2G probe: Banks get clean chit from CBI

Public sector banks provided Rs 16,000-crore loans to operators

The Central Bureau of Investigation (CBI) has given a clean chit to public sector banks that had given huge loans to operators which secured telecom licences in 2008.

According to estimates, banks together gave about Rs 16,000 crore of loans to operators such as S Tel, Unitech, Datacom, Loop and Swan Telecom (Etisalat DB).

These banks include State Bank of India, Punjab National Bank, Bank of Baroda and Corporation Bank.

In its presentation to the Joint Parliamentary Comm-ittee looking into the 2G telecom spectrum scam, CBI said it had undertaken a detailed enquiry on the loans given for licences in 2008.

This was carried out by CBI’s banking securities and fraud cell.

However, prima facie, no major irregularity was detected.

The Supreme Court had directed CBI to probe the grant of loans by banks to companies that secured licences in 2008, as it was alleged officers of the department of telecommu-nications (DoT) were signatories for loans to the companies.

Questions had been raised on why these banks not only sanctioned huge loans, but continued to disburse the amounts even after CBI had filed reports against the operators and the Central Vigilance Commission had pulled them up.

There were allegations that the banks had provided the funds based on telecom licence papers alone, and these were signed by senior DoT officials, who have also come under the scanner.