Essar controlled Loop: Senior Essar official before Magistrate

NEW DELHI: Backing CBI's line in the probe into Essar-Loop relationship, a top official of Essar Telecom has said the group was controlling Loop Telecom when it applied for telecom spectrum.

The statement of CFO of Essar Telecom Businss Group Somasundaram Subramaniam, who was the CEO of BPL Mobile (BMCL) which took over Loop Telecom Private Limited, was recorded before the Magistrate on September 9.

In his statement, Subramaniam has said Essar employees used to sign bank documents for Loop as well as extended corporate guarantees to secure funds during the 2G spectrum allocation.

"The financing for the license fee requirements for LTPL were arranged along with bank guarantees by the corporate finance team of Essar led by V G Raghavan who was the Essar group CFO at that time. I was also aware that corporate guarantees were issued for this facility to the Bank by Essar Steel Ltd and Essar Power Ltd," Subramaniam said.

He said in the Board Meeting of Loop, held in July 20007, when it passed the resolution that company will apply for 21 Unified Access Licenses Directors V Ganeshan, Girish Sathe and Madan Mundra were present.

Subramaniam said to the best of his knowledge these three Directors were employees of Essar.