"We are referring (Swan Telecom) to the Ministry of Corporate Affairs to actually find out and investigate if there are any front companies involved," Telecom Minister Kapil Sibal told reporters here.
"And if we find, pursuant to that investigation, that there was any wrong-doing, we will take action," he added.
According to a report by the Comptroller and Auditor General (CAG), Swan Telecom appeared to be acting as a front company for Reliance Telecom, a 100 per cent subsidiary of RCom.
As per the existing rules, no telecom operator is allowed to hold more than 10 per cent stake in another service provider in the same circle, either directly or indirectly.
However, in all 13 circles where Swan bagged licences, Reliance was already present. The CAG has calculated that inclusive of preferential shares equivalent to a 0.9 per cent stake, RCom had a 10.71 per cent participating interest in Swan.
RCom, on the other hand, has maintained that while it held a 9.9 per cent equity stake in Swan through Reliance Telecom till December 5, 2007, it had offloaded the shares prior to the award of a telecom licence to Swan on January 10, 2008.
