some bad news came about unitech today evening.whats your view
Adding to the list of gross irregularities in the award of 2G spectrum licences, the Comptroller and Auditor General (CAG) of India has found that all the licences granted to the eight real estate companies belonging to Unitech Group were illegal.

Sources said the CAG has sent queries seeking explanation from the Department of Telecom (DoT) why existing guidelines were violated in award of licences and pointed to the regulations which called for cancellation of licences under such circumstances.

The CAG probe has also revealed that in award of 2G spectrum licences to Unitech Group of Companies, provisions of the Companies Act, which make it mandatory for any company to seek the Government’s permission before amending its Memorandum and Articles of Association, were also violated.

According to CAG’s findings, the licences issued to Unitech Group were illegal because their Memorandum and Articles of Association authorised them to operate only in real estate sector at the time of filing application for telecom licences on September 24, 2007, and even when they submitted fee for 2G spectrum licences on January 10, 2008. The Registrar of Companies approved all these companies to operate in telecom sector only in May 2008, nine months after they started operating “illegally” in the telecom sector.

The CAG also found these companies violated the stipulated “net worth” and paid-up capital conditions prescribed by the DoT for telecom licences. Similar violations were also found in grant of telecom licences to another Delhi-based small real estate firm —Allianz Infratech Private Limited.

The CAG’s findings (draft report) addressed to DoT Secretary pointed out that the para number 5.G of the Guidelines for Unified Access Service Licence has been totally violated, which could lead to immediate termination of these “illegal licences”.

“The company shall acknowledge compliance with the licence agreement as a part of Memorandum of Association of the Company. Any violation of the licence agreements shall automatically lead to the company being unable to carry on its business in this regard. The duty to comply with the licence agreement shall also be made a part of Articles of Association,” said the CAG’s explanation-seeking note.

“In case of not adhering to licence conditions envisaged in para 5.G, the licence(s) granted to the company shall be deemed cancelled and the licensor shall have the right to encash the performance/financial bank guarantee(s) and the licensor shall not be liable for loss of any kind,” added the CAG.

The Pioneer has learnt that the CBI investigators have also unearthed these violations. “The raids at the offices of these companies and DoT in October 2009 have provided us documentary evidence to establish these violations.

We also have evidence to prove that that these companies violated the mandatory paid-up capital norms for being eligible to apply for telecom licence,” a senior CBI official said.

The real estate major, Unitech, applied for telecom licences through eight of its group companies, namely, Adonis Projects, Aska Projects, Azare Properties, Hudson Properties, Nahan Properties, Unitech Builders and Estates, Unitech Infrastructure, Volga Properties and bagged pan-Indian licence at a throwaway rate of `1,651 crore. These companies later added Telecom to their names in May 2008 and then changed the name to Unitech Wireless (East, West, South, North Mumbai, Delhi, Kolkata and Tamil Nadu) in the last week of May 2008.

Controversies started when they sold their 67 per cent shares to Norwegian company Telenor at a whopping price of `6,200 crore in September 2008, making nearly `4,500 crore within months.

At one point of time, the Home Ministry objected to the takeover by Telenor as it is a major operator in Pakistan and Bangladesh. However, in October 2009, the Ministry approved the takeover deal just a week before the Central Vigilance Commissioner ordered the CBI to investigate the criminal conspiracy in allotment of 2G spectrum. All these licences were currently operating under the Uninor banner.

Hello CB SIR,

I short BANKNIFTY 125 @12143 and its 12251 can you please advise me what to do...

Regards,
Kuldeep

HI CB,
I have taken NIFTY 6000 call and RIL 1050 call. what is the target of the same for tomorrow. Can i buy Tatamotors call tomorrow? what is the target of m&m for one or two week target??

Hai CB!
Any chances FCS Softwares within two days to touch atleast Rs.3.10 level.Please suggest.

Hai CB!
If any chances Vision Corporation to touch Rs.4.75 level in coming days.Please suggest.