India telecoms executive Shahid Balwa in court

Image caption,
Former Telecommunications Minister A Raja was arrested last week

The first company executive arrested over India's biggest corruption inquiry, the so-called 2G scandal, has appeared in court in Mumbai.

Shahid Balwa, who floated Swan Telecom, a firm allegedly favoured during the allocation of mobile phone licences, was remanded in custody for two days.

Former federal Telecommunications Minister A Raja and two senior bureaucrats were arrested last week.

They deny underselling phone licences to the tune of nearly $40bn (£25bn).

Investigators have been trying to establish whether anyone received kickbacks from the deals.

Mr Balwa was arrested on Tuesday night by the Central Bureau of Investigation.

Swan Telecom has since been renamed Etisalat DB and is about 45% owned by UAE-based Etisalat. Mr Balwa is vice-chairman of Etisalat DB.

The 2G spectrum scandal has damaged the Congress party-led government's reputation.

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