2G case: SC to examine Loop telecom's plea for settlement

The Supreme Court today agreed to examine a plea by Loop Telecom Ltd (LTL) and Essar Group Director Vikas Saraf, who are facing trial in a case arising out of the 2G scam probe, seeking to refer the matter to Lok Adalat for settlement.

A bench of Justices J S Khehar and Arun Mishra refused to issue notice to the parties and asked the CBI special prosecutor to argue on the issue whether the matter could be referred to Lok Adalat.

Lok Adalat is an alternative dispute resolution mechanism by which the parties involved in civil and compoundable criminal cases try to arrive at a compromise to settle a case.

If the concerned parties do not arrive at a compromise, the matter is remanded back to the court for disposal.

Senior advocate Abhishek Manu Singhvi appearing for LTL had argued that the company was facing trial for the alleged offence under section 420 (cheating) read with 120-B (criminal conspiracy) and these offences are compoundable.

As per provisions of the Code of Criminal Procedure (CrPC), offence under section 420(cheating) of the IPC is compoundable if both the complainant and the accused arrive at a mutual consent.

Singhvi said that Department of Telecom was not opposed to the settlement, but only the CBI was opposed to it.

CBI's special public prosecutor Anand Grover opposed the plea, saying the arguments in the case was over, trial is finished and only judgement in the case remains.

The bench posted the matter for October 18 and earmarked time for the counsels of LTL and CBI to argue on the issue.

Essar Group promoters Ravi Ruia and Anshuman Ruia, Loop Telecom promoters Kiran Khaitan, her husband I P Khaitan and Essar Group Director (Strategy and Planning) Vikash Saraf are facing trial in the case along with three firms -- LTL, Loop Mobile India Ltd and Essar Tele Holding Ltd.

All of them have denied the charges levelled by CBI.

CBI had filed the charge sheet against them alleging they had cheated DoT by using Loop Telecom as a "front" to secure 2G licences in 2008.

On March 27, 2014, a special CBI court had dismissed a plea by LTL seeking directions for referring to Lok Adalat a case arising out of the 2G scam probe, saying prima facie there were "no chances of settlement" and the case has "wider ramifications".