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Som Subramaniam, former chief financial officer of BPL Mobile Communications, on Friday told the trial court in the telecom spectrum case that Loop Telecom was controlled by the Essar group.
“Essar Group was controlling BPL Communications. It is correct that BPL Communications was the holding company of Loop Telecom…. for this reason, my understanding is that Loop Telecom was also controlled by Essar Group,” said Subramaniam while deposing before the court.
He said Essar Power and Essar Steel had given a corporate guarantee to State Bank of India for a loan taken by Loop Telecom. Subramaniam was cross-examined by senior lawyer Harish Salve, who was representing Essar Teleholdings.
The prosecution witness added he was “not aware of the shareholding control of BPL Communications, the holding company”. Subramaniam said he was reporting to Vikas Saraf, who had told him the company would be merged with Hutchison Essar Limited and that approval of the department of telecommunications would be required.
Judge O P Saini pulled up Subramaniam for giving “long-winding and evasive replies” and warned him to be careful in future. Subramaniam also said he did not know if I P Khaitan, promoter of Loop Telecom and an accused in the case, contributed any fund for making the unified access service licence applications.
“The promoters of BPL Communications Limited might have funded these 21 applications partly,” he added.
According to the CBI, the accused “created a complex corporate veil” to cheat the department of telecom, violating Clause 8 of Unified Access Service Licence guidelines.
On December 12, 2012, the Central Bureau of Investigation filed the chargesheet against Essar group and Loop promoters and three companies — Loop Telecom Pvt Ltd, Loop Mobile India Ltd and Essar Tele Holding. Ravi Ruia and nephew Anshuman Ruia, besides Loop Telecom promoters Kiran Khaitan and I P Khaitan (Ravi Ruia’s sister and brother-in-law, respectively) and Vikas Saraf were chargesheeted in the case by CBI.
