2G spectrum licence a big muddle: Essar Tele Holding to court

Essar Tele Holding Ltd (ETHL), facing trial in a case arising out of the 2G scam probe, today told a special court that spectrum licence was a "big muddle" as explanation of a clause of the Unified Access Services Licences (UASL) was ambiguous.
Senior advocate Harish Salve, who appeared for ETHL, told the court that CBI's allegation that the firm had cheated the government was wrong as the probe agency and the Department of Telecommunications (DoT) have taken contradictory positions regarding the explanation of clause 8 of UASL guidelines.
"There is a doubt in the mind of DoT itself regarding the clause which shows the ambiguity about it," he told Special CBI Judge O P Saini.

Salve also referred to the DoT's affidavit filed before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) in response to a plea filed by Loop Telecom Ltd (LTL) seeking refund of entry fees of Rs 1,454 crore paid by it to the department in January 2008.
"The affidavit filed by the DoT before TDSAT shows the stand contradictory to what the CBI has taken before the trial court. There DoT says my contract is valid. In the trial court, CBI says that government has been cheated," he said.
"This licence is the big muddle," Salve said, adding there was more than one explanation to clause 8 of the UASL.

"The matter is complex enough. I did not cheat. May be we were wrong in explaining or there were other reasons. But surely, we did not cheat," he told the court during the final arguments which would continue on January 13.

As per clause 8 of UASL guidelines, "No single company or legal person, either directly or through its associates, shall have 10 per cent or more equity holding in more than one licensee company in the same service area for same service."
During arguments, Salve said there was no deception in the case as there was a doubt in the mind of DoT itself regarding clause 8 which reflcted the ambiguity.

"How come it is said that there was a deception when DoT itself did not understand the meaning of clause properly," he asked.
They are facing charges of alleged conspiracy and
cheating in bagging the 2G spectrum licences in 2008. All the accused have denied the allegations levelled against them.
ETHL had earlier argued in the court that there was no "misrepresentation" by LTL for acquiring the radio waves.
It had argued that CBI's allegations regarding alleged violation of a clause of UASL guidelines by LTL were based on "wrong interpretation" of the provision by the agency.
CBI had earlier alleged in the court that Essar Group was "effectively controlling" LTL which had "fraudulently and dishonestly" misrepresented facts before the DoT to acquire 2G spectrum licences.

It had claimed that the entire funding in this case was by Essar Group of companies and restructuring of firms was done to conceal the fact that this group controlled LTL.