Loop Telecom which is under DoT scanner as well as against whom the Ministry of Corporate Affairs (MCA) has suggested that its licence be taken back over alleged breach of regulations, has said that the Essar Group have no management control over it.

“Neither does the Essar Group has substantial equity in Loop Telecom (LTPL), nor does it control any of its (Loop’s) parent companies — BPL Communications or Santa Trading (STPL),” said Loop in a communication to DoT.

On the issue of Essar Group subscribing to non-convertible debentures of Rs 1,592 crore in Santa Trading, Loop said, "As of relevant date (at the time of issuing licences), the Essar Group owed the Khaitans about Rs 1,359 crore. Therefore, the question of any benefit flowing from the Essar Group to the Khaitan Group does not arise.” It added that Santa Trading had invested Rs 2,951 crore in debt securities of Essar Group companies.

Even the Ruias of the Essar Group issued an explanation over the issue as Shashi Ruia said that it did not hold more than 10% in Loop Telecom.

The MCA however in its probe had pointed out that while the Essar Group did not have a direct stake in Loop Telecom, investments were routed through other companies where the Group had stake.