BILLIONAIRE Anil Ambani, who controls India’s No. 2 mobile carrier Reliance Comm, yesterday met federal police in a widening investigation into a corruption scandal that has battered the government.
The 51-year-old tycoon is the latest and highest-profile executive in India to have met Central Bureau of Investigation (CBI) officials in the probe into whether mobile phone licences and radio spectrum were sold at below-market prices in return for kickbacks.
“During the course of his weekly visit to New Delhi, Anil Ambani met CBI officials today to clarify ongoing issues, relating to telecom matters for the years 2001 to 2010, and virtually every telecom operator in the country,” Mumbai-based Reliance ADA Group said yesterday (February 16).
No summons was issued to Ambani by the CBI, the statement said. “He went on his own to clarify certain issues,” Reliance ADA Group spokesman Daljeet Singh told reporters.
TV pictures showed Ambani, ranked by Forbes last year as the world’s 36th-richest man, getting out of a car at CBI headquarters in the Indian capital. Anil Ambani’s older brother Mukesh ranks 4th on the global rich list.
About three hours later, Anil Ambani left CBI headquarters through a side gate, avoiding waiting reporters, and got into a waiting Ambassador car.
Last week, a sudden selloff in companies in Anil Ambani’s Reliance ADA Group, including Reliance Infrastructure and Reliance Power, wiped $2.5bn (£1.54bn) from their value, which the company blamed on “baseless and motivated rumors” spread by rivals.
Late on Friday (February 11) night, the group said some of its executives were examined in the alleged telecoms graft probe.
“This was expected. CBI is talking to many players, they are broadening the investigation after directions from the Supreme Court,” said RK Gupta, managing director at Taurus Mutual Fund.
“I think one should not read too much into it, but you cannot rule out impact on ADA stocks tomorrow as this news came after market hours today,” he said.
A government audit late last year said Swan Telecom, now known as Etisalat DB, won licences even though a unit of Reliance Comm held more than 10 per cent of equity in the firm, a violation of rules. The audit also said Swan Telecom appeared to have been “acting as a front company” on behalf of the Reliance Comm unit.
Reliance Comm has denied any wrongdoing, and no charges have been filed against it or its executives. Reliance ADA Group yesterday said the group had not made any financial gain from Swan’s 2G licence win.
