2G scam probe: Anil Ambani meets CBI

NEW DELHI, INDIA: Billionaire Anil Ambani, who controls India's No. 2 mobile carrier Reliance Communications, on Wednesday met with the Central Bureau of Investigation  (CBI) officials over a probe into a widening corruption scandal, which has already battered the government.

The 51-year-old tycoon is the latest and highest-profile executive known to have met with CBI officials this week over a probe into whether mobile phone licences and radio spectrum were sold at below-market prices in return for kickbacks.

Allegations that the government may have lost up to Rs. 1.76 lakh crore in revenue as a consequence have caused months of parliamentary paralysis, rocked the ruling coalition and rattled India's financial markets.

The corruption scandal, which has brought down a former telecoms minister, who is now under arrest, is considered one of the biggest to hit India.

"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 RCom said in a statement.

"No summons of any kind have been issued by CBI to Mr. Ambani," the statement added.

CBI spokeswoman Binita Thakur said she could not confirm Ambani had been summoned, saying "maybe we can give you some news later in the evening."

The CBI has summoned several other executives from the sector to answer questions regarding the probe into whether there were any irregularities in the sale of licences and spectrum allocation from 2007 to 2008.

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 percent 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 Communications unit.

Reliance Communications has denied any wrongdoing.

CBI has arrested Andimuthu Raja, the former telecoms minister, and a senior official of Etisalat's local unit, whose Indian partner is also accused of receiving favours.