TNN | Apr 11, 2011, 12.53am IST

http://timesofindia.indiatimes.com/india/2G-scam-ED-invokes-tough-money-laundering-Act-against-Raja/articleshow/7938376.cms

NEW DELHI: The Enforcement Directorate has initiated proceedings under the stringent Prevention of Money Laundering Act against former telecom minister A Raja and will call him for interrogation some time next week.

ED intends to begin the process of attaching properties found to be linked to proceeds of payoffs allegedly linked to the allocation of 2G spectrum licences in 2008 when Raja was minister, official sources said.

Others summoned under the Act include three top executives of Reliance Telecom, former telecom secretary Siddharth Behura, Raja's private assistant R K Chandolia and DB Realty's Sahid Balwa. Barring the Reliance officials, all others are in judicial custody in cases registered by CBI. ED will seek court permission to question them.

Reliance Anil Dhirubhai Ambani Group (ADAG) is being investigated with ED invoking the money laundering Act against three executive – group managing director Gautam Doshi and vice-presidents Hari Nair and Surendra Pipara. All three have been named in CBI's first chargesheet filed on April 2.

Notices seeking their appearance for questioning have been sent and ED will move for attachment of properties in their cases as well.

In CBI's chargesheet, Reliance ADAG has been named only for abetment to cheating while other players in the scam, including Raja and his associates, were slapped with charges of cheating, criminal conspiracy, forgery and bribery.

ED found in its probe that Reliance Telecom had alleged links with Swan, something CBI is yet to establish. Reliance Telecom held 9.9% equity in Swan when the latter applied for telecom licences. Reliance's holding in Swan was transferred to Delphi Investment Ltd, Mauritius on December 5, 2007.

Investigations revealed that Delphi was incorporated only on October 15, 2007. Delphi still holds 4.27% equity in Swan Telecom.

Delphi is owned by Mavi Investment Fund Ltd, Mauritius. ED has called Reliance Telecom officials to reveal identities of those behind Mauritius-based Delphi and Mavi and provide transaction details of Reliance Telecom with Delphi for transfer of its equity in Swan.

ED is also probing takeover of Allianz Infra Tech, the company which was allotted licence for MP and Bihar in July 2008, by Swan Telecom through DB Group companies.

Unitech Wireless managing director Sanjay Chandra and DB Realty's Vinod Goenka are among others who have been summoned, sources said.

The ED is also looking into Foreign Exchange Management Act violations by Aircel Ltd. Aircel was purchased from the Seychelles-based Shiva Group headed by S Sivasankaran by Apollo Hospitals allegedly through a Mauritius-based company.

Now, ED is probing a transaction of Rs 50 crore made by Shiva Group in 2007 with Kalaignar TV, which is owned by members of DMK chief M Karunanidhi's family.

ED investigation found that Shiva Group had "indirectly" provided funds to S-Tel through its group company Hitech Housing Projects Pvt Ltd. This company had provided a loan of Rs 50 crore to Kalaignar TV in June 2007 through Sahara Group companies and Telecom Investments (Mauritius) Ltd.

In its probe against Reliance, ED observed allotment of only three shares by Swan Telecom against Rs 316 crore to Etisalat was a design to escape mandatory approval from Foreign Investment Promotion Board. "Had these shares been issued at predetermined price of Rs 285 per share, the net share holding of Etisalat would have gone above 47%. And to this, if the Delphi holding of 4.27% was added, the total shareholding would cross 51%. It was by design that to manage the threshold of 49% equity under automatic route, both Swan Telecom and Etisalat agreed to an abnormal price," ED said.