2G scam: Supreme Court dissatisfied over tardy tax evasion probe

The Supreme Court today expressed displeasure over the tardy pace of probe by the income tax (I-T) department into the tax evasion cases linked to second-generation mobile telephony spectrum case, saying it wanted "results".

A bench of Justice GS Singhvi and Justice AK Ganguly directed the department to file a detailed report on action taken by it during the last three years when it got a complaint in this regard and began tapping corporate lobbyist Nira Radia's telephone.

"The IT department must be quicker. This is not a normal case of tax evasion. It (probe) should have been done fast. These are not ordinary cases to be handled in ordinary way," the bench said.

The department, however, defended its ongoing probe saying that the investigation has entered the "fifth layer" and the approach towards the case has not been tardy.

The court, however, was not satisfied and said, "We are not concerned about layers but results."

The bench allowed the IT department to approach the special judge, trying the 2G case, to interrogate company officials who are in judicial custody for their alleged role in the scam.  

The bench also agreed to hear a plea by petitioner, the Centre for Public Interest Litigation (CPIL), for appointment of two independent persons to assist the court in monitoring the probe by various government agencies in the scam. The CPIL had made the plea alleging that "big players are being let off".

The court also assured the petitioners, CPIL and others, that all the persons involved in the scam will be brought to justice irrespective of their wealth, position and power.

"You (petitioner) rest assured that no person, irrespective of their chair and wealth, could get immunity in any way," the bench said, adding "investigation in the case has made some progress which would not not have been possible in normal circumstances."

CBI, meanwhile, contended that no person would be let off as investigation is still going on against Reliance and Tatas for their involvement in the scam.

The investigating agency also submitted that it will file fresh status report on the ongoing investigation in 2G scam after the summer vacation.

The court after hearing all sides posted the matter for further hearing on May 13, when it would delve into the plea for appointment of independent person to assist the court in monitoring the probe.

The CPIL had made the plea for setting up a panel for monitoring the probe into the 2G scam alleging that "big players" involved in the scam are being let off.

It had alleged that Shahid Usman Balwa-promoted Swan Telecom and Loop Telecom were the front companies for RCom and Essar Group respectively while the Tatas were benefitted for funding a Tamil Nadu-based NGO whose director was DMK MP Kanimozhi.

It had said that Tata Teleservice was benefitted in grant of Unified Access Service Licence (UASL) for its dual technology as Tatas had funded the NGO run by Kanimozhi but CBI was not moving against them.

The CPIL had alleged that investigation has gone cold over the alleged involvement of Prashant Ruia and Tatas in the scam.

Advocate Prashant Bhushan, appearing for CPIL, had said that RCom, which was ineligible for the 2G licence, had financed Swan Telecom and its chairman Anil Ambani, who has 50 per cent stake in the company, has not been touched by CBI despite being the real beneficiary.

"The real beneficiary is Anil Ambani, who holds majority stake and is chairman of the group companies. CBI has tried to shield him and has only chargesheeted the employees," he had contended.

It had also pointed out loopholes in the CBI charge sheets relating to the alleged involvement of RCom's chairman, while saying that only his three employees have been targeted.

"These people are just professional employees of the ADA group and are not the beneficiaries of this scam," the CPIL had said.