No misrepresentation by Loop to bag 2G licence: ETHL to court

Essar Tele Holding Ltd (ETHL), which is facing charges of conspiracy and cheating to bag the 2G spectrum licences, today told a special court that there was no "misrepresentation" by Loop Telecom Ltd (LTL) for acquiring the radio waves.
ETHL said CBI's allegations regarding alleged violation of a clause of Unified Access Services Licences (UASL) guidelines by LTL was based on a "wrong interpretation" of the provision by the agency.
Essar Group promoters Ravi Ruia and Anshuman Ruia, Loop Telecom promoters, Kiran Khaitan, her husband I P Khaitan and Essar Group Director (Strategy and Planning) Vikash Saraf are facing trial in the case arising out of the 2G scam probe, along with three telecom firms--LTL, Loop Mobile India Ltd and ETHL.

Senior advocate Harish Salve, who appeared for ETHL, today argued before Special CBI Judge O P Saini that although the probe agency has investigated this case the Department of Telecommunications (DoT) has said that they are not a party to it and they have also contended before the court that they have nothing to do with the matter.
"When we (LTL) had applied for compounding, DoT had come before this court and had said that they are not a party to it and they cannot say anything," he said.
"We are in a very peculiar situation. CBI has investigated the matter but DoT is saying they have nothing to do in this."

Regarding CBI's allegation on violation of clause 8 of the UASL guidelines, Salve argued that the whole case of deception was hanging on a clause, "the meaning of which we are still struggling to find."

"If you meant it differently and I understood it differently, there is no deception," he said during the final arguments which would continue tomorrow.
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."

Salve further said, "There is no question of deception in this case as the basic interpretation of clause 8 is wrong."
During the arguments, he said no misrepresentation was made out as DoT was aware of all the facts before licences were granted to LTL.
"DoT knew all the facts and if facts were within their knowledge, there is no cheating or inducement," he said, adding, "CBI and DoT may have different views on clause 8 (of UASL guidelines)."
He argued that clause 8 needs a "comprehensive reading". "If I understood in a particular sense, am I cheating? CBI is inventing and interpreting (the clause) in a manner which DoT never thought," he said.

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