2G scam: Ruias, Khaitans asked to appear before court on February 22

Essar promoters Ravi Ruia and Anshuman Ruia and IP Khaitan and Kiran Khaitan, the promoters of Loop Telecom, have been ordered to appear in the Delhi court handling the trial of the telecom scam on 22 February.  The group of four was meant to be present in court today, but lawyers for their companies said that summons issued to them had been sent to the wrong address.   

They say the summons to appear in court should have been sent not to the Delhi homes but their official residences in Dubai - the four promoters of loop and Essar are NRIs or non-resident Indians.

Their companies have been accused by the Central Bureau of Investigation (CBI) of criminal conspiracy; Essar allegedly used Loop as a front in 2008 to acquire more licenses and spectrum than legally permissible.

The telecom scam centres on whether some of India's biggest companies conspired with politicians and bureaucrats to buy mobile network licenses and spectrum or airwaves as throwaway prices.
Lawyers defending the two companies named in the chargesheet argued that the CBI, which is probing the case, did not follow the proper procedure while issuing the summons. The law clearly lays down that the summons should be sent to the place where the person resides, they said.

The CBI counsel, however, said that the lawyers' presence in court showed that the summons were properly served. The respondents were simply being evasive, he said. He maintained that the promoters had given their Delhi addresses to the officer who was investigating the case. This was mentioned in the statements they had recorded as well, he argued.

The CBI alleges that in 2008, when A Raja, now in jail, was Telecom Minister, Essar used Loop as a proxy. Guidelines forbid a telecom from owning more than 10% stake in another operator that services the same area. In 2008, Essar had a 33% stake in Vodafone, and owned a substantial chunk of Loop, says the CBI.

Representatives for both companies had confirmed earlier this month that the promoters are currently in Dubai, and say there is no attempt to dodge the legal proceedings against them. CBI sources, however, say the agency may ask for their passports to be cancelled.

A Loop statement said:

CBI’s action of pasting summons in India in presence of media was clearly uncalled for. Khaitans are NRIs. (There is) No question of evading summons served in accordance with law. Enough proof of Khaitans residing in Dubai has been provided. Loop continues to state it is not a part of the 2G scam. As confirmed in the chargesheet and by CBI lawyer UU Lalit. The case is over interpretation of a Clause 8 of the UASL guideline which is at best a civil matter. Loop denies violation of any nature and reiterates that it has fully complied with all requirements processes and norms.