The CBI has alleged that Loop Telecom Pvt Ltd was a front company for Essar, which already had a stake as an existing telecom operator, to secure additional spectrum which was in contravention of the then telecom policy.
R Kirthivasan, a chartered accountant, told Special CBI Judge O P Saini that his accountancy firm has been doing audit works for both Essar and Loop Group and employees of both the groups used to assist him in their respective work separately.
"In this (audit) work, employees only of Loop group used to help me. When I did the audit work of Essar group companies, employees only of Essar group used to assist me. I used to check the statutory record of Loop group at its Mahim Office, Mumbai. It is correct that Essar group and Loop group are two different groups," he said.
Essar Group promoters Ravi Ruia and Anshuman Ruia, Loop Telecom promoters Kiran Khaitan and her husband I P Khaitan are facing trial in the case on the charges of conspiracy to cheat the government.
Essar Group Director (Strategy and Planning) Vikas Saraf is also facing trial in the case along with three companies -- Loop Telecom Pvt Ltd, Loop Mobile India Ltd and Essar Tele Holding Ltd (ETHL).
During his cross examination by senior advocate S V Raju, who appeared for Ruias and ETHL, Kirthivasan said that he had not mentioned Saraf's name as a key managerial personnel in the balance sheets of Loop Group.
"As per AS (Accounting Standard) 18, when there is a transaction between a key managerial personnel and the company, its disclosure is required to be made.
"I have not mentioned name of Vikas Saraf as key managerial personnel in any disclosure made by me in compliance of AS 18 in the balance sheets of the Loop group," he said.
During the proceedings, the court also recorded the statement of another prosecution witness Vidyadhar Vaman Chakradeo, a practising company secretary.
The court also allowed the plea of Ruias seeking exemption from personal appearance.
Ravi and Anshuman Ruia had moved the pleas seeking exemption from personal appearance before the court saying that they both have to attend some important business meetings on October 4 and 5.
The judge, however, allowed their plea for exemption from personal appearance for October 5 and directed them to mark their presence in the court tomorrow morning.
The CBI had earlier told the court that Loop Telecom Pvt Ltd was completely controlled by Essar Group which used it as a "front" to secure the 2G licences in 2008.
It had alleged that the accused persons and companies created a "complex corporate veil" to cheat the Department of Telecom by concealing that Essar, an existing telecom operator having substantial shares in Vodafone (then Hutch), was having more than 10 per cent stake in Loop Telecom Pvt Ltd.
Essar had denied any involvement in the 2G spectrum scam. It had said that they have not been holding nearly or over 10 per cent stake in the Loop Telecom and its stake was only 2.15 per cent and there was no violation of clause 8 of the Unified Access Services Licences (UASL) guidelines.
