Raja deviated from FCFS policy

Raja deviated from FCFS policy

Reliance violated law, CBI submits before special court

He purposely did not refer the matter to the empowered Group of Ministers (EGOM) and went on to tell the Prime Minister that the advise was “out-of-context”.

Advancing arguments on framing of charges, senior advocate U U Lalit told Special Judge O P Saini that in contrast to the FCFS policy, the Ministry accorded higher priority to the firms, which first managed to get the government's Letter of Intent for grant of the licence.

“Law Ministry recommended to refer the matter to EGoM but Raja (in his letter dated November 2, 2007) said the advice is out of context. He (Raja) dumped the advice and said we will go by the existing policy.”

“You (Raja) wished to go by the existing policy but then there appears to be a sudden deviation in the letter written to the PMO on December 26, 2007, saying seniority of applicants will be decided by date and time of compliance with Letter of Intent (and not by the date of application),” Lalit alleged.

Putting Reliance Infocomm on the dock, the CBI’s special prosecutor argued that Reliance had floated Swan Telecom as it was not sure if its application for dual technology use of spectrum will be allowed.

“But by floating a front company, Reliance had violated the law which stipulated that no group can have substantial equity holdings in two companies within the same circle.”

“It (Reliance) was unclear whether they will be allowed GSM spectrum through dual technology. So, they put up the particular company... Swan was nothing but an alter ego of Reliance. Various companies were formed as associates and they fraudulently showed transfer of shares,” Lalit said.

CBI is seeking prosecution of the accused including DMK Rajya Sabha MP Kanimozhi for allegedly making changes in cut-off list, violating first-come-first-serve policy, approval of dual technology and eligibility, besides causing loss to over Rs 30,000 crore to the exchequer.

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