Third chargesheet may get delayed, CBI caught in Loop-Essar tangle

The third chargesheet in the 2G spectrum allocation scam case is likely to get delayed as the Central Bureau of Investigation (CBI) is still deliberating on the technical aspects of the association between Loop and Essar. The third chargesheet was scheduled to come out by the first week of July. The first two chargesheets were issued in April and May, respectively.

CBI is seeking clarification from the ministry of corporate affairs and the Department of Telecom (DoT) regarding Loop Telecom's eligibility to apply for the spectrum licence in 2007-08. In 2009, the ministry had observed that Loop was ineligible for the licence.

However, in another report earlier this year, the ministry gave the company a clean chit saying Essar holds an insignificant stake in Loop Telecom, which makes the latter eligible for the telecom licence.

CBI has not received the report directly from the ministry but through petitions filed by Loop and Essar. The agency will clarify the basis of the reports with the ministry.

Telecom licence allocation to Loop three years ago has been under the scanner over the allegation that Essar had a substantial holding in the company and also controlled its operations. Essar, which had a separate telecom business in a joint venture with Vodafone, has denied these charges. According to DoT rules, a telecom company cannot hold more than 10 per cent in a second entity in the same business.

The CBI is investigations into the matter on the lines that Loop and Essar are associate companies and, hence, were not eligible to apply for licence in the same circle. The replies to the Letter Rogatory sent to Mauritius in this regard, is also being examined.

The agency will present the status report on the progress of the 2G probe to the Supreme Court on July 6. It will have to explain the delay in the third chargesheet and the total loss caused to the exchequer.

Meanwhile, the ongoing preliminary inquiry into the Aircel-Maxis case is likely to get over by August 2011, after which CBI would file an additional first information report based on the findings, CBI sources said.