Investigations into India’s 2008 2G licensing ‘scandal’ have claimed another scalp with the resignation of Shahid Balwa (pictured), the head of DB Realty and one of India’s most high-profile entrepreneurs. Balwa is also founder of Swan Telecom, one of the operators accused of acquiring the licences on the cheap and then being acquired by an international operator. Swan acquired 2G licences in 13 service areas for just INR15.4 billion (US$338 million) prior to selling a 45 percent stake to Etisalat for INR42 billion. The company was later renamed Etisalat DB with Balwa becoming a vice-president at the new firm. India’s Central Bureau of Investigation (CBI) arrested and questioned Balwa last month, though DB Realty claimed at the time that he had not done “anything inappropriate or illegal.” However, the Financial Times reports that DB Realty officially accepted Balwa’s resignation yesterday, a move that sent its shares falling by as much as 15 percent. It is unknown if he will retain his role at Etisalat DB. At 36, Balwa is India’s youngest billionaire.

The CBI’s apparent victory in removing Balwa has heightened speculation that investigators will target Uninor next. Formerly known as Unitech Wireless, the operator also acquired licences then sold a stake to a foreign investor – Norway’s Telenor. According to a Financial Times report last month, Telenor CEO Jon Fredrik Baksaas said the firm could be forced to reconsider its presence in India if the government revises the terms of its spectrum licence. “If there are changes to that agreement then of course we may be forced to rethink,” he said.