- Essar pleased with deferment as jurisdiction issue is coming up in Hon’ble Delhi HC on 16th of February 2012.
- CBI today confirmed in the court that there is no PC Act and no involvement of any public servant, admits agency was in a quandary regarding jurisdiction
- Charge-sheet relates only to alleged violation of Clause 8 of the UASL guidelines and nothing to do with the 2G scam
- Guideline violation is contractual issue, only a civil matter, no justification for any criminal action. No such action taken against any other telecom company under similar allegations
- Fresh summons to be issued
- Essar is and has always been in full compliance with Clause 8 terms of the guidelines
Mumbai / Delhi, January 27, 2012:
The Special Court today adjourned the matter to the 22nd of February 2012. Essar is pleased with deferment since the jurisdiction issue is coming up in the Hon’ble Delhi High Court on the 16th of February 2012.
Essar is contesting the jurisdiction of the Hon’ble Special court to proceed with this matter as there are no corruption charges against it and it is not part of the 2G scam.
The Special Public Prosecutor representing the Central Bureau of Investigation in court today said that there are no charges against Essar under the Prevention of Corruption Act and no mala fide of public officials and further said that the investigating machinery was itself in a quandary as regards jurisdiction.
While fresh summons are to be issued Essar reiterates it is a law abiding corporate and has cooperated fully with the investigation in the case. The due legal process of serving summons to overseas residents is well documented in law and by the government and CBI despite having information about the residential status of Ruias have failed to inform the court and follow the due process
The only charge alleged against Essar pertains to the interpretation of Clause 8 of the UASL guidelines which at best is a contract issue and a civil matter and no criminal action was warranted. No such action has been taken against any other telecom company under similar allegations.
Essar has always been in full compliance with the UASL guidelines and other license agreements. Essar’s shareholding in Loop was only 2.15%, well below the threshold prescribed in Clause 8. This has been confirmed time and again by various government authorities.
The UASL guidelines themselves prescribe the consequences of any breach, which is a monetary penalty or at worst a cancellation of license. There is absolutely no justification for launch of criminal proceedings on this basis of an alleged breach of a contract. This should have been dealt with as a civil matter.
Essar would take all measures at its disposal to protect its reputation, good will and business interests, while cooperating fully with the legal process within the framework of law
Manish Kedia, Sr.VP Corporate Affairs, Essar Group,+91 98197 30092, firstname.lastname@example.org
B.Ganesh Pai, VP- Corporate Communications, Essar Group, +91 98197 30225, email@example.com
Parikshit Kaul, GM, Corporate Communications (New Delhi), Essar Group,+91 98735 70816, firstname.lastname@example.org
Rabin Ghosh, DGM, Corporate Communications, Essar Group, + 91 99301 36268, email@example.com