Loop Telecom has ruled out any violation of telecom licensing norms and clarified that it has submitted the certified shareholding structure to the Telecom Department.

The firm, in a letter to Telecom Secretary Siddartha Behura, said, "Since the relevant date (date of application), the indirect equity holding of the Essar Group in Loop Telecom has at no point exceeded 9.99 per cent as permitted under the licensing guidelines."

However, the firm, all set to roll out GSM services in six telecom circles, declined to comment over the matter and said that it is the conspiracy of its competitors to cause uncertainty among vendors and financiers. It said that besides less than 9.99 per cent equity by the Essar Group, the remaining equity has been retained by the Khaitan Group through firms Santa Trading and BPL Communications.

Loop Telecom said in a statement, “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).”

It should be recalled that the Ministry of Corporate Affairs has directed the DoT to examine financial anomalies in transactions between the Essar Group and the holding companies of Loop Telecom, leading to violation of license guidelines.