The IP Khaitan Group has said that it has certified bank documents that highlight investments of Rs 7 billion, sourced from its group businesses, to pick up 98 per cent stake in Loop Telecom, say news reports.
The group has further claimed that these investments dispelled allegations that the Khaitans were an alter ego of the Ruias to illegally bid for telecom spectrum licences.
The Khaitans have furnished a letter from Standard Chartered Bank stating that it was aware of their $160 million investment in Loop through Mauritius between 2005 and 2008.
Meanwhile, Prashant Ruia, CEO, the Essar Group has said that the audited numbers showed that the Ruias were net borrowers from the Khaitans from 2006 to 2010.
Ruia said that the Khaitans had extended loans of approximately Rs 26 billion to the Essar Group in 2006, which were fully repaid in 2010.
He added that this followed the sale of BPL?s mobile operations in Tamil Nadu, Kerala and Maharashtra to Hutchison. So, Ruia concluded, the question of the Essar Group funding the Khaitans to bid for spectrum in 2008 was irrelevant.
