HFCL’s Nahatas under CBI lens in 2G spectrum scam probe

The heat and dust over allocation of 2G (second generation) telecom spectrum refuses to abate.

The latest to come under the scanner of the Central Bureau of Investigations (CBI), which is probing the alleged irregularities in allocation of 2G spectrum during former telecom minister Andimuthu Raja’s regime, are the Nahatas of telecom equipment manufacturer Himachal Futuristic Communications Ltd (HFCL).

According to sources in the know of information dug out by the investigative agency, the Nahatas had applied for 2G licence in 2008.

The Nahatas, who were allocated a pan-India licence to run GSM-based mobile telephone services, formed Datacom and sold 64% stake in it to the Dhoots of Videocon Group.

They finally exited the venture in 2010 by offloading their entire stake to the Dhoots at a premium after engaging in a bitter battle.  According to a source, the Nahatas are said benefited by `400 crore from the licence.  Attempts to reach HFCL chairman Mahendra Nahata were unsuccesful.

The source said Nahata was able to secure the 2G licence as he already had experience of operating in the telecom sector and knew how the “telecom ministry machinery worked.”

The source, however, could not give exact details of how the kickback money was routed to Raja and his associates.

Before the mobile phone services licence, Nahata had been allocated fixed-line telephone services licence for Punjab circle during the late Pramod Mahajan’s regime at the ministry.

Meanwhile, Videocon Telecommunications, which has a licence for 22 circles, has already launched its mobile services in Tamil Nadu, Gujarat and Mumbai.
Videocon is now on the lookout for a buyer to sell a minority stake in the
venture and has reportedly held discussions with Korea’s Sun Kyung (SK)
Telecom, Mukesh Ambani’s Reliance Industries, UAE’s Etisalat, Turkish telecom firm Turkcell and Norway’s Telenor but failed to clinch a deal due to differences over valuation.