Selective CBI not going after big names,says Balwa

Jailed Swan Telecom promoter Shahid Usman Balwa today accused CBI of adopting a selective approach in arresting people in the 2G spectrum case.

Noting that while the CBI is silent on selling of stakes by big people like Tatas,Swan Telecom and Unitech Wireless are discriminated against,Balwas counsel Majeed Memon said: What message would go to foreign investors? Many investors with millions have gone back due to the folly of some CBI officers. Do we want to shatter our economy due to some officers who blow hot and cold?

Saying the CBI has damaged the health of the economy,Memon said foreign investors are contemplating sending observers to India to know whether it is a fair trial.

The CBI has said Swan Telecoms sale of its shares to Etisalat after obtaining 2G licences amounted to wrongful gain. But Balwa countered: Tata Teleservices sold Rs 14,000 crore worth primary equity shares; while Rs 3,000 crore went to Tata Sons pocket,only the remaining went to the company. Whereas,Swan entered into a share subscription agreement,diluted secondary equity,all of which remained with the company.

Existing telecom operators wanted to weed out new entrants and hence they hatched a conspiracy against them. According to Prashant Bhushan,CBI is holding a brief for Tatas. CBI took seven pages in its chargesheet to explain how they were the victim of the accused, said Memon.

While the biggest loss to the exchequer was caused by Tatas,the plea to chargesheet them was thrown out with cost imposed. Such miscarriage of justice will lead to serious repurcussions, he added.

Seeking to involve all the companies who got licences at the reduced price and hence were beneficiaries,Memon said: Why doesnt the CBI prosecute other players,if not for criminal conspiracy then certainly for cheating under Section 420. They caused wrongful gain to themselves and wrongful loss to the exchequer. How could CBI give them a clean chit?

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Questioning the notion of loss due to award of licences,as the figures cited by CAG and CBI are different,he said: The CBI must say what is the actual loss to the nation and who is responsible? CBI sent a letter to TRAI in January 2011,asking them to quantify the loss. TRAI conveyed this request to an expert committee. The CBI is yet to get a reply but it has commenced trial.

When Prime Minister Manmohan Singh and present IT minister Kapil Sibal have already stated that no loss was caused to the nation,then what loss is the CBI talking about,he asked. Memon also produced letters between A Raja and Singh,dated November 2007-January 2008,before the issuance of LoIs to prove that the licence policy had the approval of the PM.

The PM supported a policy that was consistent with TRAI recommendations and 10th Five Year plan. We are not finding fault with the PM,we are only seeking authentication of our action by citing his statements, he said.

He added: There was a personal discussion between the then Minister of External Affairs (Pranab Mukherjee) and the Solicitor General (G E Vahanvati) on the allocation policy. CBI should place this document before the court.