The Central Bureau of Investigation (CBI) has refused to take cognizance of the Trai letter stating that it never recommended auction of spectrum or revision of entry fee for UAS licences. The agency also told the trial court that it will not take cognizance of the law ministry?s definition of ?associate companies? as it never sought such advice and these were correspondences between different government departments.
These submissions were made by the special public prosecutor UU Lalit in response to the demands by the counsels of the accused for putting on record the Trai letter and the law ministry?s report. Lalit said the agency will not take cognizance of these reports and the accused may resort to them to defend themselves.
Specifically on the Trai letter, Lalit said the covering letter was uncalled for as it was not asked by the investigating agency. What was asked for was the report on spectrum valuation between 2001-08. The covering letter is not in consonance with the spectrum report.
On the law ministry?s report on the definition of associate companies, Lalit said, ?The unsolicited letter submitted to CBI by the DoT is communication between the DoT and the law ministry. The investigation on this aspect has been concluded and the charge sheet has been filed?.
The law ministry?s report had said that a company can be an associate of another only if it is a subsidiary and that two firms can be associates of each other if a parent company owns more than 50% stake in both.
It had negated any role of things like control and exchange of funds and personnel.
Based on this it was assumed that the CBI?s case against ADAG-Swan and Essar-Loop being associate companies and therefore were ineligible for UAS licences under clause 8 of the UASL guidelines gets weakened.