Unitech Ltd. MD Sanjay Chandra, facing trial in the 2G spectrum case, on Monday told a Delhi court that applications for grant of 2G licences filed by rival Shyam Telelink Ltd, which has entered into a joint venture with Russia’s Sistema, were required to be “summarily rejected” as there were defects in it.
Mr. Chandra alleged Shyam Telelink took “advantage” of net worth of Sistema to apply for UAS licences without entering into agreement before the September 25, 2007, cut-off date.
These arguments were made by Mr. Chandra’s counsel Rebecca John, who was cross-examining T Narasimhan, a prosecution witness and Deputy CEO of Indo-Russian joint venture Sistema Shyam Teleservices which operates under the brand name MTS.
Mr. Narasimhan, however, denied all the allegations levelled by Mr. Chandra’s counsel and during his deposition before Special CBI Judge O P Saini said applications for UAS licences were filed by Shyam Telelink based on the net worth of Sistema JSFC.
“It is wrong to suggest that the applications filed by Shyam Telelink Ltd were full of defects and were required to be summarily rejected by the DoT. It is wrong to suggest that Shyam Telelink took advantage of net worth of Sistema, though by that time it had not even entered into an agreement with it.
“It is wrong to suggest that promoters of Shyam Telelink sold their shares to Sistema and made huge profits in the bargain,” Mr. Narasimhan said, adding “the shares were sold at par”.