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Saturday, 26 November 2011

DB Realty, Unitech, RCom shares jump after bail for top executives in 2G case

The Supreme Court today granted bail to five corporates arrested in the 2G scam. Those granted bails include Sanjay Chandra of Unitech, Vinod Goenka of Swan Telecom and three officials of Anil Ambani's ADAG-Group.

The Supreme Court's decision acted as sentiment booster for the companies these officials represented. The gains in stocks of these companies came against a sharp selloff in broader markets. Three telecom firms - Reliance Telecom Ltd, Swan Telecom and Unitech (Tamil Nadu) Wireless Ltd - have been named accused in the case.

At 1415 hours, stocks of DB Realty traded 18 per cent higher on the Bombay Stock Exchange. DB Realty stocks have plunged 45 per cent since the arrest of Mr Goenka who is the MD of DB Realty and director of Swan Telecom.

Unitech was trading with 5 per cent gains. Unitech stocks have fallen nearly 50 per cent since the arrest of Mr Chandra who headed Unitech Wireless when he was arrested in the scam seven months ago.

Reliance Communications was trading 2 per cent higher on the BSE. Three officials of Reliance ADAG Group - Gautam Doshi, Surendra Pipara and Hari Nair - will also walk out of Tihar jail shorty. The stock has fallen nearly 34 per cent since the arrest of these executives.

All five corporates have been asked to furnish a surety bond of Rs 5 lakh each. The Central Bureau of Investigation can move the Supreme Court if it feels the bail is misused.

The five accused had moved the apex court challenging the Delhi High Court and trial court orders turning down their bail pleas. The accused, who have been charged under various offences under the Indian Penal Code and Prevention of Corruption Act, contended that they should be granted bail as the charges have already been framed and there is no chance of them tampering with the evidence.

Other accused in the case include former Telecom Minister A Raja, DMK MP Kanimozhi, former Telecom Secretary Siddhartha Behura and Raja's former private secretary R K Chandolia.

Swan Telecom promoter Shahid Usman Balwa, his cousin Asif Balwa and their colleague Rajeev Agarwal have also been booked in the case.

All the accused have pleaded that they have not done anything wrong and refuted the charge of drawing illegal benefits in allocation of 2G spectrum.

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