Re-opening Radia tapes,CBI wants probe into corporates,ex-judges,politicians

This list,which re-opens the Radia controversy,was turned over to the apex court after it pushed the CBI into listening to all the 5,800 conversations tapped by the Income-Tax department rather than only those related to the 2G case as it did earlier. It prompted the judges to remark earlier this week that there are middlemen in “every nook and corner” of the government.

The CBI has indicated that Radia herself is directly involved in only one of these cases which is listed as item number 1. It wants to probe four more and refer the others to state governments,CVOs of ministries and one to SEBI. It claims that intercepts also indicate a payoff to a former judge and a five-star swimming pool membership for a top law officer of the government but calls these “hearsay”,and wants the Supreme Court to issue further directions.

Supreme Court questions why no action taken on Radia tapes issue

The key issues based on intercepted conversations,as reportedly summarised by the CBI: 1. Bus contract with Tamil Nadu: Ravi Kant,a top functionary of Tata Motors,was in touch with Radia for her to use her proximity with politicians in the DMK to secure the contract. Other conversations indicate tough competition between Tata Motors and Ashok Leyland and that complaints were sent to the state government on allegations of irregularities in orders. The CBI says it would be proper to refer this matter to the DGP of Tamil Nadu.

2. Pradeep Baijal: Former chief of TRAI Baijal joined Noesis,a Niira Radia lobbying company. Phonetaps reveal he was then appointed Chairman of the Pipeline Advisory Committee of the Petroleum and Natural Gas Regulatory Board by the Government. Radia lobbied for RIL suggesting that this could be a case of ”some conflict of interest.’’ The CBI wants to do a “thorough” inquiry.

3. Madhu Koda: Rs 150 crore was allegedly demanded by Koda,then Jharkhand Chief Minister,for granting iron ore mine licence to the Tatas at Ankua. Tata Steel refused to pay and tried to get the licence through the Governor (Syed Sibte Razi) when the state was under President’s rule. However since the licence was put on hold,the agency has asked for the matter to be referred to the Jharkhand DGP.

4. Corruption and malpractice in judiciary/tribunals: The tapes reportedly contain allegations against some members of the judiciary and tribunals. One intercept is about a member of Telecom Disputes Settlement and Appellate Tribunal apparently ruling in favour of a corporate. There are conversations concerning a real estate issue in which a “favourable judgement’’ was given by a High Court judge after allegedly receiving a Rs 9-crore payoff. Another conversation is understood to be about fixing a complimentary membership to a five-star swimming pool for a top law officer of the Government. The agency names the judge and the officer but these names are withheld in this report because the CBI says these allegations could be categorised as ”hearsay’’ and the Supreme Court may like to pass suitable orders as deemed fit.

5. Anil Ambani’s Sasan Ultra Mega Power Project: Company was allegedly allowed to use excess coal from the mines for other projects of the company and this was challenged by rivals. Calling for a deeper CBI probe also into the role of Coal Ministry officials,the agency has noted that the CAG has also questioned this allotment and had said it caused substantial loss to the Government exchequer.

6. RIL-regulator link: Former DG (Hydrocarbons) V K Sibal faced a CVC inquiry into the ownership of a flat in Mumbai as well as into favours extended to him by Reliance Industries Limited. In 2009,the CBI registered two PEs (preliminary inquiries) and one RC (regular case) against Sibal. The agency says the relevant telephone transcripts should be sent to their unit handling the Sibal cases.

7. Fudging: “Fudged’’ records and customer data were submitted by ADAG’s Reliance Communications to the Telecom Regulatory Authority of India and the Bombay Stock Exchange which is alleged to have caused a loss to the Government exchequer to the tune of Rs 450 crore. This “appears to be a serious issue’’ and requires a through CBI probe,the agency has reportedly told the court.

