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Essar Group used Loop Telecom to acquire 2G licences: CBI

Last Updated 01 April 2015, 13:32 IST
Loop Telecom Ltd (LTL) was "used" by Essar Group of companies to acquire 2G spectrum licences by "circumventing" the procedures, the CBI today argued before a special court.

Advancing the final arguments in a case arising out of its probe into the 2G scam, the agency said the evidence brought on record showed that Loop Telecom was "controlled" by the Essar Group of companies.

Essar Group promoters Ravi Ruia and Anshuman Ruia, Loop Telecom promoters, Kiran Khaitan, her husband I P Khaitan and Essar Group Director (Strategy and Planning) Vikash Saraf are facing trial in the case, along with three telecom firms -- LTL, Loop Mobile India Ltd and Essar Tele Holding Ltd (ETHL).

The five individual accused, who are out on bail, have all denied the charges levelled by CBI.Special Public Prosecutor Anand Grover argued that Essar Group had violated the clause 8 of Unified Access Services Licences (UASL) guidelines to secure the radiowaves.

"Loop (LTL) was used by Essar to acquire licences by circumventing the procedures," Grover told Special CBI Judge O P Saini, adding that "according to us, at this stage, there was a violation of clause 8 of UASL."

As per clause 8 of the UASL guidelines, "No single company or legal person, either directly or through its associates, shall have 10 per cent or more equity holding in more than one licensee company in the same service area for same service."

Grover argued that Essar Group had created a structure of companies to show on paper that LTL was not controlled by it, whereas Loop Telecom Ltd was "all controlled" by Essar Group of companies.He said that evidence has come on record before the court and relevant documents have been proved during the trial.

CBI's arguments remained inconclusive today and would continue on April 6."Final arguments for the prosecution heard for sometime and thereafter, deferred. Put up the matter for further final arguments for prosecution on April 6, 2015, as prayed," the court said.
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(Published 01 April 2015, 13:30 IST)

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