New Delhi:
The Ministry for Corporate Affairs has clarified that it has not conducted any independent investigation to determine if Essar was a major stakeholder in Loop Telecom when the latter was given 21 telecom licenses in 2008.
In court yesterday, the Central Bureau of Investigation (CBI) slammed the Ministry of Corporate Affairs for providing contradictory information. The CBI alleges that Essar, owned by the Ruias, used Loop as a front to acquire more licenses and spectrum than legally permissible when A Raja was minister in 2008. Loop was among nine companies that were granted licenses by Mr Raja. He is now in jail.
The CBI believes that Essar changed the shareholding pattern of Loop just two days before license were allotted by Mr Raja to disguise the fact that it owned at least 10% in Loop. According to rules, no company can own more than 10% of another telecom operating in the same circle.
In May 2009, when Salman Khurshid was minister, the Ministry of Corporate Affairs said that Loop was an associate company of Essar's and should not have been eligible for licenses and spectrum. In April this year, the Ministry of Corporate Affairs said that was not the case. Murli Deora was minister at the time (he resigned this week).
The Ministry of Corporate Affairs says that its presentation of facts is based on information in the Registrar of Companies. The Ministry says the CBI did not send it a copy of the status report before submitting it in court on Wednesday.
The Ministry has also denied it had handled the Loop and Swan cases differently. Anil Ambani's Reliance Communications (RCom) has also been accused of using Swan Telecom as a front in 2008. Swan's executives are in jail; so are three of Mr Ambani's top managers.
The CBI says its scrutiny of the Loop-Essar deal will be completed by August 31, and a chargesheet will be filed after that.
In court yesterday, the Central Bureau of Investigation (CBI) slammed the Ministry of Corporate Affairs for providing contradictory information. The CBI alleges that Essar, owned by the Ruias, used Loop as a front to acquire more licenses and spectrum than legally permissible when A Raja was minister in 2008. Loop was among nine companies that were granted licenses by Mr Raja. He is now in jail.
The CBI believes that Essar changed the shareholding pattern of Loop just two days before license were allotted by Mr Raja to disguise the fact that it owned at least 10% in Loop. According to rules, no company can own more than 10% of another telecom operating in the same circle.
In May 2009, when Salman Khurshid was minister, the Ministry of Corporate Affairs said that Loop was an associate company of Essar's and should not have been eligible for licenses and spectrum. In April this year, the Ministry of Corporate Affairs said that was not the case. Murli Deora was minister at the time (he resigned this week).
The Ministry of Corporate Affairs says that its presentation of facts is based on information in the Registrar of Companies. The Ministry says the CBI did not send it a copy of the status report before submitting it in court on Wednesday.
The Ministry has also denied it had handled the Loop and Swan cases differently. Anil Ambani's Reliance Communications (RCom) has also been accused of using Swan Telecom as a front in 2008. Swan's executives are in jail; so are three of Mr Ambani's top managers.
The CBI says its scrutiny of the Loop-Essar deal will be completed by August 31, and a chargesheet will be filed after that.
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