The Supreme Court on Wednesday indicated it would examine the role of ADAG chairman Anil Ambani in the 2G spectrum allocation case while the CBI hinted at chargesheeting former law ministry legal adviser Santokh Singh and the ED at proceeding with attaching the properties of five companies, totalling `10,000 crore, in the next two months under Fema and the Prevention of Money-Laundering Act.
As advocate Prashant Bhushan, the petitioner in the 2G case, raised the issue of ADAG’s alleged transfer of shares worth `1,000 crore to Swan Telecom, which he said was nothing but a front company of ADAG, a bench comprising Justices G.S. Singhvi and A.K. Ganguly — monitoring the probe — said, “We will go through your note. That issue we have not closed. That issue we will deal (with) very soon. We will make an endeavour to hear you. On May 3 (the next hearing) we will consider this.”
The apex court bench, looking taken aback at the kind of money transaction figures reeled out by the CBI and ED in their reports, commented, “We have not come across such figures before (in any scam).”
Responding to the court’s observation, Mr Venugopal, special counsel for the CBI and ED, acknowledged the enormity of the scam, saying such a fraud had never happened
in India before. Regarding the role of Mr Santokh Singh, he said a CBI investigation has “clearly showed total violation” by him in rendering legal advice (to former telecom minister A. Raja). “He is likely to be chargesheeted in the third chargesheet,” he said.
Though Mr Venugopal did not mention Mr Singh’s name explicitly, he left no one in doubt while referring to his role, mentioned in the CBI report filed in a “sealed cover”, and said he had given “advice” about not referring the issue of 2G spectrum allocation to the GoM while ignoring the advice of the finance ministry in this regard.
Even the bench dropped a clear hint about Mr Singh, saying he is the same person who was shifted from the ministry to DoT and then brought back. Mr Singh was suspended in November 2010 after the CAG had indicted him. Lifting further doubt, the CBI counsel said, “As far as the next hearing is concerned, this person should be chargesheeted. He kept the file pending for six months (before giving his opinion in 2007).”
While reading out crucial portions of the ED report, Mr Venugopal said five companies would be proceeded against for attachment of their properties, worth `2,000 crore each (totalling `10,000 crore), for “gross violation” of the provisions of the Foreign Exchange Management Act and Prevention of Money Laundering Act. He said the ED had already issued notices to two companies and indicated that the other three might be served notices very soon.
Among several companies under the ED scanner, Swan and Unitech have already been chargehseeted by the CBI and the ED is investigating the role of DB Realty of Mr Shahid Balwa, Kusegaon Flour and Vegetable Ltd of his cousin Asif Balwa, and Green House Promoters Ltd of the late Sadiq Batcha, a close associate of Mr Raja. Both the Balwas have been chargesheeted and are in judicial custody.
Mr Venugopal said that in some cases money laundering to the tune of `3,000 crore had been detected wherein bogus companies were floated and their registrations later withdrawn. In some cases, the money was later shown as returned to the project as if it were a loan. “In such violations attachment an order will be issued by the ED shortly and the penalty to be imposed under PMLA will be three times that of the transaction,” he said.
Mr Venugopal sought more time to complete the probe, stating that the two probe agencies faced an “enormous” task that would be complete only by July. Though agreeing to give the CBI and ED more time, the apex court fixed the next hearing for May 3 when it is likely to consider Mr Bhushan’s note related to Mr Anil Ambani’s role.
Besides, the top court directed income-tax department counsel Mukul Gupta to submit to the CBI the complete transcripts of corporate lobbyist Niira Radia’s telephone conversations with several people taped by it as she had been cited as a crucial witness by the CBI.