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2G scam: ED slaps Rs 7,100 crore fine on Etisalat DB

NEW DELHI: The Enforcement Directorate on Friday slapped a Rs 7,100 crore showcause notice on Etisalat DB for allegedly violating Foreign Exchange Management Act (FEMA) in what marks the second prong of the multi-agency investigation into the 2G scam. The notice, based on details of the investigation into alleged violations of law by Etisalat DB, comes with the warning that the penalty will be increased three times if the company fails to respond to the showcause within a month. Listing the alleged transgressions, EDs investigating officer has said that Etisalat-Dubai and Genex Exim acquired equity in Shahid Balwa-promoted Swan Telecom in contravention of rules. The ED report said shares were issued at very high prices just to bypass the Foreign Investment Promotion Board (FIPB). As the CBI is moving ahead to prepare the third chargesheet in the spectrum scam case, the EDs investigations into the massive fraud have also gathered pace. This is the sixth showcause the ED has issued in the 2G scam. Four more are likely in what represents a parallel track of the probe.

                                                                                                               
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