Loop Telecom fined Rs 384 crore

Aug 18 2011, 09:11 IST
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SummaryThe ED, probing the 2G scam, slapped a fine of Rs 384 crore on Loop Mobile and Loop Telecom.

The Enforcement Directorate (ED), probing the 2G spectrum scam, on Tuesday issued show-cause notices and slapped a fine of Rs 384 crore on Loop Mobile and Loop Telecom for alleged foreign exchange violations.

This is the second such notice issued to telecom companies under the scanner. The first notice under Foreign Exchange Management Act (FEMA) was issued against Swan Telecom and Etisalat DB (formerly known as Swan Telecom) for Rs 7,260 crore in July.

While Loop Telecom has been fined Rs 184 crore, the fine in case of Loop Mobile is Rs 200 crore. Earlier, Loop Mobile was fined for Rs 431 crore which has now been reduced to Rs 200 crore.

According to a top ED official, “Loop has been issued notices for not intimating the RBI after receiving the money through FDI entities. The second violation committed by them was regarding not issuing shares within specified time period.”

Sources said the Essar group, which is under the scanner for using Loop Telecom as its front company while applying for UAS license, is under investigation.

“We are trying to establish the alleged payment of Rs 1,800 crore to Mauritius-based Khaitans. We are being assisted by the CBI, which is planning to file a status report before the SC by the end of this month. It is also likely to file a ‘supplementary report’ before the trial court in September,” the official said.

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