SC Order Puts Aircel-RCom Deal on Hold

Bench said other averments made by Swamy will be dealt with at a later stage

Malaysian business tycoon T Ananda Krishnan and other foreigners accused in the Aircel-Maxis deal, who have been evading court summons and warrants, on Friday faced the heat of the Supreme Court, which restrained his Maxis Group from “selling or trading” the licences of 2G spectrum.

The court said it “cannot tolerate a person using India’s national resources and evading the law”.

Krishnan and former Telecom Minister Dayanidhi Maran, his brother Kalanithi Maran and five others were charge-sheeted by the Central Bureau of Investigation (CBI) in a probe related to the money trail of around Rs 600 crore allegedly used as bribe in the Aircel-Maxis deal.

The Maran brothers have been accused of pressuring and coercing Chennai-based telecom promoter C Sivasankaran, who got 2G licences in 2006, to sell his stakes in Aircel and two subsidiary firms to Malaysian firm Maxis Group.

“We cannot tolerate a person using national resources such as spectrum (of India) and not honouring the court notice. You (Krishnan) cannot evade the process of law. You must come here from Malaysia and face the law, if you want to use the spectrum,” a Bench headed by Chief Justice J S Khehar said.

The apex court also stayed the “selling and trading in the 2G spectrum” under its consideration, which was originally granted to Aircel in 2006 and said that failure of Krishnan and the other foreign accused to submit before a court of law here would entail passing of the proposed order of restraining the earning of any revenue by using the 2G spectrum licences.

The Bench, also comprising Justices N V Ramana and D Y Chandrachud, asked Krishnan, Malaysian national Augustus Ralph Marshall and two accused companies - Malaysia’s Maxis Communication Berhad and Astro All Asia Networks Plc - to put in their appearance before the apex court within two weeks. Irked over the non-execution of summons and warrants against the Malaysian businessman and his firms, the apex court said it proposes to restrain the earning of any revenue by the company from 2G spectrum licences.

“It is imperative to ensure, in our considered view, that the process of law should not be permitted to be frustrated by non-service of summons on the accused. In order to enforce the presence of accused Augustus Ralph Marshall, Ananda Krishnan, Astro All Asia Networks and Maxis Communications Berhad, Malaysia, we propose to restrain, earning of any revenue, by using the 2G spectrum licences, which were originally granted to Aircel Telecommunications,” the Bench said. The apex court further said that the instant order is to bring to the notice of the accused the proposed action that is likely to be taken.

The Bench asked the telecom ministry to devise ways and means to avoid any adverse consequences following the court’s order to millions of Aircel subscribers by provisionally transferring them to some other service provider, in case the necessity to pass the proposed order arises. It directed the Centre to publish its instant order in two leading newspapers in Malaysia and said that after the proposed order is passed, it would not be open to any of the accused to raise the objection of monetary losses.

The Bench posted the matter for further hearing on February 3 and said other averments made by Bharatiya Janata Party leader Subramanian Swamy will be dealt with at a later stage. Swamy, in his petition, has alleged that Foreign Investment Promotion Board clearances to Aircel-Maxis deal were granted illegally.

Special 2G prosecutor Anand Grover said that hearing on framing of charges in the trial court in Aircel-Maxis deal case is scheduled on January 9. During the hearing, advocate Prashant Bhushan alleged that Maxis Group owner Ananda Krishnan was attempting to exit India after being charge sheeted by CBI for fraudulently ‘force buying’ Aircel for using the spectrum. “We cannot say today that it was a fraud, as there are all allegations at present but the process of law should be honoured,” the apex court said and asked amicus curiae and senior advocate K K Venugopal to suggest ways on what could be done if parties refused to appear before the court.

On October 29, 2014, the special 2G court, for the first time, had summoned former Telecom Minister Dayanidhi Maran, his brother Kalanithi and six others, including Malaysian business Krishnan after taking cognisance of the CBI charge sheet. After two summons were not executed, the special 2G court had, on September 24, last year issued open-ended non-bailable warrants against Krishnan and Marshall.

Reference - http://www.business-standard.com/article/companies/sc-order-puts-aircel-rcom-deal-on-hold-117010700042_1.html