Mumbai: The Central Bureau of Investigation (CBI) has got two-day transit remand of Shahid Usman Balwa, the promoter of DB Realty. Balwa was sent to the remand by a special CBI court in Mumbai.
While granting CBI the remand of Balwa, the special court observed that since the investigating agency has former telecom minister A Raja in its custody it is likley that he may has divulged something in his interrogation. "The CBI may need to confront Balwa and Raja," the court observed.
He was arrested on Tuesday night from his Bandra residence in Mumbai in connection with the multi-crore 2G spectrum scam and will be sent to New Delhi later on Wednesday.
Before being produced in the court Balwa was taken to St George Hospital for a regular medical check up.
Sources say Balwa is suspected of investing in various front companies on behalf of former telecom minister A Raja and some of his aides.
However, DB Realty claimed that Balwa was being wrongly implicated in the case.
"Mr Shahid Balwa the Managing Director of DB Realty Limited has been wrongly implicated in the investigations pertaining to the grant of 2G licenses and has been arrested by the CBI on the night of 8th February 2011 in that context. We reiterate that neither Mr. Balwa nor any person / entity forming part of the DB Group has done anything inappropriate or illegal. Mr. Balwa will be strongly contesting the proceedings. He has immense faith in our judiciary and judicial system and is confident that ultimately the truth will prevail and Mr. Balwa will stand vindicated," said DB Realty in a statement issued on Wednesday.
"We would also like to state that these developments will not affect the functioning of DB Realty Limited in any manner whatsoever. DB Realty Limited will continue its business in the normal course under Managing Director, Mr Vinod Goenka along with the top tier team under the guidance of its Board. We assure all our stakeholders that their interest in the Company will be protected," the statement added.
DB Realty and Etisalat had taken over Swan Telecom, one of the companies that got the 2G license by allegedly presenting pre-dated drafts when Raja suddenly changed the criteria of granting license.
Balwa had been summoned twice by the CBI but was arrested after he allegedly refused to make himself available for questioning.
Raja allegedly helped Swan bag 2G licences for 13 circles, including Mumbai and Delhi, for Rs 1,537 crore but Swan sold 45 per cent shares to the UAE telecom giant Etisalat for approximately Rs 4,500 crore within months of bagging the spectrum.
Balwa is the fourth person to be arrested in 2G spectrum case after Raja, his former personal secretary RK Chandolia and former Telecom Secretary Siddharth Behuria.
(With inputs from PTI)
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