8. Middlemen in aviation: CBI has named Ramesh Nambiar and Deepak Talwar as working actively in the aviation sector and reportedly wants to scrutinise seat-sharing arrangements by Air India and other Middle Eastern airlines. It has suggested that Talwar be put on the agency’s UCM (undesirable contact men) list and the matter be referred to the Ministry of Civil Aviation’s Chief Vigilance Officer.

9. Iron ore mines to ADAG: One conversation has a reference to the allotment of an iron ore mine to ADAG without them having a steel plant but the CBI adds that since it is a “vague” conversation without specific details,it would be proper to refer it to the CVO in the Mines Ministry.

10. Unitech-ADAG rivalry: Conversations indicating manipulation of markets and stocks but this could be “part of the corporate rivalry” between ADAG and Unitech. The matter should be referred to SEBI for suitable action,says the CBI.

The CBI then lists three cases which it says have been dealt with “in detail” during investigations into the 2G spectrum allocation case. In three other cases it calls for no action saying there is neither specific evidence nor any allegation.

BASELESS ALLEGATION BY PAID LOBBYIST: ADAG

The Indian Express contacted those named in the CBI’s list for their comments on the allegations.

Madu Koda: I don’t even know Niira Radia,I have never met her or talked to her over the phone. This allegation about me

wanting Rs 150 crore from Tata Steel is wrong. I am hearing about this for the first time.

Tata Motors spokesperson: Tata Motors has supplied buses across various states through JNNURM based on following due processes as prescribed for the tenders floated. We remain committed to robust regulations and processes in all our tendering.

ADAG spokesperson: These are baseless,motivated and unsubstantiated allegations by a paid lobbyist working for our corporate rivals spreading falsehoods against us. The use of surplus coal from our Sasan UMPP has been approved on two separate occasions by two EGOMs,headed by Pranab Mukherjee. The Delhi High Court also dimissed a petition on this matter filed against the government by Tata Power (who was the client of the lobbyist). The alleged loss of revenue to the exchequer by RCOM relates to industry issues involving all telecom operators. As regards iron ore mines,we are not in that business,and have not been allotted any such mines,which further demonstrates the utter lack of credibility of all such allegations.

Unitech spokesperson: Since the matter is before the Supreme Court and cases are being investigated by the CBI we would not like to comment.

Pradeep Baijal: I joined Noesis in 2007 and was appointed chairman of the Pipeline Advisory Committee sometime in late 2009. However,someone soon mentioned to me that there may be a conflict of interest and I resigned. I held the post for hardly one month and attended only one introductory meeting. They can hold any sort of inquiry now.

Deepak Talwar,Management Consultant: Such allegations (of being a middleman) have been repeated several times,I don’t wish to comment.

V K Sibal: The allegations had their roots in corporate rivalry. The CBI registered PEs,to the best of my knowledge,have not found anything to substantiate the allegations on my ownership of a flat and such things. Otherwise they would have registered FIRs.

Spokesperson for Niira Radia: She has no comments or reaction to all this.

WHAT CBI HEARD AND PROPOSED

Fresh Probe: Conflict of interest by Pradeep Baijal; former TRAI chief’s posting; “fudging” of subscriber records by ADAG group

Routing to other CBI units: Allotment of coal blocks to Sasan Ultra Mega Power Project (UMPP) and allegations against V K Sibal,former DG Hydrocarbons

Routing to CVOs of ministries: Middlemen working in aviation sector and allotment of iron ore mines to ADAG group without having steel plant

Supreme Court to decide: Judgments passed by TDSAT member in 2008-09; High Court judge accepting ‘bribe” for real estate ruling and former law officer taking 5-star pool membership

Send to SEBI: Allegations of manipulation of markets by Unitech

No action needed: Grant of additional spectrum to ADAG group; a DMK leader paying money to get a Cabinet berth; allotment of 2G spectrum to Unitech;sale of company by A Raja to Shahid Balwa and journalist accessing confidential papers

Probe by state governments: Supply of buses under JNNURM to Tamil Nadu and allotment of iron ore mines in Ankua to Tata Steel