Concerns regarding stakeholders in the firm are back to haunt Loop Telecom. While the earlier allegations pertained to links of Essar Group with the firm, Business Line reports that the Ministry of Corporate Affairs (MCA) will now investigate over alleged licence violation against the firm.

The move follows directive by The Serious Fraud Investigating Office (SFIO) to MCA to conduct such an investigation. Two firms Aidtel and Indtel which have stake in Loop are alleged to have not disclosed the nationality of their owners.

The company like earlier refutes these allegations and maintains that it has already provided certification from auditors that the shareholding pattern is as per DoT guidelines.

Loop Telecom has soft launched its services in Tamil Nadu, Orissa, Kerala and Karnataka. But it has always remained under cloud of controversy.

The MCA had earlier in April this year asked DoT to review the grant of licence to the firm. It had then expressed concerns over Santa Trading owning stake in the firm.