'Essar's holding less than 10% in Loop Telecom'

PTI Updated - July 08, 2011 at 03:43 PM.

Amid raging controversy over Essar’s holding in Loop, the Corporate Affairs Minister, Mr Murli Deora, has asserted that the holding of Ruias is less than 10 per cent in Loop Telecom and the Ministry stands by its reports.

“We stand by what we have given (to CBI)... Essar holding in Loop Telecommunication is below 10 per cent”, he told reporters today pointing out that the Ministry had given two reports to the Central Bureau of Investigation.

The clarification comes in the wake of the CBI claims that the Essar Group had over 10 per cent stake in Loop Telecom at the time of award of the 2G spectrum licence. It was alleged that Essar used Loop as a front company to corner spectrum in violation of the guidelines.

Noting that there was some communication gap between the CBI and the Ministry of Corporate Affairs, Mr Deora said that “of late we have worked to fill the communication gap and we are completely cooperating with the CBI on investigation’’.

The CBI had earlier termed as unfortunate the letter from the Corporate Affairs Ministry that said that Essar had less than 10 per cent stake in Loop.

During a hearing in the 2G spectrum case in the Supreme Court, the CBI had questioned the role of MCA in giving clean chit to Essar Group.

The MCA has so far given two reports — in 2009 and 2011 — on the cross holding of shares of Essar in Loop Telecom.

Loop got spectrum licence during the tenure of the former Telecom Minister, Mr A. Raja, the prime accused in the multi-crore 2G spectrum scam, who is currently in jail.

Published on July 8, 2011 10:01