CBI quizzes Essar CEO on 2G scam

The Central Bureau of Investigation (CBI) on Thursday questioned Essar Group Chief Executive Officer (CEO) Prashant Ruia in connection to the 2G spectrum allocation scam.

According to reports, Ruia was asked to clarify if Loop Telecom, which has violated telecom laws, is a front company Essar.

Ruia was supposed to face the CBI a second time on Wednesday. But the CEO sought more time on personal grounds, said sources.

CBI alleged that Essar has more than 10% stake in Loop, as against the Indian telecom laws. However, Ruia had earlier claimed that the company?s stake during applying for 2G licences was 2.15%.

Loop Telecom was granted 2G licences in January 2008 by A Raja, the then Telecom Minister.

In perhaps the biggest scam in Independent India, allegedly masterminded by Raja, telecoms spectrum was given away at throwaway prices in 2008 causing a potential revenue loss of up to Rs 1.76 lakh crore.