Essar stake in Loop within limit: MCA

In a move that could be a breather to the Essar Group,the corporate affairs ministry has communicated to the telecom ministry that the Ruias-led group held only 2.15 per cent stake in Loop Telecom at the time of obtaining 2G licence.

The CBI has been investigating as to whether Loop Telecom was an associate of Essar,when obtaining the nation-wide UASL licence and 2G spectrum in 2007.

As per substantial equity clause of the UASL licence,a company can not hold more than 10 per cent in two operating licencees in same circle. The DoT had written to MCA in January this year asking them for categorical views/comments on whether the substantial equity clause has been violated in the case of Loop Telecom.