MCA not to reopen Essar-Loop case: Moily

The Ministry of Corporate Affairs has asserted that it will not reopen the Essar-Loop cross-shareholding case as one cannot "twist a law according to convenience of somebody".

"There is no question of our reopening. How can I reopen unless the law is changed... It functions according to the letter and spirit of the law," Corporate Affairs Minister Veerappa Moily told reporters yesterday when asked about reports of a conflict between the CBI and the Ministry of Corporate Affairs (MCA) on the issue.

The CBI, which is probing the 2G spectrum scam, has been saying that Essar held more than 10% of the shares in Loop Telecom when the spectrum was allocated to it, a charge rebutted by the company.

"... You cannot twist a law according to convenience of somebody," Moily said, adding that "there is a certainty and it is not open to anybody's interpretation according to his own expediency and convenience".

The MCA had earlier said that Essar held only a 2.15% stake in new telecom licencee Loop Telecom, which is well within the cross-holding norms.

The Registrar of Companies (Mumbai) had said, "The Essar Group, directly or indirectly, held only 2.15% of Loop Telecom as on September 3, 2007, i.e. the date on which the application was made to the DoT for UAS licence."

The RoC letter had also said that the documents of the company did not substantiate an "Associate" relationship between "Essar Group and Khaitan Group", as alleged.