Argument in court cannot be construed as evidence: Sibal

Attacking the BJP for demanding resignation of Prime Minister Manmohan Singh and Home Minister P Chidambaram on the 2G issue, Telecom Minister Kapil Sibal today said submission by an accused, former telecom minister A Raja, in a court cannot be construed as an evidence.

Raja has said in the court that the matter (dilution of equity by two licencees Unitech and Swan Telecom) was discussed between the Prime Minister and the then Finance Minister Chidambaram.

"At the outset, submission by an accused before a court at the time of framing charges cannot be construed as evidence. In any case, this issue has nothing to do either with grant of licences or the pricing of spectrum," Sibal said.

He, however, asserted that as far as the alleged sale in Swan and Unitech are concerned it is clarified that what occurred was "not sale of the equity but issuance of additional equity".

In October, 2007 Swan issued additional equity to DB Infra and in February, 2008, issued additional equity to Etisalat. The additional equity issued to Etisalat was less than 49 per cent, and hence entitled to automatic route as per existing FDI Policy.

In the case of Unitech, the additional equity issued to Telenor was given FIPB approval in August, 2009. It was also cleared by the CCEA on October 19, 2009, Sibal said.

It is clarified that in both these cases what occurred was dilution of equity and not the sale of equity.