MCA distances from Loop-Essar; asks CBI to seek DoT opinion

Ministry had informed the DoT that Essar's cross-holding shares were at 2.15 per cent and not above 10 per cent as alleged by CBI

PTI | July 29, 2011



CBI is likely to seek the opinion of the Law Ministry on the controversy whether Ruia-controlled oil major Essar was an associate in the telecom joint venture with Loop Telecom in the backdrop of divergence of views with the Ministry of Corporate Affairs.

While the Ministry has stuck to its view that according to its records Ruia's-led oil-major was not an associate in the telecom venture, CBI, which is likely to file a charge sheet against Loop and Swan by the end of next month in 2G spectrum scam case, claims it has evidence to show Loop was a front for Essar.

The Ministry of Corporate Affairs had informed the DoT that Essar's cross-holding shares were at 2.15 per cent and not above 10 per cent as alleged by CBI.

While sources claimed CBI had evidence to show that Loop acted as front for Essar while aquiring telecom licenses, senior agency officials favoured taking an opinion from the Law Ministry in the wake of the MCA opinion.

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