2G: Essar’s Ruia,Loop execs get bail

Ravi Ruia,who along with his brother Shashi is India’s ninth richest,as ranked by Forbes,is among the top businessmen to be touched by a Central Bureau of Investigation (CBI) probe into the scandal,which was estimated to have cost the government as much as $34 billion lost revenue.

Ravi Ruia and others have been accused of violating a rule that restricts companies from owning 10 per cent or more than one competing telecom carriers. The CBI have accused the Essar executives of controlling Loop Telecom,which was awarded permits in the scandal-tainted 2008 sale.

That was seen as a violation as Essar already owned a third of a joint venture with Vodafone (VOD.L).

Last year,Essar agreed to sell its stake in the Indian mobile joint venture with Vodafone after a fractious relationship between the partners spilled over into the open.

The New Delhi court also granted bail to Kiran Khaitan and I.P. Khaitan,two of the owners of Loop Telecom.

The Supreme Court of India in February ordered all 122 telecoms licences granted in the scandal-tainted sale be revoked. Loop Telecom has said it will close down operations as its 21 zonal licences are set to be cancelled.

Shashi and Ravi Ruia founded Essar in 1969 following the death of their father and business mentor. Since winning a contract to build a breakwater at Chennai port,they have rapidly expanded the group to include shipping,steel,refining,power and telecoms.

Group company Essar Energy (ESSR.L) raised nearly $2 billion in a London IPO in mid-2010. Ravi Ruia had stepped aside temporarily as chairman after police filed charges.

The CBI have charged a total 19 people and six companies in the telecoms case,including former telecoms minister A.Raja who presided over the permit grant process and also top executives of Unitech (UNTE.NS) and DB Group.

All the accused individuals have been granted bail as their trial continues. All of them have denied any wrongdoing.