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News Essar was controlling Loop Telecom Ltd, facts misrepresented before DoT: CBI

CBI today told a special court that Essar Group was "effectively controlling" Loop Telecom Limited (LTL) which had "fraudulently and dishonestly" misrepresented facts before Department of Telecommunications (DoT) to acquire 2G spectrum licences.

The agency argued that the entire funding in this case was by Essar Group of companies and restructuring of firms was done to conceal the fact that the Group was controlling LTL.

"There are series of transactions which shows that before, after and during the conspiracy, Loop Telecom was controlled by Essar Tele Holding Ltd (ETHL). They (LTL) fraudulently and dishonestly misrepresented the fact before DoT to get the 2G spectrum licences," Grover told Special CBI Judge O P Saini.

He also said that clause 8 of the Unified Access Services Licences (UASL) guidelines was also violated by accused firm.

As per clause 8 of 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."

"From December 2007 to January 2008, clause 8 certificate was repeatedly submitted by LTL in the DoT... Restructuring of companies was done to conceal the fact that Essar Group was controlling LTL," Grover said.

Essar was controlling Loop Telecom Ltd, facts misrepresented before DoT: CBI - The Economic Times
Looks like investigation will continue for one more decade.


EntMnt Staff
This is open secret and the investigators took a decade to identify. Pathetic investigation. Looks like they want to slow down the investigation
what else can we expect, if they want to action against their enemy then the process is expedited .