2G-scam-CBI-arrests-former-telecom-minister-A-Raja

Source :NEW DELHI: PTI, Feb 2, 2011, 03.45pm IST:TOI


Former telecom minister A Raja was on Wednesday arrested along with his two former associates in connection with the 2G spectrum scam.

Raja arrived at the CBI headquarters on Wednesday morning, a day after his brother A K Perumal was questioned by the CBI about alleged funding of some front organisations owned by telecom companies which had been allocated spectrum from October 2007 to January 2008, official sources said.

Raja, his former personal secretary R K Chandolia and former telecom secretary Siddartha Behura were arrested for allegedly abusing their official position and manipulating the tendering procedures to benefit certain telecom companies in getting the spectrum.

The arrest of 47-year-old Raja, who has been questioned four times by the agency, comes over two months after he was forced to resign in the wake of the spectrum controversy.

Raja, who was questioned earlier on December 24 and 25 last year and January 31, was called to the CBI office this morning and quizzed before being arrested, the sources said.

The DMK MP had been confronted with some questions and documents recovered from the computers seized during searches conducted by the investigation agency earlier at his premises, the sources said.

He was also asked about his conversations with corporate lobbyist Niira Radia and the reasons for advancing the cut-off date of applying for license for spectrum allocation in 2007 by a week.

Raja was forced to resign on November 14 last year in the wake of the CAG report which held that the spectrum allocation at undervalued prices resulted in a notional loss of Rs 1.76 lakh crore to the state exchequer.

He got the telecom portfolio on May 18, 2007 and was re-elected as a member of the 15th Lok Sabha and continued as telecom minister from May 31, 2009, till November 14, 2010.

The Supreme Court has asked CBI and Enforcement Directorate to submit status reports on their investigations into the 2G spectrum case to it by February 10 when the case will come up for further hearing.

In its FIR, CBI mentioned the loss in spectrum allocation as Rs 22,000 crore based on CVC findings which had referred the case to it.

CBI has also questioned former Telecom Regulatory Authority of India (TRAI) chief Pradip Baijal, a 1966 batch IAS officer of Madhya Pradesh cadre, and former telecom secretary D S Mathur in connection with the case.

Vodafone, Essar name banks for valuation

Source :MUMBAI: TNN, Feb 2, 2011, 12.46am IST


With fissures developing between UK-based Vodafone and its Indian partner Essar Group in their joint venture -Vodafone-Essar-over the telecom company's valuation, both have appointed separate investment bankers to value the business. While Vodafone has appointed Goldman Sachs to value Essar's 33% stake in the joint venture, the Ruias are said to have brought on board Standard Chartered.

The two partners have been caught in a spat over the valuation of Essar's stake in the JV. The Indian group has proposed to reverse merge Essar Telecom Holdings (ETHL) into its listed group firm, India Securities. ETHL holds 11% of the Essar stake in the joint venture. This is intended to lead to price discovery of its stake in Vodafone Essar, which Vodafone has objected to and has filed an appeal against it in the Madras HC.

Vodafone said it was concerned that such a move could distort the valuation of the JV and that the value of India Securities could be misinterpreted as a fair market value of Vodafone Essar.

Essar, on the other hand, has said categorically that it is going ahead with the reverse merger despite some reports stating that it has shelved its plans. "There is no change in our plans to merge ETHL with India Securities. As we have stated before, the investment banks are free to choose whether or not to consider the listed value of ISL in their fair value determination," an Essar group spokesperson said. Vodafone has a 67% stake in Vodafone Essar, the third largest mobile service provider in India.

The deadline for the put option expires for Essar on May 8, as per an agreement the two companies had struck in 2007. Under the put option, if Essar sells it's 33% stake to Vodafone, it will get a guaranteed $5 billion but if it decides to go for a part sale-the value will be determined by investment banks from both the companies. In case the two companies do not agree to the valuation, a third bank will be mandated to arrive at a fair value.