New Delhi: CBI Wednesday told a special court that Essar group offficials were exercising control in Loop Telecom Ltd (LTL), a "front company", to bag 2G spectrum licences in violation of a provision under the Unified Access Services Licences (UASL) guidelines.
Advancing the ongoing final arguments in the case, Special public prosecutor Anand Grover said that people may have nominal role in a firm but the question is who exercises the direct control or who have "significant influence" in the policy-making of a company.
"In this case, every person who was exercising control or was having significant influence was a person from Essar group of companies, which was in violation of clause 8 of UASL guidelines" he said.
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."
Grover told Special CBI Judge O P Saini that during the course of his argument he will try to establish that the "front companies" were actually associate firms directly controlled by Essar group, in which there was more than 10 per cent equity share holding.
He said that purpose of clause 8 of UASL guidelines was to encourage competition in the telecom sector.
The ongoing arguments in the case remained inconclusive and would continue on August 12.
On August 3, CBI had told the court that LTL was a "front company" for Essar Tele Holding Ltd (ETHL) and that violation of clause 8 of UASL guidelines by the accused firms was a crucial factor.
It had said that from every count, the court can see that clause 8 was violated.
Essar Group promoters Ravi Ruia and Anshuman Ruia, Loop Telecom promoters, Kiran Khaitan, her husband I P Khaitan and Essar Group Director (Strategy and Planning) Vikash Saraf are facing trial in the case, along with three telecom firms -- LTL, Loop Mobile India Ltd and ETHL.
The five individuals accused, who are out on bail, have denied the charges levelled by CBI.
CBI had earlier argued in the court that Essar Group of companies had "directly funded" majority of the money involved in the transactions and as per documents on record, the money trail originated from various firms of Essar Group.
CBI had chargesheeted the accused on December 12, 2011, alleging they had cheated the Department of Telecommunication by using Loop Telecom as a "front" to secure 2G licences in 2008.
On May 25, 2012, the court had framed charges against all the accused under section 120-B (criminal conspiracy) read with section 420 (cheating) of IPC, while the charge of cheating was made out only against Saraf.
The recording of prosecution evidence in the case started on July 26, 2012. The court had recorded the statements of 95 CBI witnesses, running into 1,056 pages, while the accused examined 12 witnesses in their defence.
The court on September 15, 2014 had concluded recording of defence evidence in the case.
