2G court correct in not referring LTL matter to Lok Adalat: SC

The Supreme Court today said that the special 2G court was "correct" in dismissing a petition by Loop Telecom Ltd (LTL), facing trial in a case arising out of the 2G scam probe, for a direction to refer the matter to the Lok Adalat for settlement.
"The trial court was correct in ruling that it cannot be sent to the Lok Adalat," a bench of Justices J S Khehar and R Banumathi said.
The Lok Adalat is an alternative dispute resolution mechanism by which the parties involved in civil and compoundable criminal cases try to arrive at a compromise to settle their matter. If the parties concerned do not arrive at a compromise, the matter is remanded back to the court for disposal.

The apex court was hearing the petitions filed by LTL and Essar Group Director (Strategy and Planning) Vikash Saraf, who is also an accused in the case.
Sensing the mood of the bench, senior advocate Kapil Sibal who was representing LTL, sought to withdraw the petition and said they would file an application before the special court for compounding of offence alleged against them.
Additional Solicitor General Tushar Mehta, appearing for Department of Telecommunications (DoT), said, "We (DoT) are not agreeable to compounding of offence."

However, the bench pulled up DoT, saying, "Why do not you take a stand? Why do you always say what CBI says? You should take a stand. Do not always say what CBI is saying."

The apex court had earlier agreed to examine the pleas of LTL and Saraf seeking a direction to refer the matter to the Lok Adalat.
LTL had argued that it was facing trial for the alleged offence under section 420 (cheating) read with 120-B (criminal conspiracy) of the IPC and these offences are compoundable.
As per the provisions of the Code of Criminal Procedure (CrPC), an offence under section 420 of IPC is compoundable if both the complainant and the accused arrive at a mutual consent.
CBI's special public prosecutor Anand Grover had opposed the plea, saying the case before the special court was in its final stage.

Essar Group promoters Ravi Ruia and Anshuman Ruia, Loop Telecom promoters Kiran Khaitan, her husband I P Khaitan and Saraf are facing trial in the case along with three firms -- LTL, Loop Mobile India Ltd and Essar Tele Holding Ltd.
All of them have denied the charges levelled by CBI.
CBI had filed the charge sheet against them alleging they had cheated DoT by using Loop Telecom as a "front" to secure 2G licences in 2008.