The agency argued that the entire <g data-gr-id="44">funding in this case</g> was by Essar Group of companies and restructuring of firms was done to conceal the fact that the Group was controlling LTL.
Advancing final arguments in the case in which promoters of Essar Group, Loop Telecom Ltd and others are facing trial, special public prosecutor Anand Grover said that "fraudulent misrepresentation" by LTL before the DoT constituted alleged offence punishable under section 420 (cheating) of the IPC.
"There are series of transactions which shows that before, after and during the conspiracy, Loop Telecom was controlled by Essar Tele Holding Ltd (ETHL). They (LTL) fraudulently and dishonestly misrepresented the fact before DoT to get the 2G spectrum licences," Grover told Special CBI Judge O P Saini.
He also said that clause 8 of the Unified Access Services Licences (UASL) guidelines <g data-gr-id="39">was</g> also violated by accused firm. As per clause 8 of UASL guidelines, "No single company or legal person, either directly or through its associates, shall have 10 per cent or more equity holding in more than one licensee company in the same service area for same service."
"From December 2007 to January 2008, clause 8 certificate was repeatedly submitted by LTL in the DoT... Restructuring of companies was done to conceal the fact that Essar Group was controlling LTL," Grover said.
He also argued that various "sham transactions" took place in the entire process. Grover concluded his arguments on Tuesday after which the court fixed the matter for September 21 for hearing final arguments of the defence counsel.
Essar Group promoters Ravi Ruia and Anshuman Ruia, Loop Telecom promoters, Kiran Khaitan, her husband I P Khaitan and Essar Group Director (Strategy and Planning) Vikash Saraf are facing trial in the case, along with three telecom firms -- LTL, Loop Mobile India Ltd and ETHL.
The five individuals accused, who are out on bail, have denied the charges levelled by CBI.
During the arguments, Grover also said that employees of Essar Group were holding key positions in Loop Telecom.
The agency had earlier argued in the court that LTL was a "front company" for ETHL and violation of clause 8 of the UASL guidelines by the accused firms was a crucial factor.
CBI had <g data-gr-id="37">chargesheeted</g> the accused on December 12, 2011, alleging they had <g data-gr-id="38">cheated</g> the DoT by using Loop Telecom as a "front" to secure 2G licences in 2008.
On May 25, 2012, the court had framed charges against all the accused under section 120-B (criminal conspiracy) read with section 420 (cheating) of the IPC, while the substantive charge of cheating was made out only against Saraf.
The recording of prosecution evidence in the case started on July 26, 2012. The court had recorded
the statements of 95 CBI witnesses, running into 1,056 pages, while the accused examined 12 witnesses in their defence.