Swamy testifies in 2G case

Alleges Chidambaram allowed Swan Telecom and Unitech to offload shares.

Janata Party chief Subramaniam Swamy on Saturday testified against home minister P Chidambaram in a trial court, in the 2G spectrum scam case. Swamy quoted from the minutes of a meeting between then-finance minister Chidambaram, and A Raja, who was the telecom minister at that time. “The FM (finance minister) said for now, we are not seeking to revisit the current regimes for entry fees and revenue share”. In another instance, Swamy referred to Chidambaram’s clarification in 2008 that dilution of shares did not amount to the sale of licences.

Swamy alleged Chidambaram was as guilty as Raja in the 2G spectrum allocation scam of 2007-08. Special Central Bureau of Investigation (CBI) judge O P Saini asked Swamy to continue with his statement on January 7.

Swamy also said Raja should not be the only one held guilty in the case, since he had actively connived with Chidambaram. He alleged Chidambaram had allowed Swan Telecom and Unitech to offload their shares, allowing “anti-national and undesirable companies to buy stakes” in the two companies. On the meeting between Chidambaram and Raja on November 5, 2008, Swamy said, “The FM clarified dilution of shares to attract foreign investment for business expansion did not amount to the sale of licence. And, these companies did their share dilution according to corporate laws.”

“This, despite the fact that the home ministry had raised objections to the financial transactions by Etisalat in India, as Etisalat was a blacklisted company,” he said. Etisalat had picked up a substantial stake in Swan Telecom.

Quoting the minutes of the meeting between Chidambaram and Raja on January 31, 2008, Swamy said, “The telecom minister met the finance minister on Saturday on the subject of spectrum charges. The FM said for now, we’re not seeking to revisit the current regimes for entry fees and revenue share”.

Swamy said Chidambaram was aware the cabinet decision of 2003 empowered him and Raja to jointly decide on spectrum pricing. Sway said Chidambaram had, in a letter dated January 15 2008 and addressed to the prime minister, said the department of telecom and the finance ministry would discuss and finalise the spectrum pricing formula, which would include incentives for the efficient use of spectrum.

The court had, on December 8, allowed Swamy to testify in support of his private complaint seeking Chidambaram’s prosecution in the case.

Of the 17 accused in the 2G spectrum scam case, 14 are individuals — former minister, bureaucrats, members of Parliament, industrialists and company executives. Of these, 12 are out on bail. Apart from Raja, who is yet to apply for bail, former telecom secretary, Siddharth Behura, is still in jail. Behura’s bail plea was rejected by the Delhi High Court yesterday.