Loop Telecom may be in for hard time as the DoT is now mulling referring the controversy surrounding the ownership details of the firm back to the ministry of Corporate Affairs (MCA).

There are allegations that Essar Group may have indirect control in the firm.

In an earlier review, the MCA had pointed out that the Ruias of the Essar Group may have used their stake in Santa Trading Pvt Ltd to gain management control in the firm. Santa Trading has stake in BPL Communications which ultimately owns Loop Telecom.

The MCA however stated that Santa Trading does not holds more than 9.9% stake in Loop. The DoT now feels that this observation of the MCA is not conclusive since one cannot figure out if the stake holding pattern results in any regulatory violations. The DoT for this reason wants the MCA to once again look into the details of the firm from the ownership perspective.

The DoT wants to be sure at its end before issuing a show-cause notice to the firm over alleged violations.

The RBI and CBI had earlier given clean chit to the new entrant over issues related to their respective areas of concern.