The Ministry of Corporaye Affairs has reiterated its stand in the Loop Telecom-Essar Group case. This is after the Central Bureau of Investigation (CBI) stated that the Department of Telecommunications (DoT) and the Ministry of Corporate Affairs failed to take appropriate action against the Essar Group in the case.
It has been alleged that the Essar Group used Loop Telecom as a front company to acquire 21 spectrum licences in 2008.
The Ministry of Corporate Affairs has held varying views of the case. Initially, it opined that Loop Telecom was an associate company of the Essar Group and should not have been eligible for licences in 2007.
Thereafter, the Ministry stated that Loop Telecom was not an associate of the Essar Group, as the group had a 2.15 per cent stake in the firm when it applied for the Unified Access Service Licence (UASL) in 2007.
