The investment policy cell of the Department of Telecommunications (DoT) will meet officials of Kaif Investment Limited and Capital Global Ltd, both Mauritius-based companies, for a second round of talks in March to settle the ongoing disputes related to Loop Telecom. The members of DoT's investment policy cell, who had met the foreign investors of Loop Telecom, promoted by the Khaitan family, last week, are expected to find ways to an acceptable solution to the disputes regarding the bilateral treaty between India and Mauritius.
The Central Bureau of Investigation (CBI) says a probe has revealed Essar Teleholdings Ltd, which was holding substantial equity in Vodafone Essar Ltd that has presence across the country, was also holding substantial equity in Loop Telecom Ltd and Loop Mobile India Ltd (erstwhile BPL Mobile Communications Ltd), under a corporate veil fraudulently created by the promoters. The case is yet to be settled.
Khaitan Holdings had earlier written to the DoT for protection of their investment under the treaty due to the cancellation of licences of Loop Telecom Limited.
Khaitan Holdings (Mauritius) had invested more than $140 million directly in Loop Telecom, apart from other indirect investments. These investments are protected under treaties between the governments of India and Mauritius. However, Loop lost all its licences following the Supreme Court order in February 2012 cancelling 122 telecom permits.
