DB Realty founder Balwa gets bail in 2G case

Central Bureau of Investigation (CBI) officials escort Shahid Balwa (C, in black) at the CBI headquarters in New Delhi February 9, 2011.

NEW DELHI (Reuters) - A Central Bureau of Investigation special court on Tuesday granted bail to the founder of DB Realty, Shahid Balwa, who was charged in a telecoms licensing scandal that rocked the government and businesses in Asia's third-largest economy.

"He's been granted bail on the conditions that he must deposit his passport, come to court daily and submit two 5 lakh (500,000) rupee security bonds," Balwa's lawyer Vijay Aggarwal told Reuters on Tuesday.

Shares of DB Realty rose almost 14 percent following the news. They surged 8 percent to 76.80 rupees.

Last week, the Supreme Court had granted bail to five company executives, raising hopes that others including some politicians may be freed.

Balwa's release comes a day after Kanimozhi, the lawmaker daughter of DMK party chief M. Karunanidhi, and four other company executives -- also charged in the telecoms scandal -- received bail after being jailed for more than six months.

Balwa was accused, along with others, of rigging a 2007/08 grant of lucrative telecoms licences, causing an estimated loss of as much as $39 billion to the state coffers, a sum equivalent to the country's defence budget.

(Reporting by Annie Banerji; editing by Malini Menon)