Court told Unitech was ready for 2G spectrum in advance

Unitech Ltd, facing trial in the 2G spectrum allocation case, had readied itself four months in advance with the demand draft to secure the government's letters of intent (LoIs) for grant of radio waves to it, a former executive of the firm told a Delhi Court on Wednesday.

Mohit Gupta, who worked as an executive in Unitech Ltd from March 2007 to May 2010, told the court that the firm had got its demand drafts ready in October 2007 itself as an "act of preparedness" despite it amounting to blocking huge money.

"This was done despite the fact that it amounted to blocking huge amount of money," he told Special CBI Judge OP Saini.

Testifying as a prosecution witness, Gupta said Unitech Ltd had prepared the demand drafts in October 2007 and got them re-validated in December 2007.

"It is correct that the company (Unitech Ltd) had got its demand drafts prepared in October 2007 itself and got them re-validated in December 2007 and this was done as an act of preparedness as, as and when LoIs were to be issued, we must be ready," he said.

His statement assumes significance as the CBI, in its charge sheet, had alleged that Unitech Ltd and Swan Telecom Pvt Ltd, accused in the case, had "prior knowledge" of the first-come-first-served process and they were keeping the demand draft ready since early October-November 2007 itself.

During the cross examination, Gupta said the company had "first attempted" to file the applications for Unified Access Service Licences (UASL) in the Department of Telecom (DoT) on September 21, 2007 but it could not be deposited as they were not carrying the applications in duplicate.

The applications were finally filed on September 24, 2007, he said.

Gupta, whose recording of statement was concluded today, said the distribution of LoIs on January 10, 2008 at the DoT was "transparent and non-discriminatory".

During the proceedings, the court also recorded the statement of S-Tel Pvt Ltd consultant Rupender Sikka, who said when he joined the company in August 2007, he came to know that the firm had applied for UASL for six telecom circles.

He said after he reached DoT office on January 10, 2008, AK Srivastava, a senior DoT official, had briefed all telecom firms' representatives about the distribution of LoIs as well as the first-come-first-served policy.

During the cross examination, Sikka denied that due to close contact between DoT officials and S Tel officials, the LoIs were handed over to S Tel Director Santosh Robert despite the authority letter for the firm being in his favour.

"LoI was handed over to Santosh Robert as he was authorised to get it, being the director of the company. Only DoT officials can tell as to why they handed over the LoIs to the director, who was not having any authority letter in his favour.

"It is wrong to suggest that on account of close contact between DoT officials and S Tel officials, procedures were relaxed and LoIs were handed over to a director without any authority letter in his favour," he said.

Sikka, whose recording of statement also concluded today, said he had no idea if S Tel was allocated spectrum along with other companies, which had applied for UASL and spectrum before S Tel.

He also denied that he was made a CBI witness as per a "deal to save S Tel company" and to implicate other genuine companies.