Reliance Comm denies involvement in 2G spectrum scam

Thursday, November 18, 2010

MUMBAI - Anil Dhirubhai Ambani Group company Reliance Communications said Thursday it was not in any way involved in 2G spectrum allocation scam, which according to the Comptroller and Auditor General (CAG) has caused a potential loss of Rs.1.76 trillion ($40 billion) to the exchequer.

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, Reliance Communications said in a regulatory filing to the Bombay Stock Exchange Thursday.

Reliance Communications, which has a 124 million customer base, said it had no stake in Swan Telecom at the time of 2G licence allocation, refuting the CAG report that it held 10.71 percent stake in the firm.

R Com through its 100 percent subsidiary Reliance Telecom was a 9.9 percent equity shareholder in Swan Telecom only till Dec 5, 2007, while Swan was granted licence only on Jan 10, 2008, the company statement said.

Reliance Communications had no shareholding in Swan Telecom at the time of grant of licence to them or any time thereafter, it added.

Share price of Reliance Communications plunged over 8 percent at the Bombay Stock Exchange on speculations that the company might come under the regulatory scanner for its alleged involvement in the 2G spectrum allocation scam, which has led to the removal of the then telecom minister A. Raja from the cabinet.

Filed under: Economy

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