CBI may hound banks funding tainted telcos

Probe into the 2G spectrum scam has revealed that public sector banks granted massive loans to “tainted” telecom companies even after the central vigilance commission (CVC) and CBI initiated inquiries against them.

CVC started probing the 2G spectrum scandal in May 2009, while CBI registered a formal case in October 2009. This was the period when the banks issued the loans.

CBI soon may soon launch a separate probe to ascertain the banks’ role in the scam.

“We shall investigate the allegation of grant of huge loans by public sector and other banks to some of the companies that succeeded in obtaining [2G] licences in 2008,” the agency said.

“CBI shall also find out whether officers of department of telecommunication [DoT] were signatories to loan agreements executed by private companies and if so, with whose permission.”
Unitech Telecom and STel reportedly received over Rs11,500 crore from State Bank of India (SBI) and other banks.

CBI has learnt that SBI disbursed around Rs8,000 crore to Unitech in 2009 and 2010 without guarantee, just on the basis of licence papers issued by DoT.

Some of the banks that granted loans to Unitech are South Indian Bank, Allahabad Bank, Corporation Bank, Canara Bank, Punjab National Bank, Oriental Bank and Central Bank of India.

The illegality of the licences issued to Unitech and STel had been mentioned by the comptroller and auditor general in its much-publicised report.