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2G SCAM|SHAHID BALWA TARGETS RATAN TATA|RATAN TATA 2G SCAM ISSUE|RATAN TATA THE NEXT TARGET IN 2G SCAM

There is a new twist in the 2G spectrum scam case. Swan Telecom promoter Shahid Balwa, accused of being one of the main beneficiaries in the scam, has targeted Ratan Tata and the CBI for going soft on him.

Balwa's lawyer Vijay Aggarwal argued that the CBI is biased towards Tata and has therefore targeted telecom companies selectively.

To back his claim, Mr Aggarwal produced in court, several letters between Mr Tata and former Telecom Minister A Raja.

In one such letter dated September 10, 2009, Raja wrote to Tata, "It was requested that the cheque of the of the entire amount of Rs. 20 crore may be made 'as a special case' as an upfront payment in the name of the hospital authority...I request you to please look into the matter personally to see that the entire amount of Rs. 20 crore is released to the Government of Tamil Nadu at the earliest..."

In his reply, explaining the delay in sending funds Ratan Tata wrote on September 15, 2009: "I wish to inform you that we have never made a grant of this size to any external recipient in the Trust's history...The grant to the Perambalur Hospital was given as a very special case, after considerable deliberation amongst the Trustees, which include independent persons.

Balwa's charge is that there was a quid pro quo between Tata and Raja on spectrum allocation. Yet the CBI has not even investigated Tata, and are only going after companies like his.

Reacting to the allegations, Tata Sons in a statement have said, "We are not aware of the contents of the letters produced in the court. It is a fact that Mr RN Tata was approached in 2008-2009 about a grant of Rs. 20 crore from Tata Trusts for the Perambalur Medical College Hospital, but that grant was ultimately not given."

Swan Telecom is one of the beneficiaries of the 2G scam and is alleged to be a front company for Anil Ambani owned Reliance Communications. Shahid Balwa is already in custody in connection with the case. He was arrested by the CBI on February 8.

In 2008, when he was Telecom Minister, A Raja gave away valuable spectrum at throwaway prices to companies including Balwa's Swan Telecom. Balwa allegedly repaid Raja Rs. 214 crore. Investigators believe the bribe was paid via a Mumbai company named Cineyug Films to Kalaignar TV.

The spectrum allocation case led to the resignation of Telecom Minister A Raja. He was later arrested and is still in custody.

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