Essar head quizzed by CBI in 2G scam | delhi | Hindustan Times
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Essar head quizzed by CBI in 2G scam

delhi Updated: May 12, 2011 23:32 IST
HT Correspondent

The CBI on Thursday questioned Essar Group CEO Prashant Ruia for three hours in connection with its probe into the 2G scam. Ruia was quizzed about his company's link with Loop Telecom Private Limited which received the unified access service licence (UAS) for 21 circles in January 10, 2008.

Loop Telecom Private Limited was then known as Shipping Stop Dot Com (India). “We continue to cooperate with the investigation as we have done in the past. Essar has always been in compliance with all the regulations and laws of the land,” an Essar spokesperson.

“We have evidence to chargesheet Loop in the 2G scam as it was ineligible for grant of the UAS licence. We believe that Loop is an associate company of Essar,” said a senior CBI official.

CBI spokesperson Dharini Mishra said, “Ruia was questioned in connection with alleged violation of clause 8 of the UAS licence guideline while obtaining 2G licnece in 2008.

According a CBI official, clause 8 states that existing telecom operators should not be given fresh licences and Loop was granted licence despite being an “associate company” of Essar which had a significant stake in Vodafone.