Essar Oil hits 1-year low as CBI books top execs in 2G case

Essar Group companies continued their fall on Tuesday after the CBI booked the company’s top executives Ravi Ruia and Anshuman Ruia in relation with the 2G scam

The CBI on Monday filed the third and final chargesheet in the 2G spectrum allocation case against the promoters of Loop telecom. The CBI contends that Loop telecom was controlled by Essar group through the latter’s stake in Vodafone.

Among the Essar group companies- Essar Oil, the flagship company of the Ruia’s has hit a 52-week low of Rs 58, while Essar Shipping stock was down 2 percent at Rs22 and Essar Ports is down 4.8 percent at Rs 57.90

While the Law Ministry and the CBI have given the companies concerned a clean-chit in the 2G case, the CBI confirmed that the charges relate only to interpretation of Clause 8 violation of the Unified Access Service Licence (UASL) guidelines, whence no company could compete for more spectrum than specified under the UASL guidelines.

Essar group has denied all charges and said it will take legal recourse.

The CBI chargesheet named Ravi Ruia and Anshuman Ruia of the Essar group and IP Khaitan and Kiran Khaitan, the promoters of Loop Telecom. They are charged with conspiracy, forgery and cheating. The CBI’s chargesheet is based on its findings that the Department of Telecom (DoT) wasn’t informed that Loop and Essar were not associate companies.

Loop and Essar were associate companies, until Loop managed to secure spectrum licences.

Other than the Ruias and the Khaitans, the chargesheet also names Vikas Saraf, of Loop Telecom.

Unlike the previous two chargesheet, the current chargesheet does not name any government official.

The maximum punishment that the accused can be awarded is seven years but without a formal complaint from the DoT supporting the CBI’s claims, the current chargesheet is seen as a weak.

There are reports that Special Court will decide on December 17 its further course of action, that is, whether to take cognisance of the chargesheet or to assign it to some other court.