2G scam: CBI cannot be forced to use Law Ministry report

New Delhi: CBI today told a Delhi court that it cannot be forced to rely on an opinion of the Law Ministry which said a firm should have more than 10 per cent stake in another for being termed its associate.

Special Public Prosecutor U U Lalit told CBI Judge O P Saini that the opinion, which is now a part of the records, cannot be used as a document of the CBI at the time of framing of charges against the accused.

“It is true that the document (the report) is there on record but then who has proved the document? What was the basis when the opinion was formed and in what capacity, the opinion was written. It is a subject of investigation.

“In the entire scheme of the CrPC, this report cannot be accepted as a relied upon document,” Lalit said.

“At best, the Law Ministry report can be taken as an opinion of a department or an official,” he said.

He said at this juncture, only three things are to be considered by the court.

“Firstly, the documents submitted by the prosecution which are relied upon by it. Secondly, such examination of the accused as the court considers it necessary and thirdly, the arguments of prosecution and defence counsel on this matter,” the prosecutor said.

The court, on September 19, had directed the CBI to file the Law ministry report.

Reliance Telecom Ltd (RTL) and Swan Telecom Private Ltd(STPL), an alleged beneficiary of the scam, have been taking the defence that they were not “associate” firms as RTL’s stake in STPL was below 10 per cent, as mandated under the guidelines for the Unified Access Service (UAS) Licenses.

The counsel for RTL and its three accused officials said that the Law ministry report was a crucial document which has been brought on record following the court order.

“It is clear that accused cannot place documents on record at the time of framing of charges but have we placed the report on record? This court has ordered the CBI to place the report,” he said.

Essar Telecom, which allegedly created Loop Telecom as its front company to get licenses, has taken the same plea.

CBI, on the other hand, has been alleging that STPL was an associate firm of RTL created to circumvent the then guidelines of DoT which debarred existing CDMA players from venturing into GSM segment.

RTL later passed on the control of STPL to promoter and co-accused Shahid Usman Balwa after the DoT allowed it to avail the facility of dual technology, the agency had said.

Law Secretary D R Meena, in his report to the DoT, had said the term “associate” could be determined only by applying the “share-holding” test between telecos.

PTI