- December 12th, 2011
- Dafiq Hussein
Over the past couple of weeks we have kept you right up to date with the Indian telecoms scandal, and today there has been yet more news surrounding the controversy.
It has been announced that the CBI, India’s central investigating agency, has charged five more people with fraud and conspiracy in what is turning out to be the country’s biggest corruption scandal.
It has been confirmed by officials that charges have been filed against top executives of Essar and Loop Telecom as part of the alleged telecoms scam. We can once again report that those that have been accused all deny the charges.
The newly accused executives have been named as Essar’s Ravi Ruia and his brother Anshuman Ruia, and Vikas Sharaf, a director of the Essar Group, along with Loop Telecom’s Kiran Khaitan and IP Khaitan.
It has also been reported that the new charges against the two firms will not be heard by the CBI court that will try the former telecoms minister, A Raja, and the other 13 people already under investigation.
So far, only Mr Raja, former Telecoms Secretary, Siddhartha Behura and RK Chandolia, who was private secretary to Mr Raja, have been denied bail.
Loop Telecom, last year, was said to suppress facts whilst showing that their authorised share capital was much less than required and they also did not have telecoms as the main object clause in its memorandum of association. These were the flaws found by the government auditor amongst numerous others. One wonders what the main object clause of a telecoms corporation was…cheap calls abroad perhaps? Somehow this is doubtful.
This ongoing telecoms scandal has significantly damaged the reputation of the Indian government, which has, in the past, been through numerous cases of corruption and scandal.
Furthermore, this latest news does not come as such a surprise and could be the first of many other cases that will see individuals linked to the Indian telecoms industry charged with fraud and conspiracy.