The company operates in 21 circles. Mumbai will be in exception, which has a separate licence.
The Ministry of Corporate Affairs has asked the Department of Telecommunications to reconsider its decision to issue Mumbai-based Loop Telecom an all-India mobile services licence, suggesting the company had links with Essar Group that violate restrictions on telecom cross-holdings by groups.
The DoT has sought legal opinion on whether to seek a review of the court order or withdraw the penalty.
Despite its run-in with the Ministry of Corporate Affairs, Mumbai-based GSM telecom service provider Loop Telecom will launch its services in the Tamil Nadu and Orissa circles by next week.
The CBI on Wednesday called Loop Telecom, CEO Sandeep Basu, Chairman of Shyam group Rajiv Mehrotra, former telecom minister A Raja's brother A K Perumal and close aide Sadiq Batcha, for questioning in relation with the 2G spectrum scam.
The ongoing arguments in the case remained inconclusive and would continue on August 5
The Delhi high court will pronounce its verdict on Friday on whether to admit the Central Bureau of Investigation's (CBI) appeal challenging the acquittal of former telecom minister A Raja, firms and others in the 2G spectrum allocation 'scam' case.
The Central Bureau of Investigation (CBI) began making submissions on Monday on its appeal before the Delhi high court challenging the acquittal of accused persons, including former telecom minister A Raja, and firms in the 2G spectrum allocation scam case in December 2017.
Justice Dinesh Kumar Sharma said the parties shall file brief written submissions not exceeding five pages.
The CBI contended before the Delhi high court on Tuesday that there were glaring illegalities in the trial court judgment that acquitted former telecom minister A Raja and others in the 2G spectrum allocation scam case.
Loop Telecom on Wednesday stated that it has fully complied with the licensing norms and has submitted the certified shareholding structure in the company to the DoT, saying that the Essar Group has equity of less than 9.99 per cent in the firm (Loop).
Besides Ruias, the CBI charged Essar Group director (strategy and Planning) Vikas Saraf, Loop Telecom promoters Kiran Khaitan and her husband I P Khaitan.
Essar group promoters Ravi Ruia and Anshuman Ruia and Loop Telecom promoters I P Khaitan and Kiran Khaitan, besides Essar group director (Strategy and Planning) Vikash Saraf were directed by the court to furnish personal bail bond of Rs 500,000 each and two sureities of like amount.
CBI said Swan Telecom and Loop Telecom were allegedly used as front companies by Reliance Group and Essar respectively.
The Department of Telecom has worked out a one-time spectrum charge of over Rs 2,060 crore to be levied from operators for the period they remained in business after their licences were cancelled in February last year, sources said.
The Central Bureau India (CBI) on Monday alleged before a special court that Essar Group of companies had created a "corporate veil".
Loop Telecom has been looking for a strategic investor for some time now and people close to the development said the telecom operator was willing to sell up to 45 per cent stake in the firm.
It is not clear, however, whether the two players are considering a majority stake or would be content as investors with 26 per cent.
The telco, being one of the first operators in the circle, has a strong base of high-value subscribers; Airtel could leverage that for its top-end services.
Temporary relief for Bharti, Vodafone and former telecom secretary Shyamal Ghosh
Over a year after the judgement was reserved, a bench of justices G S Singhvi and S J Mukhopadhaya rejected the pleas of the telecom companies which pleaded that they be tried in a magisterial court unlike other accused in 2G cases as they have not been charged under Prevention of Corruption (PC) Act.
International telcos such as Russia's Sistema and Norway's Telenor and foreign investment funds such as KAIF Investments Mauritius and Capital Global Ltd (investors in Loop Telecom) have sent legal notices to the Indian government under the respective Bilateral Investment Promotion & Protection Agreement or Comprehensive Economic Cooperation Agreement.
The operator is planning to turn aggressive in adding subscribers.
Essar Energy chairman Ravi Ruia on Wednesday announced his decision to step down from the post amid the Central Bureau of Investigation claiming that the Essar Group had suppressed facts related to its equity holding in Loop Telecom, an allegation denied by the conglomerate.
The apex court would hear the matter on March 1 and the outcome would decide the forum and the course of trial.
Firms to pay Rs 24,700 cr if spectrum formula is accepted.
Continuing its probe in the 2G spectrum allocation scam, the Central Bureau of Investigation questioned two top telecom honchos besides close aides of former Telecom Minister A Raja, including his brother Kalia Perumal. The agency quizzed chief executive officer of Loop Telecom Sandip Basu and chairman of Sistema Shyam Teleservices Rajiv Mehrotra in connection with the scam, official sources said.
The third chargesheet was scheduled to come out by the first week of July.
Central Bureau of Investigation has received a number of representations including some from legal luminaries saying the Essar group has no links with Loop Telecom which is under the scanner in the 2G spectrum allocation scam.
The Institute of Company Secretaries of India (ICSI) has pulled up the company secretaries of two telecom companies whose names have been mentioned in the Comptroller and Auditor General's (CAG's) report on the controversial allotment of airwaves. The two officials named in the report are Hari Nair, representing Swan Telecom, and Vidyadhar Chakradeo, the company secretary of Loop Telecom.
Seeking exemption from personal appearance for Ruias, Rohatgi said he was appearing despite the fact that his clients, at present in UAE, have not been 'properly' served with the court summonses.
Summons have been issued to some new telecom firms asking for financial records and documents, according to official sources. However, the names of the companies could not be ascertained.
The policy is also pushing for a one-country-one-licence regime, which means removal of roaming charges.
The ministry of corporate affairs - under new minister Murli Deora - has reopened for further investigation the cases of two companies allegedly involved in the unravelling 2G scam. A senior official said that the ministry was currently probing Swan Telecom and Loop Telecom.
The CBI has claimed that Essar had more than 10 per cent of cross-holdings in Loop Telecom which was against the norms, a charge denied by the two companies.
Nine companies were given new licences in January 2008.
Telcos such as Loop, Etisalat and Videocon have done little to churn the subscriber base.
Loop is one of the operators which have been named along with others in the entire case as it was awarded licence in 2008 by former Telecom Minister A Raja.
Loop got licences to offer mobile services in 21 circles by the telecom ministry run by Raja, now in jail, in 2008. Essar has investment in Loop; it also holds 33 per cent equity in Vodafone Essar, a big player in the sector.
The new telecom players in the country, which had received licences in January 2008 and were subsequently allocated spectrum, are ready to roll out services in the next three to four months.
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