Tata-Unitech deal: SFIO to submit probe report on Vaishnavi PR

Report assumes significance as it may include findings related to Rs 1,700-crore transaction between Tatas and realty firm Unitech

The corporate fraud investigative wing of the government, Serious Fraud Investigation Office (SFIO), is likely to submit its report on Vaishnavi Vaishnavi Corporate Communications case within a fortnight, an official said. The report assumes significance as it may include findings related to a Rs 1,700-crore transaction between the Tatas and realty firm Unitech in 2007, which was part of the 2G spectrum allocation case.   

While on the 2G case, the Central Bureau of Investigation (CBI) had in October 2011 told the joint parliamentary committee probing the scam that there was no evidence of any irregularity in the Tata-Unitech deal and that it could not be linked to the spectrum scam.  

A related case — former lobbyist Niira Radia’s taped conversation on 2G and other matters — is expected to come up for hearing in the Supreme Court on Tuesday. Radia headed Vaishnavi till two years ago and the firm’s clients included Tatas and Reliance Industries. “The SFIO probe is related to activities of a PR company called Vaishnavi. During the investigation, you find various things and in this case, one of the findings is related to Tata-Unitech deal,” the official said, adding the case was primarily being handled by the SFIO’s  Mumbai branch.

Ministry seeks report
Meanwhile, the minister for corporate affairs, Sachin Pilot, said his ministry had asked SFIO to provide a status report on the probe. “The MCA (ministry of corporate affairs) has so far received no such report. I have asked the agency (SFIO) to come and brief me as to what the status of the report is,” Pilot told reporters on the sidelines of an event organised here.

Tata Realty did not reply to a Business Standard questionnaire on the matter.

Last year, the ministry ordered an investigation into the affairs of Vaishnavi. SFIO had also issued notices to nine companies, associated with Radia, seeking detailed information regarding financial accounts and transactions in the last few years. The nine companies under scrutiny are Vaishnavi Corporate Communications, Vaishnavi Advisory Services, Leisure Clubs India, Claro Consultancy, Magic Airlines, Maansi Agro, Crownmart International India, Vitcom Consulting, and Neucom Consulting Pvt Ltd.