2G scam: ED grills Unitech MD for routing Rs 240cr to tax haven in Isle of Man

NEW DELHI: Unitech MD Sanjay Chandra, an accused in the 2G scam, who got bail in end-November, was grilled by the Enforcement Directorate twice in the last 10 days for a transaction of around Rs 240 crore. The transaction was detected during the trail of 2G probe in tax haven, Isle of Man. The sum is suspected to be part of the payoffs made in the allocation of 2G telecom licences during former minister A Raja’s tenure.
Chandra’s subsidiary company Unitech Overseas Ltd in Isle of Man had invested $51,000,000 (about Rs 240 crore) in a derivative product through the Netherland’s Rabobank. The derivative purchased was linked to the performance of a Mauritian firm, Pluri Emerging Companies PCC Cell.
Unitech Ltd, Chandra’s parent company, had provided an undertaking to Rabobank to make good the loss on the investment when the bank hedged such a big bet on an unknown firm whose credentials were not well established.
Both the Netherlands and Isle of Man alerted authorities here after Chandra’s Rs 240 crore investment in Pluri turned into a zero sum instrument within a span of few months. The CBI and the ED are investigating the trail of transactions related to the scam. The probe is in advance stages in the Netherlands, Mauritius and Isle of Man.
Chandra’s subsidiary in Isle of Man bought this derivative product, the one-year Yield Enhancement Certificate linked to Pluri Emerging Compnaies on January 3, 2008. The spectrum licences were allocated on January 8, 2008. And, Indian authorities were informed after the investment certificate expired in 2009.
It is suspected that the transaction could have been made to transfer the illicit payments through Pluri Emerging Companies. Chandra has been asked to substantiate about beneficiaries of investment made in Pluri’s PCC Cell.
Chandra has been cooperating with the agencies on the money trail. “We wish to state that since the beginning of 2G case investigation, Sanjay Chandra and Unitech Ltd has always cooperated with all agencies. Since his bail on November 23, Chandra remains committed to cooperate further on and is duty bound to respond to all queries in accordance with law,” a Unitech spokesperson told TOI.
The company, however, defended its investment in Pluri. “All Unitech Ltd’s subsidiaries, either in India or aborad, and their financial details form a part of our annual reports and we are confident of no wrong-doing or any transgression from well established laws of the region on part of these subsidiaries,” it said.
Earlier, the CBI and the ED had unearthed a transaction of Rs 214 crore that the agencies found was pay-offs made to Kalaignar TV, owned by daughter and wife of DMK supremo M Karunanidhi. The money was paid to Kalaignar by Cineyug Media and Entertainment Pvt Ltd, owned by Asif Balwa of D B Realty, the firm that had acquired stakes in Swan Telecom. Like, Unitech, Swan was beneficiary of 2G licences allocated during former telecom minister A Raja’s tenure.