2G scam: Ruias, Khaitans asked to appear before court on February 22

Fresh summons have been issued to Essar promoters Ravi Ruia and Anshuman Ruia and IP Khaitan and Kiran Khaitan, the promoters of Loop Telecom, asking them to appear before the Delhi court handling the trial of the telecom scam on 22 February. The need for fresh summons arose after the four accused ignored an earlier summon to appear today. 

Vikas Saraf, Director (Strategy and Planning), Essar, was represented by his lawyer, who sought four weeks' time for his client stating that Mr Saraf was posted abroad. But the court ruled that he would have to appear on the same day as the other four accused.  Fresh summons in his case were not required.

Earlier, Lawyers who are representing their companies, though not the individuals themselves, argued the accused had not been served summons at their official residences in Dubai - the four promoters of loop and Essar are NRIs or non-resident Indians.


Their companies have been accused by the Central Bureau of Investigation (CBI) of criminal conspiracy; Essar allegedly used Loop as a front in 2008 to acquire more licenses and spectrum than legally permissible.

The telecom scam centres on whether some of India's biggest companies conspired with politicians and bureaucrats to buy mobile network licenses and spectrum or airwaves as throwaway prices.

Lawyers defending the two companies named in the chargesheet argued that the CBI, which is probing the case, did not follow the proper procedure while issuing the summons. The law clearly lays down that the summons should be sent to the place where the person resides, they said.

The CBI counsel, however, said that the lawyers' presence in court showed that the summons were properly served. The respondents were simply being evasive, he said. He maintained that the promoters had given their Delhi addresses to the officer who was investigating the case. This was mentioned in the statements they had recorded as well, he argued.
However, the court stated in its order that the fresh summons will be served at the Delhi and Mumbai addresses (not Dubai). The court also observed that summons can be served via a phone call or an SMS too.


Lawyers for Loop and Essar also pointed out that their clients have asked the Delhi High Court to decide whether Judge OP Saini's court has the jurisdiction to hear this case.


The CBI alleges that in 2008, when A Raja, now in jail, was Telecom Minister, Essar used Loop as a proxy. Guidelines forbid a telecom from owning more than 10% stake in another operator that services the same area. In 2008, Essar had a 33% stake in Vodafone, and owned a substantial chunk of Loop, says the CBI.

Representatives for both companies had confirmed earlier this month that the promoters are currently in Dubai, and say there is no attempt to dodge the legal proceedings against them. CBI sources, however, say the agency may ask for their passports to be cancelled.