JOIN USEssar Group concealed its actual holding in Loop Telecom to secure radio waves as the unified access services licences (UASL), the Central Bureau of Investigation (CBI) told a special court here on Thursday.
The CBI said that rules clearly stated that no company should have 10 per cent or more equity holding in more than one licencee companies in the same service area for same service.
To conceal its actual holding in Loop, the Essar Group created a corporate veil through a web of other companies, special public prosecutor Anand Grover told special CBI judge O P Saini and referred to evidences on record, advancing final arguments in the case.
The Essar Group created a corporate veil with an intention to show that Loop Telecom’s application for radio wave complied with the eligibility criteria under clause 8 of the UASL, the CBI counsel charged. "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," the clause 8 of the UASL stipulates.
The prosecution will continue its arguments in the case on July 6 as it remained incomplete on Thursday.
As final arguments in the case resumed after a gap of over two months, the CBI on Wednesday told the court that the Essar Group directly provided almost entire money to Loop Telecom to enable it secure unified access services licences (UASL) for radio waves in violation of the rules.
“Apart from a small portion, all the money was directly funded by the Essar Group in the entire transactions,” CBI special public prosecutor told the court, drawing its attention towards the evidences on record which showed how money was pumped in by the Essar Group through various companies to enable its front company Loop Telecom Limited secure radio waves.