2G scam: Loop moves court for compounding

It is the first company to approach the court for compounding

Loop Telecom, which was chargesheeted by the CBI in relation with the 2G telecom spectrum scam, on Thursday filed a plea before a Delhi court, stating it was willing to a fair and reasonable terms for compounding.

It is the first company in the case to approach the court for compounding, a process by which both parties reach an agreement to close the case. Loop said it had a strong case for acquittal and application.

However, the company did not want to comment on the issue. The plea would come up for consideration on Tuesday. The company it has been facing trial for the offence of conspiracy to cheat and the said offences are compoundable.

The move assumes importance as Loop’s licence in the 900-MHz spectrum band in Mumbai circles would be due for renewal next year. To continue operations, the company would have to acquire spectrum via auction, expected in January. The spectra Loop hold in Mumbai would be auctioned in the next round as well.