2G scam: Reliance official deposes as prosecution witness

A CBI witness today told a Delhi court, hearing the 2G spectrum case, that Tiger Traders Pvt Ltd, Parrot Consultants Pvt Ltd and Zebra Consultants Pvt Ltd, alleged associates of Reliance ADA Group, were inter-locked among themselves holding 50 per cent shares of each other.

Paresh Rathod, Deputy General Manager of Reliance Powers Ltd, told Special CBI Judge OP Saini that such inter-locking of companies is known as "cross-holding" and it is a normal practice.

"As such, as on March 31, 2006, all three companies (Tiger Traders Pvt Ltd, Parrot Consultants Pvt Ltd and Zebra Consultants Pvt Ltd) were inter-locked amongst themselves as each was holding 50 per cent shares of one another. Such inter-locking of companies is known as cross-holding and this is a normal practice," Rathod said.

Rathod, whose recording of statement concluded today, said shell and shelf companies are same and the business team of Reliance ADAG decides whether the group should conduct business through a shelf company.

"Shell companies are also known as shelf companies. Business team decides as to when and how a shelf company is to be deployed for active business. Generally, the business team decides this as to whether Reliance ADA Group should conduct business through a shelf company, joint venture or in collaboration with others.

"It is the business team which decides whether a shelf company is to be sold or handed over to any outside entity," he said.

During his cross examination, Rathod said 33.34 per cent shares of Parrot Consultants Pvt Ltd, 25 per cent shares of Tiger Traders Pvt Ltd and 25 per cent shares of Zebra Consultants Pvt Ltd were subscribed to him.