CBI to approach AG for fresh opinion following differences

New Delhi, Sep 25 (PTI) Central Bureau of Investigation
(CBI) will approach Attorney General of India G E Vahanvati
for fresh opinion after its legal department differed with the
agency's findings on cross-holding of shares of Essar in Loop
Telecom in connection with the 2G scam, contending there is no
ground for a case against it.
Sources said the agency's Department of Prosecution
(DoP) opinion is similar to the one given by the Indian
Corporate Affairs Ministry.
CBI had earlier submitted its findings on cross-holding
of shares of Essar in Loop Telecom to its legal wing for
opinion following differences in probe between it and
Corporate Affairs Ministry which said the Ruias-led group held
only 2.15 per cent stake in Loop Telecom and not over 10 per
cent as alleged when 2G licence was granted.
CBI has claimed so far that the cross-holding of shares
of Essar in the Loop Telecom was higher than the prescribed 10
per cent, a charge denied by both the companies.
"The DoP has opined that there is no scope for case
against Essar on the issue of having more than permissible
stake in Loop Telecom. Their opinion is same as Corporate
Affairs Ministry," a source said.
The Registrar of Companies (Mumbai) had said, "The Essar
Group, directly or indirectly, held only 2.15 per cent of Loop
Telecom as on September 03,2007 i.e. the date on which the
application was made to DoT for UAS licence".
The RoC letter also said that the documents of the
company do not substantiate "Associate" relationship between
"Essar Group and Khaitan Group" as alleged.
The CBI has been contesting the claims of Essar and
Reliance saying that both the companies held more than 10 per
cent of shares in Loop and Swan when the spectrum was
allocated to them, a charge rebutted by both the companies.