2G scam: SC 'astonished' banks gave huge loans to licencees

The Supreme Court was "astonished" today to know that public sector banks provided loans of nearly Rs 10,000 crore to 2G spectrum licencees, which included some real estate firms, on the basis of the hypothecation of their licences.

"If it is true, it is astonishing. It goes far beyond what you are advancing," a Bench comprising Justices G S Singhvi and A K Ganguly observed when advocate Prashant Bhushan, appearing for the NGO, Centre for Public Interest Litigation (CPIL), was making his submission.



Bhushan was quoting some reports in which it was stated that PSU banks provided loans to about four licencees on the basis of the hypothecation of the 2G licences and the State Bank of India granted loan to the tune of Rs 2,500 crore to the real estate major Unitech Ltd.

"This is an indication that Rs 2,500 crore amount is given. It appears to be very substantial on the basis of hypothecation of licence only," the Bench said.