Loop Telecom has confirmed this in its affidavit to Supreme Court. This news came after an investigation by the federal investigators that Ruia brothers of the Essar Group, through a maze of companies, have more than 10% in this mobile phone company. This is not acceptable as it is not allowed by law.

The affidavit adds that the Dubai-based Khaitan family owns the remaining 98.5% stake. Kiran Khaitan is the sister of the Ruia brothers.

Recently, Essar Group CEO Prashant Ruia was probed by the Central Bureau of Investigation in relation to the agency’s ongoing scrutiny into the 2G spectrum scam. Loop also added that in September 2007, Essar had only 2.5% stake in it when the mobile phone company had applied for pan-India mobile permits

“We have no plans to increase our stake in Loop in the future,” Prashant Ruia told ET while adding that the Essar Group was a net debtor to the Khaitan family.

Loop Telecom, in its affidavit in the apex court, has also denied charges by the CAG that it was an undue beneficiary of 2G spectrum allocation by A Raja. The CAG said that Loop’s application for mobile permits in September 3, 2007, was done with an altered MOA and added that the company engaged in deliberate misrepresentation of facts.

From www.businessreviewindia.in