Essar,Loop: Court frames charges

Grants bail to promoters

A special CBI court on Friday framed charges of cheating and criminal conspiracy against the promoters of the Essar Group and Loop Telecom in a case arising out of the 2G spectrum scam. The court also granted bail to all the five accused in the case,directing them to furnish personal bail bond of Rs five lakh each and two sureties of same amount.

While Essar Groups director (strategy and planning) Vikas Saraf has been charged with the substantive charge of cheating meaning that he committed the act all the five accused have been charged with the criminal conspiracy to commit cheating. Their trial will now commence on July 26.

The CBI,in its chargesheet filed on December 12 last year,had named eight accused,including three companies. The agency named Essar group promoters Ravi Ruia and Anshuman,Essars Saraf,as well as Loop Telecom promoters I P Khaitan and Kiran Khaitan.

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The agency alleged that Loop Telecom made fraudulent applications for 21 licences though they did not meet the eligibility criteria for spectrum applications. The chargesheet points to a complex corporate veil that was set up to hide the Essar Groups use of Loop Telecom as an alleged front company to get licences issued by the Department of Telecom. The CBI,however,had not named any DoT official in the chargesheet,saying that the accused cheated them into issuing the licences.

DOT was thus cheated into doing all this by you and thereby you all committed an offence punishable under Section 120 B (criminal conspiracy) read with 420 IPC (cheating) and within my cognizance, said Special CBI Judge OP Saini.

Secondly during the said period,you accused Vikas Saraf got false representations made to the DoT officials through your subordinates/employees to the effect that the applicant company was in compliance of clause 8 of UASL guidelines and misled/cheated them into believing so and issuing LoIs,signing of UAS licences and allocation of spectrum and thereby you committed an offence punishable under section 420 IPC and within my cognizance, the judge added.

Clause 8 of the Unified Access Services Licences states that no individual or company can hold more than 10 per cent equity in any company that operates in the same service area.