Spectrum scam: Third charge sheet in limbo

The Central Bureau of Investigation (CBI), which had earlier set a deadline of September 30 for filing the third charge sheet in the 2G spectrum allocation case, has now said it would take more time to file it.

A senior CBI official told Business Standard the agency was not in a position to set a deadline any more, since it would need to further investigate links between Loop Telecom and Essar Group, before a charge sheet could be filed. “We need to be sure of the charges we put. There should not be any contradiction in terms of legalities,” the official said. He added as of now, the third charge sheet was open-ended, indicating the uncertainty around it.

The CBI has received the feedback report of the director of prosecution on the matter, but there are contradictions in the ‘associate’ company clause. While the CBI alleges Loop is the front company of Essar, legally, Loop cannot be called an ‘associate’ of the Essar Group. To get its facts and figures in place, the CBI is probing the case further, and this is likely to take at least another 15-20 days.

The CBI has placed on record the law ministry’s opinion on the definition of an ‘associate’. To be called associates, the parent company must have a shareholding of more than 50 per cent in both the companies, according to the law ministry. Recently, three former Essar officials had given their statements in a trial court. They had said Essar was in control of Loop Telecom at the time of licensing. The CBI would seek to use these testimonies to further strengthen its case.

Replying to a question on whether the CBI’s case on the 2G spectrum controversy was weakening, an official said the agency was confident that despite some of the recent developments like the Telecom Regulatory Authority of India report on ‘no loss to the exchequer’ and the law ministry’s opinion on ‘associate’ companies, its basic case against former telecom minister A Raja was still strong.

On the Aircel-Maxis deal and the role of DMK member and former UPA minister Dayanidhi Maran, the official said the CBI was continuing with its investigation and was likely to register a case against Dayanidhi Maran for deliberately delaying a licence to C Sivasankaran’s Aircel. Also under probe is whether Maran expedited the licensing process, as soon as Aircel was sold to Maxis, and whether the Sun Network (owned by the Marans) secured favours from Maxis.