CBI probes bank loan of `1,200cr to Balwa firm

The CBI has now begun probing the banking loan of `1,200 crores which was given by certain public sector banks to Swan Telecom (now Etisalat-DB Telecom Private of Shahid Balwa) for the payment of Unified Access Service (UAS) licence fees. Sources said the agency is probing the role of former telecom minister A. Raja, his associates and certain former as well as serving officials of the Department of Telecommunications (DoT) in helping Swan Telecom and other private companies obtain these loans just a few days before the allotment of UAS licences.

The probe has, so far, revealed that Swan Telecom got its first loan of `70 crores on October 18, 2007. The very next day, the company was sanctioned a loan amount of `290 crores from the Punjab National Bank on October 19, 2007, sources said.
On October 20, Balwa’s company got another loan of `350 crores from the State Bank of India on October 20, 2007.
“The last two loans of `200 crores and `250 crores were sanctioned to the company on October 22 and October 23, 2007, respectively. In just five days (from October 18 to October 23, 2007) the company was sanctioned a total loan amount of `1,200 crores”, sources said. Role of Mr Raja, his associates and DoT officials are being probed in this regard, sources added.
Sources further said, “Questioning of both Balwa and Raja has provided certain clues to the central probe agencies which are being further verified. The agency officials are also expected to question Sadiq Bacha, owner of Chennai-based Green House Promoters and a close aide of Mr Raja in this connection on February 23”. The agency officials on Saturday questioned Mr Ramchandran, a close relative of Raja in connection with its probe related to the 2G scam.
The allegation that loans raised for UAS licences, were used for purposes other than telecom activity of the companies is also being probed by the agency, sources said.
However, during his interrogation, Mr Balwa denied the charges. If required, the company may question the company secretary concerned of Balwa’s company, sources said adding top officials of certain public sector banks will also be questioned in this regard.
“Officials are also scrutinising papers related to the share-holding pattern in Etisalat-DB Telecom Private Limited. Papers related to share-holding of Delphi Investments Limited in Etisalat-DB Telecom Private too is being scrutinised and the CBI recently sent a Letter of Request (LR) to Mauritius in this regard,” sources said.

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