Shares in Indian operators Unitech Wireless and Reliance Communications dropped in early trading this morning after they were both formally charged over the weekend for their role in India’s 2G licensing scandal. According to Bloomberg, shares in Unitech plunged as much as 16 percent, the most in more than four months, while Reliance had its steepest decline in three weeks. Another operator – Swan Telecom – was also charged, along with several individuals, including India’s former telecoms minister Andimuthu Raja (who resigned over the affair last November), his personal secretary R.K. Chandolia, former telecoms department secretary Siddhartha Behura, and former DB Realty MD (and Swan Telecom founder) Shahid Balwa. Raja and the other former government officials were charged under the Prevention of Corruption Act. The company officials and companies were charged with “lesser offenses” under statutes relating to conspiracy, cheating and forgery.

Bloomberg notes that Raja (pictured) resigned in November, two days before the nation’s chief auditor published a report claiming the 2G airwaves in question were sold-off in 2008 for an “unbelievably low” US$2.7 billion, costing the country as much as INR1.4 trillion (US$31 billion) in lost revenue. Federal investigators allege that the minister conspired to benefit companies including Swan Telecom (now Etisalat DB) and Unitech (now Uninor) by violating guidelines in the licence sale. Reliance is under investigation due to its earlier links with Swan Telecom, though it insists it “held only 9.9 percent of the equity share capital of Swan Telecom at the time of filing the relevant license application in March 2007,” below the 10 percent legal limit an operator is allowed to own in a rival. The next hearing in the case is scheduled 13 April.