Unitech says no wrong done during 2G allocation

NEW DELHI, INDIA: With the CBI probing the manner in which telecom licences were awarded to new entrants, one of the companies under the scanner, Unitech, Thursday said it had done nothing wrong during the licensing process.

"Unitech Ltd. has not sold any shares held by it in Uninor to the Telenor Group. It is highly incorrect to allege that any favour was shown to Unitech during the licence process," said the company in a statement.

Unitech, a real estate firm had bought telecom licence for 22 circles for Rs.1,658 crore and sold 76 percent of the equity to Telenor, a Norwegian telecom firm, for Rs.6,100 crore.

The company also said that it obtained the telecom licences through its 8 wholly-owned subsidiaries along with 8 other players after complying with the necessary formalities prescribed in the telecom guidelines at a cost determined by the government.

The company has been accused of receiving favourable treatment during the awarding of second generation (2G) spectrum licences in 2008.

Earlier former communications minister A. Raja and two of his aides were arrested by the Central Bureau of Investigation (CBI) for their suspected role in the multi-billion rupee scam over the allocation of airwaves for 2G phone services.

Raja and his allies will spend the next five days in the custody of the CBI, a special court directed Thursday.