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`
India's biggest real estate developerbased in Mumbai
` DB Realty Limited is a real estate industry leader that
builds residential, commercial and gated community
developments.
` Company's existing product portfolio ranges from
upscale buildings, lavish villas and some of the most
elite malls
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` Incorporated as a public limited company on January
8, 2007
` Received a fresh certificate of incorporation on July
9, 2007` was converted to a public company and the name was
change to D B Realty Limited
` Changes in the Registered Office
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` Entrepreneurbased in Mumbai, Maharashtra, India
` One of the Promoters of Mumbai-based DB Group
which runs DB Realty India's 3rd largest realtor, DBHospitality and Swan Telecom (now Etisalat DB
Telecom).
` Involved in 2g scam
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` MD DB Realty is an Indian billionaire real-estate
developer and co-founder ofDB Realty.
` Been in the real estate business for the last 25 yearsand is a mentor to the Dynamix Balwa Group.
` Under his leadership, DB Realty was listed on both
the National StockExchange and Bombay Stock
Exchange in 2010.
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MR. A RAJA MUTHUVEL KARUNANIDHI
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` 2G signifies second-generation wireless digital
technology
` 2G networks saw their first commercial light of day
on the GSM standard` 2G on GSM standards first used in commercial
practice in 1991 by Radiolinja, which was a Finnish
GSM operator founded on Sept. 19, 1988
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` CHEAP TELECOM LICENSES
` NO PROCEDURES FOLLOWED
` FAVOURITISM, CORPORATES ENCASH PREMIUM
` OTHERS IN THE NET
` THE ROLE OF KALAIGNAR TV
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NAME CHARGES
1.S.Behura
Former telecom secretary who served in the
DOT at the time of the 2G allocation.
2.Pradip Baijal A bureaucrat who is alleged to have
implemented policies that favored certain
Telecom companies when he was headingthe TRAI.
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Name Allegation
1.Nira Radia A former airline entrepreneur turned corporate
lobbyist whose conversations with politicians &
corporate entities were recorded by govt
authorities & leaked .2.Barkha Dutta AnNDTVjournalist alleged to have lobbied for
A. Raja's appointment as minister.
3.Vir Sangavi A Hindustan Times editor alleged to have edited
articles to reduce blame in the Nira Radia tapes.
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` Unitech Group
` Swan Telecom:
` Videocon Telecommunications Limited
` Reliance Communications` Sistema Shyam Mobile (MTS) Sistema Mobile
Russia
` Tata Communications
` Dish net Wireless
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` DB's name first cropped up in the 2G spectrum
allocation scam
` flouted norms to allocate 2G licences to companies like
Swan Telecom (now Etisalat DB) and Unitech Wireless` DB's promoters also diversified into the telecom sector
and bagged 2G licences, for Rs 1,537 crore (Rs billion),
to operate in 15 circles.
` They sold 45 per cent stake in telecom venture SwanTelecom to UAE-based Etisalat for nearly Rs 4,200
crore
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` Swan had given false certificates and its application did
not conform with requirements for UASL
` CAG said Swan was also given spectrum in Punjab
circle, even as it was fourth in the priority list.` The promoters later sold 45 per cent stake in Swan for
Rs 4,200 crore (Rs 42 billion) while the company had
acquired licences for Rs 1,537 crore
` email interview with Business Standard earlier, DB'sBalwa had denied that DB Realty had any direct or
indirect shareholding in Etisalat DB.
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` The promoters and Etisalat DB have shared all
data/information and documents relating to the grant of
licences with the government agencies
` When investigating agencies were reported to be probing the
Rs 214-crore (Rs 2.14 billion) loan given by Dynamix Realty
` A subsidiary of DB Realty, to Kalaignar TV, which had Tamil
Nadu Chief Minister M Karunanidhi's wife M K Dayalu anddaughter Kanimozhi as major investors, in a three-step deal
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` The reports said that Dynamix Realty, a firm owned 99 per
cent by DB Realty, transferred Rs 209 crore (Rs 2.09 billion)
in unsecured loans to Kusegaon Realty Pvt Ltd.
` Then, Kusegaon Realty invested Rs 206 crore (Rs 2.06 billion)
in Cineyug Films. Finally, Cineyug gave Rs 214.8 crore (Rs
2.148 billion) as advances to Kalaignar TV in 2009-10.
` DB Realty has denied giving any loans to KTV and havingany association with Cineyug or KTV,
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` After the arrest of Balwa , DB Realty issued a
statement saying: "These developments will not affect
the functioning of DB Realty in any manner
whatsoever.
` DB Realty will continue its business in the normal
course along with the top-tier team, under the guidance
of the company's board.
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` Three different methods to assess the presumptive loss to the
exchequer resulting from not auctioning 2g spectrum
` The first method was based on the fact that S Tel
` The second method was based on the price recovered by the
3G auction in 2010
` The third method was based on the fact that some of the
licensees received FDI in the form of equity, shortly after the
spectrum allocation.
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` Post 2G, DB Realty finds its projects scrapped,
delayed
` 2G scam: ED likely to attach DB Realty's
assets
` 2G scam: DB Realty appoints Shahid Balwa'sfather on board
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` In January 2008, Department of Telecommunications
issued 120 new licenses for unified access services
` Were issued at price which had been discovered in2001.
` Issuance of 120 licenses in just one day and at a price
discovered in 2001 has drawn the attention of Media,
Parliament and informed members
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` The claim in each such reference is that ineligible applicants
seem to have been granted licenses and at a price which
appeared far below what has been perceived to be the
appropriate market price in 2008.
` It was in this context that this department felt that there was a
sufficient justification to review the entire process of issuance
of licenses, award of spectrum and the implementation of the
UAS regime
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` Gaps in policy implementation
` Telecom commission was not consulted
` Views and concerns of ministry of finance overruled
` Advise of ministry of law and justice were ignored
` Honorable prime ministers suggestions were not followed
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` Arbitrary changes by DoT in the cutoff date
` Issue of license to ineligible applicants
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` Greed of a single person overpowering rational
functioning of entire department.
` Vested interests of various politicians, corporate and
media.` Loop Holes and Irregularities in Existing Policies.
` Strong Nexus between the Media and Corporate.
` Ignorance Shown by the Law Ministry, the Finance
Ministry and even the Prime Minister.
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` Major concern for telecom sector which was beginning
to get competitive in the Indian economy.
` Many leading companies were a part of the 2G
spectrum scam of which were certain reputed names` The scam has badly bruised the image of Indian
telecom and the government in international investor
circles
` Whenever a scam of this sort happens, the entireindustry is pulled down on the stock markets and firms
go down with the slump.
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` The first casualty in Stock Markets once Raja was
arrested was DB Realty.
` Sun TV had its shares fall by 10%.Sun TV COO
refused the allegations.` Swan Telecom Chief Balwa was arrested on Feb 8 and
this led to rumors of links with Anil Ambani's Reliance
ADAG and it led to 20% fall of his stocks
` Spice jets Stocks went down after reports ofinvestigation on Maran's recent takeover of Spice jet.
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