November 18, 2011

Raja's 2G note: Subramanian Swamy seeks action against Chidambaram

Subramanian Swamy

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The main petitioner in 2G scam case, Janata Party president Subramanian Swamy, on Friday called the dilution of equities by the original license holders -- Unitech and Swan Telecom, a "sham transaction" in the name of Foreign Direct Investment (FDI).

Reacting to a 2G note written by former telecom minister A. Raja to then telecom secretary in November 2008 highlighted by Headlines Today, Swamy said, "I think there is one crucial paragraph in the note you have shown which I can testify is a genuine note because it's there in my file that I got from the CBI."

"Raja says let this telecom commission also consider this. Now the telecom commission proceedings, the minutes all further prove that it is the finance ministry which was pushing for this share dilution concept."

"Here are two companies, real estate companies. They don't have a single tower, they don't have any telecom equipment. They get a license. And two very well-established, even if they are black-listed, foreign companies want to buy shares of this company which are a paid-up capital of small amount and has no assets except spectrum license."

"This is a sham transaction in the name of share dilution. This is not a question of bringing a foreign direct investment. It is a question of how to get their hand on the license which otherwise they could have never got because they are black-listed," Swamy said.

He claimed that this act of then finance minister P. Chidambaram comes under the provisions of Prevention of Corruption Act (PCA).

"So the note has actually pointed out the dilemma of Raja. The prime minister got concerned so he wanted a meeting and it is Mr Chidambaram who was the author of this whole thing. And that's where the provision of Prevention of Corruption Act starts," he said.

Swamy expressed surprise at why the Central Bureau of Investigation (CBI) was acting like an ostrich in this case.

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