M A I N   N E W S

2G scam linked to hawala deals: ED
R Sedhuraman
Legal Correspondent

New Delhi, March 15
The probe by the Enforcement Directorate (ED) into the 2G Spectrum scam has revealed hawala transactions involving transfer of huge amounts of money to other countries as well as into India.

According to ED’s status report submitted to the Supreme Court today, the department has so far examined 26 persons, including CEOs and other top officials of companies, in connection with the scam. In all, the ED wants to examine 31 executives.

Reading out portions of the report before a Bench comprising Justices GS Singhvi and AK Ganguly, senior counsel KK Venugopal said most of the transactions had come through the Mauritius route, the choice of investors of late.

The hawala network was spread over several countries, including tax havens like Isle of Mann, Cyprus, Jersey, Virgin Islands, Channel Islands and Singapore, besides Mauritius, he said.

The transactions were in violation of the Foreign Exchange Management Act (FEMA), Prevention of Money Laundering Act (PMLA) and the legal provisions aimed at checking forgery.

“It is a close network. They have network in various countries,” the Bench remarked on Venugopal’s submissions. Tomorrow, the CBI will submit its fresh status report on its investigations.

Venugopal said letters rogatory had been sent out to several countries, seeking details of such transactions.

According to the Comptroller and Auditor General (CAG), the allocation of 2G spectrum in 2008 to telecom companies at 2001 prices has resulted in a presumptive loss of Rs 1.76 lakh crore.

The SC Bench is hearing a PIL, filed on the basis of the CAG report, seeking SC monitoring of the probe by the CBI and the ED. The SC has already begun monitoring the probe.