holdings in in two companies within the same circle, he contended.

“Swan was nothing but an alter ego of Reliance.

Various companies were formed as associates and they fraudulently showed transfer of shares,” said Lalit.

— PTI