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 company operates in 21 circles. Mumbai will be in exception, which has a separate licence.
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
Payment apps PhonePe and Paytm have helped citizens avert potential financial frauds worth Rs 200 crore by using the fraud risk indicator platform developed by the Department of Telecom, a senior Walmart group official said on Wednesday.
CBI said Swan Telecom and Loop Telecom were allegedly used as front companies by Reliance Group and Essar respectively.
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).
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.
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.
The third chargesheet was scheduled to come out by the first week of July.
The Central Bureau India (CBI) on Monday alleged before a special court that Essar Group of companies had created a "corporate veil".
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.
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.
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.
Lenders, with Rs 600-cr exposure to telco, want it to sell properties to repay loans.
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.
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.
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 policy is also pushing for a one-country-one-licence regime, which means removal of roaming charges.
The mobile tariffs in the world's cheapest telecom market are set to fall further by at least 20-25 per cent during the year, more so due to increasing number of telecom operators and infrastructure overcapacity.
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 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.
Agreement between Bharti Airtel and Loop Mobile, which offers mobile services in Mumbai, expired on October 31
The Mysuru-Darbhanga Express train was given a green signal to pass through the main line, however, it entered a loop line already occupied by the freight train.
Loop Mobile has debt of Rs 400 crore (Rs 4 billion), which is likely to be included in final deal size.
Besides Ruias, the CBI charged Essar Group director (strategy and Planning) Vikas Saraf, Loop Telecom promoters Kiran Khaitan and her husband I P Khaitan.
"The team of senior officials have found that the mechanical parts of the interlocking system were opened. Normally, these parts get broken after an accident due to the heavy impact of the locomotive and coaches," a source, close to the inspection team, said.
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.
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 current termination charge is 10 paisa a minute.
This follows the expiry of its brand-use agreement with the BPL Group. The company, which faces an ownership battle between the Ruias of the Essar Group and the UK-based Vodafone, does not expect 'any issues' to arise from the change. "Loop is an extension of an ongoing campaign, Get in the Loop, and it will be easy for our subscribers to identify with this new brand name," said BPL Mobile Director and CEO Sanjeev Chachondia.
This is the first merger in the country's crowded telecoms market in nearly six years.
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.
The Supreme Court in February, 2012 had quashed 122 2G licences.
Justice Dinesh Kumar Sharma said the parties shall file brief written submissions not exceeding five pages.
Temporary relief for Bharti, Vodafone and former telecom secretary Shyamal Ghosh
Firms to pay Rs 24,700 cr if spectrum formula is accepted.
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