The Central Bureau of Investigation (CBI) has alleged that the Ministry of Corporate Affairs and the Department of Telecommunications (DoT) were unable to prevent Loop Telecom from obtaining mobile permits it was not entitled to.
The chargesheet filed by the CBI says that DoT had received several complaints that Loop Telecom was a front company of the Essar Group, thus violating rules barring companies from holding more than 10 per cent in two operators.
DoT then referred the matter to the Ministry of Corporate Affairs, whose detailed investigation established the violations. However, the Ministry chose not to send a definite opinion and instead furnished a vague report leading to DoT taking a broad view of the matter even though many of its officials recommended that showcause notices be issued to Loop Telecom for termination.
