Essar controlled Loop telecom, CBI tells 2G court

Essar controlled Loop telecom, CBI tells 2G court

The deployment of the Essar Group officials to control Loop Telecom Limited was in violation of the Department of Telecom rules framed for the grant of 2G spectrum licences, the Central Bureau of Investigation (CBI) told a special court here on Wednesday.

“In this case, every person who was exercising control or was having significant influence was a person from Essar group of companies, which was in violation of clause 8 of UASL guidelines,” Special Public Prosecutor Anand Grover said.

The UASL guidelines clearly stipulate that no single company or legal person, either directly or through associates, shall have 10 per cent or more equity holding in more than one licensee company in the same service area for same service. “The people may have nominal role in a firm but the question is who exercises the direct control or who have significant influence in the policy-making of a company,” Grover said.

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