Loop an Essar firm under corporate veil, says CBI

The CBI, in its third charge sheet in 2G spectrum case, has said Loop Telecom Ltd was an Essar Group company “under a corporate veil” and even Ministry of Corporate Affairs (MCA) and Department of Telecommunications (DoT) “chose not to investigate” and allowed it “to rest”.

The CBI, in its third charge sheet in 2G spectrum case, has said Loop Telecom Ltd was an Essar Group company “under a corporate veil” and even Ministry of Corporate Affairs (MCA) and Department of Telecommunications (DoT) “chose not to investigate” and allowed it “to rest”.

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The “vague” MCA report on the DoT's plea to probe the allegations against Loop Telecom was mentioned in the 105-page charge sheet filed before Special CBI Judge O P Saini who has fixed the case on December 21 for orders on taking cognizance against the eight accused.

The charge sheet said despite the report of a deputy director (inspection) of MCA that the Clause 8 of the Unified Access Services Licences guidelines of 2005 was violated, the ministry, “instead of conveying such a definite opinion to the DoT, chose to send a non-committal vague report” elaborating control of Essar Group over Loop Telecom.

The report had come on a complaint referred to the MCA by the DoT to probe whether Loop was a front of Essar Group.

The agency seeks prosecution of Essar group promoters Anshuman and Ravi Ruia, Loop Telecom promoters Kiran Khaitan, her husband I P Khaitan and Essar Group director Vikash Saraf.