The special CBI court would decide on whether or not to take cognizance of the Essar-Loop Telecom charge sheet in the 2G spectrum case on December 21. Central Bureau of Investigation (CBI) counsel U U Lalit said Loop Telecom had acted as Essar Group’s alter ego and made false representations to the department of telecommunications (DoT).
The counsel said Kiran Khaitan and I P Khaitan (sister and brother-in law-of Essar group promoter Ravi Ruia) had acted as benami holders for Loop promoters, and had misled the DoT, along with Essar Group’s Anshuman Ruia and Ravi Ruia. Anshuman Ruia is Ravi Ruia’s nephew.
The CBI counsel said, “The accused created a complex corporate veil” to cheat the DoT and violated clause eight of unified access service licence guildelines.
On December 12, the CBI had filed a charge sheet against Essar promoters Ravi Ruia and Anshuman Ruia, Loop Telecom promoters Kiran Khaitan and her husband I P Khaitan, and Essar Group director (strategy and planning), Vikas Saraf. The companies named as accused are Loop Telecom Pvt Ltd, Loop Mobile India Ltd and Essar Tele Holding.
Lalit said the CBI investigation had revealed Ravi Ruia was a director of Essar Investment from December 10, 1976, to November 11, 2008 — when all Essar group transactions with Loop Telecom and its holding companies took place. Ravi Ruia and Anshuman Ruia, along with Saraf, all from the Essar group, remained directors on the board of Hutchinson Essar during the entire period - 2004.
CBI also said the Khaitans willfully participated in the conspiracy on behalf of the accused conspirators of Essar Group. It said the entry fee ought to have been revised by the DoT by 3.5 times, since the adjusted gross revenue, per mega hertz of spectrum, had increased by 3.5 times during 2003-08. “The investigation has, therefore, revealed by paying an entry fee of Rs 1,455 crore, accused Loop Telecom, in conspiracy with other accused, obtained 21 UAS licences worth Rs 5,092 crore,” CBI said.
In an official statement, Essar said the company always maintained it had fully complied with all the UASL licence provisions and that the alleged charges filed by the CBI relate to a violation of clause eight of the UASL guidelines. “These are ill-conceived, and only made possible by CBI, ignoring crucial facts made available to it. The CBI has also disregarded the views of the government of India. Essar has consistently maintained its shareholding in Loop has always been less than 10 per cent since the acquisition of BPL Mobile by the Khaitan group in 2005. Essar’s position has been validated at every stage by various arms of the government,” said a company statement.