The Central Bureau of investigation (CBI) has begun questioning Loop Telecom?s senior officials, according to news reports. These executives are being questioned about the procedure via which their company was awarded a pan-India telecom licence in 2008, notwithstanding the fact that it allegedly did not meet the eligibility criteria.
Prior to this, the Comptroller and Auditor General of India?s (CAG) November 2010 report had criticised the Department of Telecommunications (DoT) for not rejecting Loop?s application for a mobile permit and had said the DoT had failed to verify the facts and figures submitted by the company.
The CAG had also said that investigations undertaken by the Ministry of Corporate Affairs had revealed that Loop Telecom had submitted its applications for a mobile permit on September 3, 2007, with an altered memorandum of association (MOA) and had failed to provide full disclosures.
According to the CAG, Loop had engaged in deliberate misrepresentation of facts which was done with the fraudulent and malafide intention of obtaining license from DoT, although they (Loop) were not eligible for licenses on that date. The CAG also added that the Ministry of Corporate Affairs? probe had revealed that Loop did not have the requisite paid-up share capital on the date of application.
