RCOM and the Essar Group held less than 10 per cent stake when spectrum was allotted: Loop Telecom and Etisalat DB

Etisalat DB (earlier Swan Telecom) and Loop Telecom, who are being probed by the CBI for their role in the 2G spectrum issue, have told the Supreme Court that the stakes of Reliance Communications (RCOM) and the Essar Group respectively in their companies were within the permissible limit to be eligible for spectrum allocation, according to news reports.

Both companies said RCOM and the Essar Group had less than 10 per cent share capital in Etisalat and Loop Telecom when they applied for 2G licences.

It was alleged that both companies were ineligible for 2G spectrum as RCOM and the Essar Group had more than 10 per cent shares in Swan and Loop respectively. As per the rules and regulation for the allotment, no company or firm can apply for licenses bundled with start-up spectrum in which any telecom operator has equity of more than 10 per cent.