The CBI on Friday concluded its arguments in the 2G spectrum scam case, in which Essar Group promoters Ravi and Anshuman Ruia and Loop Telecom promoters Kiran and I. P. Khaitan are accused, stating a clear case of criminal conspiracy to cheat the Department of Telecommunications was made out against them.
Special Public Prosecutor U. U. Lalit said that despite the DoT seeking clarifications on the structure of Loop Telecom, the accused did not make use of the opportunities granted to clear the air. This showed the “extent of their culpability.”
The CBI said in its charge sheet that Loop Telecom violated Clause 8 of Unified Access Service Licence guidelines which prevents the existing UAS licence holding promoter companies from owning over 10 per cent equity in another licensee firm in the same service area.
Delving into the charge of cheating against the seven accused, Mr. Lalit said the offence, under Sections 415 and 420 of the Indian Penal Code, was clearly made out the moment the accused made a “false and fraudulent” representation before the DoT. As a result of this representation, the third party (DoT) was “forced to do something” (DoT granted Loop Telecom UAS licences and 2G spectrum) that it would not have normally done unless a false representation was made.
Mr. Lalit said there were three striking elements in the case: “The same group which is controlling everything under the corporate set-up or veil, the structure of the new licensee (Loop Telecom) and the identity is something so close and clear that the alter-ego of the new applicant (Loop Telecom) is nothing but the company which has more than 10 per cent stake in the other. Secondly, the representation before the DoT was fraudulent. Thirdly, the DoT was taken for a ride. The Department had sought clarifications. But for the [reply to the] clarifications [sought] which were untrue and incorrect, the DoT would not have acted the way it had...”
