<div><strong>Haider Ali Khan</strong><br><br>The Central Bureau of Investigation (CBI) has informed a special court that Loop Telecom Ltd (LTL) was a front company for Essar Tele Holding Limited (ETHL) to bag 2G spectrum licences. It was against the provisions of Unified Access Services Licences (UASL) guidelines.</div><div>Special public prosecutor Anand Grover said that violation of clause 8 of UASL guidelines by the accused firms was a crucial factor.</div><div> </div><div>As per clause 8 of UASL guidelines, no single company or legal person, either directly or through its associates, shall have 10 per cent or more equity holding in more than one Licensee Company in the same service area for same service.<br> </div><div>He also told Special CBI Judge O P Saini that purpose of clause 8 of UASL guidelines was to encourage competition in the telecom sector which was violated in this case. CBI had earlier told the court that accused firm LTL was used by Essar Group of companies to acquire 2G licences by circumventing the procedures.</div><div> </div><div>Essar group promoters Ravi Ruia and Anshuman Ruia, Loop Telecom promoters, Kiran Khaitan, her husband I P Khaitan and Essar Group Director Vikash Saraf are facing trial in this case along with three telecom firms, LTL, Loop Mobile India Ltd and ETHL.</div><div> </div><div>CBI had earlier argued that Essar Group had directly funded majority of the money involved in the transactions and as per documents available on record.<br> </div><div>CBI had filed charge sheet against these accused on 12 December 2011 alleging they had cheated the Department of Telecommunication by using Loop Telecom as a front to secure 2G licences in 2008.<br><br>The 2G scam broke around the end of 2010 along with the leaked Radia tapes. Initially, the UPA regime strongly denied any wrong doing and claimed that there was “ Zero Loss” to the exchequer on account of spectrum allocations. Subsequently, the Supreme Court monitored a CBI investigation. The former telecom minister A. Raja and DMK leader and daughter of M. Karunanidhi spent time behind bars are being tried.</div><div> </div>
