New Delhi:
The Supreme Court has asked the CBI to respond formally to allegations that the Law Ministry is interfering with the agency's investigation against Loop and Essar. A petition filed by activist Prashant Bhushan alleges that the charges against executives of both companies were diluted because Law Minister Salman Khurshid said he does not believe they have broken any rules. The court has asked the CBI and other agencies like the Enforcement Directorate to clarify their stand within 10 days. The case will be heard next on January 20. The CBI also has to explain why it's investigation against former Telecom Minister Dayanidhi Maran is moving slowly.
Last month, the CBI accused Essar and Loop of being involved in the telecom scam that was allegedly masterminded by A Raja when he was Telecom Minister in 2008. The CBI alleges that Essar used Loop as a front to buy more licenses and acquire spectrum beyond what was legally permissible. Guidelines forbid a telecom from owning more than 10% stake in another operator that services the same area. In 2008, Essar had a 33% stake in Vodafone, and owned a substantial chunk of Loop, says the CBI.
Though the CBI named Loop and Essar in its third chargesheet in the telecom scam, it did not charge their executives, or any public servants, under the Prevention of Corruption Act. Mr Bhushan wants to know why. His petition states that the Law Ministry is influencing the probe in favour of the telecoms. Mr Bhushan told the Supreme Court that Reliance and Swan Telecom have been accused of an identical breach of rules, and executives for both were booked under the Prevention of Corruption Act.
The Law Ministry has said that in its opinion, Essar and Loop were not "altar egos" as the CBI suggests. Mr Khurshid has said that it does not appear that either company violated telecom guidelines. Mr Bhushan alleges that this public offering of opinion has weakened the CBI's case against Loop and Essar.
The Attorney General of India, GE Vahanvati, advised the CBI that the agency does have a case against the telecoms. Consequently, executives have been accused of criminal conspiracy and cheating with the department of telecommunication (DoT).The companies named in the third chargesheet are Essar Teleholdings, Loop Telecom and Loop Mobile India. The executives named are Essar's Anshuman Ruia, Ravikant Ruia and Vikas Saraf, and the promoters of Loop, Ishwari Prasad Khaitan and Kiran Khaitan.
Mr Bhushan has also alleged that the CBI is deliberately delaying its investigation against former telecom minister Dayanidhi Maran. Like Mr Raja, Mr Maran is from the DMK. He allegedly misused his office to pressure the owner of Aircel, C Sivasankaran, to sell his company to Maxis, an entrepreneur from Malaysia. Mr T Ananda Krishnan is close to the Maran family. After he bought Aircel, he invested nearly 600 crores in Sun TV, which is owned by Mr Maran's brother, Kalanidhi. The CBI has to prove whether this money was a quid pro quo.