‘Clear case of cheating’ by Essar in 2G scam, CBI tells SC

The Central Bureau of Investigation told the Supreme Court on Thursday that there was a clear case of cheating against the owners of the Essar Group and Loop Telecom in the 2G spectrum imbroglio.

With all three investigating agencies – the CBI, the Enforcement Directorate and the Income Tax Department – having been asked by the apex court to file status reports on the progress of the investigation, the CBI said it believes Loop Telecom was set up by the Essar Group to illegally obtain 2G licences.

The CBI rejected a finding by the corporate affairs ministry that Loop Telecom was not majority-owned by Essar.

"The applicant company (Loop) was operating under the corporate veil of the main company (Essar) and was nothing but an alter ego of the main group. Hence, the declaration made by the applicant company was false and an offence under Section 420 (of IPC) is made out," CBI counsel K K Venugopal told a bench comprising Justices G S Singhvi and A K Ganguly.

The CBI also said the role of Essar Group chief executive Prashant Ruia is being investigated probed.

Former telecom minister Dayanidhi Maran, accused by businessman C Sivasankaran of coercing him to sell his majority stake in telecom operator Aircel to Malaysia's Maxis, was given a partly clean chit on this matter at least – though he was far from being cleared of charges.