Unitech crashes 17% on reports of 2G conspiracy

Real estate firm Unitech plunged more than 17 percent in early trade on Tuesday as Network 18 has learnt from sources that the CBI suspects its own prosecutor of aiding Unitech MD Sanjay Chandra, one of the accused in the 2G case.

A CBI preliminary enquiry report says an investigation is on and lead 2G prosecutor AK Singh has been removed from the case.

CNN IBN has accessed a preliminary enquiry (PE) registered by the CBI on February 6 which states that AK Singh who represented the CBI in the 2G case has allegedly colluded with the accused Sanjay Chandra, MD of Unitech.

The CBI preliminary enquiry says AK Singh shared the strategy of the CBI prosecution and even advised the accused Sanjay Chandra how to defend himself in the case.

Meanwhile, Unitech, in a statement, has denied that managing director Sanjay Chandra had any involvement in the alleged backroom negotiations.

"He (Sanjay Chandra) wishes to make it absolutely clear that he has never met the prosecutor in the 2G case outside of court or had any phone conversation with him. He denies the suggestion that his voice is on any alleged recording. It appears a fabricated voice recording has been sent anonymously to the CBI. Any suggestion that Sanjay Chandra is linked with this recording is nothing, but an attempt to malign him and prejudice his defence in the 2G case. It is re-iterated that the recording is a fabrication."

The statement also adds that Chandra has joined the CBI's enquiries, and is co-operating with the CBI probe.

At 09:34 hours IST, shares crashed 16 percent to Rs 29.35 amid high volumes on Bombay Stock Exchange.

Disclaimer: Network18 cannot independently verify the authenticity of the conversation on the audio tape.