Monday 11 July 2011
2G spectrum scam fallout
the Supreme Court that it plans to attach properties of DMK-controlled Kalaignar TV under the Prevention of Money Laundering Act in a month.
This is for the Rs.200 crore Swan Telecom allegedly paid it as quid pro quo for 2G spectrum allotted to the teleco by the then telecom minister A Raja. The ED also told the court that it will complete attachment of assets of Etisalat DB (formerly Swan) for alleged violations of foreign direct investment norms.
Senior counsel KK Venugopal presented a fresh status report on ED investigations in the 2G scam to a bench comprising Justice GS Singhvi and Justice AK Ganguly. Foreign Exchange Management Act violation complaints against DB group, Virgin Mobile , Milky Way Developers and ETA Star group have also been noticed in its preliminary inquiry, the ED counsel said.
Reading out part of ED's report, Venugopal said there was Fema violation totaling Rs.2,100 crore in the four cases. According to ED official, the four companies had brought in foreign investments without complying with mandatory requirement of prior intimation of the Reserve Bank of India.
Venugopal said that ED will start attaching properties after filing chargesheets in the 2G spectrum scam case. Under the Prevention of Money Laundering Act, or PMLA, the attachment proceedings were independent of the trial. Adjudication and confiscation of properties could take place even during pendency of the trial.
This is for the Rs.200 crore Swan Telecom allegedly paid it as quid pro quo for 2G spectrum allotted to the teleco by the then telecom minister A Raja. The ED also told the court that it will complete attachment of assets of Etisalat DB (formerly Swan) for alleged violations of foreign direct investment norms.
Senior counsel KK Venugopal presented a fresh status report on ED investigations in the 2G scam to a bench comprising Justice GS Singhvi and Justice AK Ganguly. Foreign Exchange Management Act violation complaints against DB group, Virgin Mobile , Milky Way Developers and ETA Star group have also been noticed in its preliminary inquiry, the ED counsel said.
Reading out part of ED's report, Venugopal said there was Fema violation totaling Rs.2,100 crore in the four cases. According to ED official, the four companies had brought in foreign investments without complying with mandatory requirement of prior intimation of the Reserve Bank of India.
Venugopal said that ED will start attaching properties after filing chargesheets in the 2G spectrum scam case. Under the Prevention of Money Laundering Act, or PMLA, the attachment proceedings were independent of the trial. Adjudication and confiscation of properties could take place even during pendency of the trial.
