2G scam verdict: CBI special court acquits A Raja, Kanimozhi and others

India Infoline News Service | Mumbai | December 21, 2017 17:16 IST

DB realty, Unitech, Khaitan, Sun TV and ADAG stocks gain on acquittal of promoters.

A Raja
A CBI special court acquitted all accused in the 2G spectrum allocation case as the prosecution had "failed to prove charges beyond a reasonable doubt". 

Those acquitted in the 2G spectrum scam case include former telecom minister A Raja, DMK MP Kanimozhi, former telecom secretary Siddharth Behura, and A Raja's then private secretary RK Chandolia. In addition, Swan Telecom promoters Shahid Usman Balwa (DB realty) and Vinod Goenka, Unitech Ltd MD Sanjay Chandra, IP Khaitan and Kiran Khaitan (Khaitan India)) were also acquitted.

As a result of the court’s acquittal, some stocks have rallied strongly in today’s session. Unitech, DB Realty, Rcom,  Khaitan (India) and Sun TV closed higher 12%, 19.9%, 8.1%, 4% and 4.5% respectively.

The 2G scam was exposed in 2010 when the CAG Vinod Rai said that in 2007-2008, 2G licenses had been given to telecom operators at throwaway prices without a free and fair bidding process. A Raja the then telecom minister denied issuing out-of-turn licenses at below market prices. A Raja resigned in 2010 after the auditor's report and was arrested in 2011. Along with Raja, several other politicians and promoters of some of the top telecom companies were are named in the case.

***Note: This is a NSE Chart

 

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