The chief executive of India's Essar Group, one of India's biggest business houses, was called for questioning by investigators looking into a widening telecoms corruption probe that has battered the government. Prashant Ruia, whose company has interests ranging from energy to steel and telecoms, appeared at the federal Central Bureau of Investigation (CBI) headquarters on Thursday, CBI spokesman R.K. Gaur told Reuters.
Ruia was questioned a day after billionaire Anil Ambani, chairman of Reliance Communications and one of India's highest-profile businessmen, was questioned at CBI headquarters. Investigators are looking into a telecoms licensing scandal that may have cost India as much as $39 billion in lost revenue. Essar owns a less-than 10 percent stake in Loop Telecom, a small carrier that was among the companies asked to defend their licences after a state auditor said they were not eligible for the licences they were awarded in 2008.
Unlisted Essar, which is also Vodafone's partner in India's No 3 mobile carrier, Vodafone Essar, was not accused of wrongdoing in an auditor's report into the allocation of 2G spectrum. The 2G scandal, one of several roiling India, has reached the highest levels of Indian business and politics, and led to the sacking and arrest of the former telecoms minister and the arrest of a telecoms company executive. "Essar is in full compliance with DoT (Department of Telecommunications) license norms and all other applicable laws. As and when any information is sought Essar will provide the same to the authorities," the Indian conglomerate said in a statement.
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