CBI on Thursday told a Delhi court that promoters of Essar Group and Loop Telecom resorted to false and dishonest impression to procure 2G spectrum thereby violating Unified Access Services Licences (UASL) guidelines.

The arguments on framing of charges against Essar Group promoters Ravikant and Anshuman Ruia and Loop Telecom promoters Kiran and I.P. Khaitan in the 2G spectrum scam case commenced on Thursday.

"The basic case of the prosecution (CBI) is that they (accused) have violated clause 8 of the UASL guidelines and false and dishonest impression (made by them) is the crux of the matter," Special public prosecutor U U Lalit told designated CBI Judge O P Saini.

"No single company or legal person, either directly or through its associates, shall have 10 per cent or more equity holding in more than one licensee company in the same service area for the same service, he said.

Lalit said they violated its conditions with "fraudulent and false means and the case of the prosecution is that clause 8 of the UASL guidelines was designed for fair competition and to get rid of the cartelization. This clause has been violated deliberately by making false and dishonest impression.