SC wants CBI probe on bank loans to licencees

2G scam: PSU banks gave loans to four firms on the basis of hypothecation of their licences

 
“If it is true, it is astonishing. It goes much far beyond what you are advancing,” a Bench of Justices G S Singhvi and A K Ganguly observed on Wednesday when advocate Prashant Bhushan of the Centre for Public Interest Litigation (CPIL)  was making his submission.

Bhushan was quoting reports that said PSU banks provided loans to about four licencees on the basis of the hypothecation of 2G licences and the State Bank of India granted a loan of Rs 2,500 crore to  real estate major Unitech Ltd.
“This is an indication that Rs 2,500 crore is given. It appears to be very substantial on the basis of hypothecation of the licence only,” the Bench said.

“A bank which is the most premier bank of the country, the State Bank of India, functioning under the Act of Parliament, lending Rs 10,000 crore. It is a matter of such great public importance. It needs to be covered under the CBI investigation,” the Bench observed while stressing that “investigation should be holistic”.

While the Bench was making the remarks, senior advocate K K Venugopal, appearing for the CBI, said: “If the court wants, we can conduct preliminary inquiry.”

He said this aspect was not looked into by the agency as the FIR on this has to be registered by the CBI’s other wing — Securitisation and Fraud Cell.

“The investigation on this issue cannot be carried out in the pending case and a fresh FIR has to be registered,” he submitted. Bhushan told the Bench that loans were given to licencees after an FIR was registered in the 2G spectrum scam.

The CPIL counsel referred to recorded conversations between corporate lobbyist Nira Radia and others and said it exposed various illegalities, and bribes were given to political parties like the DMK and the Tamil Nadu Chief Minister.

However, the Bench said: “Till we get the contents of the tapes verified we will not comment as your words will become headlines (in newspapers). Unless someone has actually heard it (tapes).” Bhushan told the Bench he himself has heard the tapes.
“We will presume that you are an IT expert,” the Bench said in a lighter vein and added: “Unless authentication is given, it has wider ramification as far as public sector banks are concerned”.