properties

The Enforcement Directorate (ED) has told the Supreme Court that it will ‘attach’ the properties of two companies – Unitech wireless and Swan Telecom – allegedly involved in 2G scam within 2 months. At 10:08 am, shares of Unitech were trading 4.45% down at Rs 38.65 and shares of DB Realty were trading 4.07% down at Rs 99 on the Bombay Stock Exchange. “The properties of the (telecom) companies worth Rs 2000 crore will be attached,” said senior counsel KK Venugopal on behalf of ED – that investigates money laundering and probes violation of rules governing foreign exchange – to a bench comprising Justice GS Singhvi and Justice AK Ganguly. On Wednesday, ED presented a fresh status report, giving the Supreme Court, an updated account of its investigation. Venugopal, however, did not name the two companies in the open court. But he seemed to be referring to Unitech and Swan which have been accused of getting mobile services licences cheap by conspiring with former telecom minister A Raja. Attachment refers to the process of identifying properties that ED thinks is part of the proceeds of crime so that they cannot be sold. The fact that Venugopal was referring Swan Telecom, now known as Etisalat DB and Unitech Wireless could be inferred from the fact that immediately after the reference to attachment, he spoke on the first chargesheet filed by the Central Bureau of Investigation before a Delhi Court on April 2. He named the two companies-Unitech Wireless and Swan — as beneficiaries of the ’scam money’ . The court then asked the ED counsel how long the entire process of attachment of properties was expected to take. “Within two months the entire process of attachment of the properties of the companies and adjudication under the provisions of the FEMA (Foreign Exchange Management Act) and PMLA (Prevention of Money Laundering Act) will be completed,” was Venugopal’s reply. Venugopal said ED needed two months as “huge benami properties were involved” . Adjudication is a quasi-judicial process, usually carried by the ED itself, in which those accused of wrong-doing can defend themselves . ED was likely to send notices to the promoters of the two companies and the companies themselves , within the next two weeks, according to people close to the investigation . A spokesperson for Unitech said these developments will not affect its real estate business. “Reports suggest that the ED will attach properties of some telecom companies named in the CBI charge-sheet . Unitech, a company engaged in real estate development, has not been named in the CBI chargesheet . We would like to further clarify that this on-going matter pertains to Unitech Wireless, which is a separate venture in the telecom business. Further, this matter will not have any adverse affect on Unitech and/ or its real estate business,” said the spokesperson. In the status report placed before the apex court on Wednesday ED also said it has started investigations into 5 companies alleged floated by the sister of corporate lobbyist Niira Radia in British Virgin Islands under the Foreign Exchange Management Act or FEMA. At this Justice Ganguly asked, “she is the sister of same person whose name has figured in the scam? Venugopal replied in the affirmative . He was apparently referring to corporate lobbyist Radia’s sister . He also said huge money was involved in the scam as fresh revelations were coming to the fore. “If the bribe money was Rs 3,000 crores, then the FEMA violations were suspected to the tune of Rs 4,000 crores,” said Venugopal. At this, Justice Ganguly said, “the figures are getting multiplied by the day” .