New Delhi, Feb 10 (IBNS) The Central Bureau of Investigation (CBI), which is probing the 2G spectrum allocation scam, is expected to file its status report before the Supreme Court on Thursday.

The country's highest investigating agency in September 2010 had told the apex court that it would complete the investigation by March 31, 2011. 

 

The SC, which is monitoring all aspects of the 2G scam probe, directed the CBI during the last hearing that the agency should fearlessly pursue the investigation.

 

The SC's directive came after Telecom Minister Kapil Sibal had disputed the Comptroller and Auditor General's estimation of loss from the sale of 2G spectrum allocations. 

 

The CBI has arrested former Telecom Minister A Raja and his two aides.

 

Raja, arrested arrested eight days ago in connection with the scam, is believed to be the mastermind in the alleged scam.

 

Shahid Balwa, the promoter of DB Realty, was also arrested from Mumbai on Tuesday in connection with the scam. 

 

DB Realty had floated Swan Telecom, which Raja allegedly favoured in spectrum allocation.

  

The CBI suspects that in 2008, when the government was allocating 2G spectrum for mobile phone networks, Raja might have twisted the rules to benefit a few companies - especially Swan and Unitech.

 

Swan and Unitech sold equity to foreign companies much before they began the rollout of their services.

 

The giant profits they made seemed to underscore the point that spectrum had been sold far too cheaply by the government. 

 

Swan paid Rs. 1537 crore and sold 45 per cent stake to UAE-based Etisalat for a profit of Rs. 4, 730 crore.

 

The DB group's telecom arm, earlier known as Swan Telecom, is now known as Etisalat-DB.