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: In the short-term, I don¶t see any major impact on continuity. There is pressure on these
companies and they are aware of that pressure about the legality of the licenses that were issued
to them. There would be concerns but as far as continuing with what they are doing, as long as
the licenses are valid I don¶t see any serious problem.
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: It basically appears to be accelerated momentum with regard to how the government and
the Supreme Court and CBI are all following this case. While one might have thought this case
may carry on for a little longer it seems to be well on course to come to a conclusion this year.
The companies which are being investigated will face a bit of pressure. We have to see the
actual outcome of the regulation, what happens in terms of whether a penalty is imposed or
whether spectrum charges are put those are the bigger issues.
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: Those who have to pay the penalty will face penalty that is the only ramification whether it
comes as reason one or reason two or spectrum charges.
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Hirani: The bail application rejection seems to be a little harsh. Most of the companies that are
involved in this scam and including the senior executives, they have been cooperating and
coming up to the CBI and answering most of the questions and queries that have been put out.
Therefore, putting them under judicial custody whilst investigations are in progress prima facie
seems to be a little harsh.
The ramifications for the sector are quite significant because the message this sends out is that
you could be an executive and a professional in any leading telecom company and if there is any
allegation made either by the government or anybody else at a future point of time that there
were some irregularities in the sector or in the award of any license then you would be put to test
and you could be put into a judicial custody kind of a situation.
It rings alarm bells for the sector, for the professionals working in this sector and also what we
are seeing is the reopening of a number of other much prior deals like the Tata-VSNL deal from
2002 and similar other deals, so if there are again allegations of irregularities whilst inquiries are
being conducted then there is a lot of fear for the executives who are operating in this sector.
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': There is 50-50 chance; a better judicial sense prevails in the higher court. I am sure that
the Delhi High Court may not be the last verdict in the matter because be it the government or be
it the companies, there will be an appeal that will probably go to the Supreme Court (SC). The
law needs to be looked at carefully and unnecessary hardship should be caused only if the public
prosecutor can prove. There is an obfuscation of evidence or if there is a restoration of facts or
some documents are going to be tampered with and having these people outside can be harmful
to the judicial process, should this kind of an application be fizzle out. Hence, one does hope that
the appellate courts look at the merit and see if indeed there will be any injustice done and then
pass the appropriate order.
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' I don¶t have an answer as to what the eventual end result might be in terms of this
investigation and where it might go. However, the short issue that you mentioned about witness
tampering and so on can happen even as people are behind bars and we have seen that in other
cases in the past in oth er types of inquiries. I don¶t think necessarily that sole point should be
used as a basis for rejecting a bail when overall, there is cooperation and investigation
progressing.
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+: I think this has come as a huge signal. This is first time in recent memory that we have
seen cabinet minister and such senior level people at the same time going to jail. This definitely
has both signaling effects in terms of there is a positive aspect and a negative aspect.
If the government is taking corruption a lot more seriously it is a positive signal and the negative
of course is that there is a lot more that does not meet the eyes, which is still rotten inside the
Indian corporate systems.
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+: We have not seen fast track in India. Bhopal is still lin gering in court and Satyam is still
nowhere near conclusion whereas the US court has already gone far ahead. I could be proven
wrong but nothing in India judicial system concludes quickly.
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+: High courts are generous with bails but this is a fairly case in terms of such high profile
people. I would say its 50-50 chance and of course everything is been done at a stage where
there is no proof yet, this kind of evidence is still to be brought in trial so this is only at a custodial
stage.

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+: If these kinds of charges do get proved it will play in the grey areas. It is a kind of fairly
straight forward issue of corruption and of areas which are fairly black and white. This will
hopefully send a signal to people who directly breaking law. At the end, it will hopefully send a
strong signal that you can¶t take the law that easy even if you are pretty senior.
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0 : This is going to have a cautious and negative ramification on many other stocks as well.
People will definitely be very cautious. The market will not take the things for granted that things
can go on and one can take the share price to continue to rise and remain settled at some level
after having seen corrections. This is going to be quite putting the traders as well as the investors
on the cautious mode for all these stocks.
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0 : One cannot really take a call on the sector per se but I fear that it should not get spilled
over to the other executives or the other companies because you cannot just say that there is an
end to the 2G scam at this point. There are other companies also being talked. When we have
seen these five people having implicated in the second stage, why this cannot get extended in
the third stage as well, where the things will be more serious and I apprehend that all these
things can happen once the state elections get over. If that happens then I think that would be
the next blow to corporate India and to the telecom sector.
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0 : The correction has already taken place. If you talk of these three stocks, if I just confine
to RComm, Unitech and DB Realty, we just can¶t say that with this news breaking out, we have
not seen intraday correction or may be a fall of 2-5% but if you take a fall in the stock prices of all
these three stocks in last 6 months obviously you will see them getting eroded by anywhere
between 30-70%.
People have started offloading. Even the long term investors those who have been taking a
fundamental call have started exiting and that¶s the reason we have been seeing this kind of
valuations. Unitech, DB realty has no connection as such if you prima facie with the telecom
scam, so all these things will be having some value left. Whatever value which we have been
seeing in these stocks is in fact way bellow their fundamental business or the fundamental
valuations of the existing business, right now they have. It is more with the fear of these legal
effects which we have been seeing in the share price of these companies.
0 2G scam , bail plea, Sanjay Chandra, MD, Unitech Ltd and Unitech Wireless, Vinod Goenka, MD, DB Realty
and Swan Telecom (now Etisalat), Gautam Doshi, Group MD, Reliance Anil Dhirubhai Ambani Group (ADAG) and Hari
Nair and Surendra Pipara, Senior Vice Presidents, ADAG, Mahesh Uppal, Comfirst , GV Giri, IIFL , Akhil
Hirani, Majmudar & Co, Sandeep Parekh,FinSec Law Advisors.SP Tulisan