Friday, Feb 18, 2011
NEW DELHI (Dow Jones)--An Indian court Friday sent Shahid Balwa, vice chairman of Etisalat DB Telecom Pvt. Ltd., to judicial custody until March 3 in a case related to irregularities in the allotments of telecommunications license and bandwidth in 2008.
He was in the custody of the Central Bureau of Investigation, India's top federal investigative agency, since late Feb 8.
The CBI has been scrutinizing the government's 2008 sale of mobile phone licenses and bandwidth at 2001 prices.
The agency estimates the government lost more than $4.88 billion of potential revenue due to the irregularities. A report by a federal auditor estimates the potential losses at close to $40 billion.
The agency has named Swan Telecom Pvt. Ltd., which was later renamed Etisalat DB, among the beneficiaries of the allegedly rigged license sale. Balwa is a co-founder of Swan, and also of real-estate company DB Realty Ltd.
The CBI has arrested four people, including former telecom minister A. Raja and Balwa, in the case. All have denied any wrong doing.
-By R. Jai Krishna, Dow Jones Newswires; +91-9967586928; romit.guha@dowjones.com
(END) Dow Jones Newswires
18-02-11 0925GMT
