Trial resumes in 2G scam | delhi | Hindustan Times
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Trial resumes in 2G scam

Former telecom minister A Raja and six business executives will appear in court on Friday to face trial in the 2G spectrum scandal that has exposed the nexus between government and industry in one of the world's fastest growing economies.

delhi Updated: Apr 15, 2011 10:56 IST

Former telecom minister A Raja and six business executives will appear in court on Friday to face trial in the 2G spectrum scandal that has exposed the nexus between government and industry in one of the world's fastest growing economies.

The court will rule on the bail applications of officials from the Indian joint ventures of Norway's Telenor, the United Arab Emirates' Etisalat and from India's Reliance ADA group, owned by Anil Ambani, named in the case.
Former minister Andimuthu Raja and several firms are charged with manipulating the grants of telecoms licences, causing a potential loss to the government of $39 billion.

The case is the latest chapter in a series of corruption scandals that have embarrassed the Congress party-led government, which faces a test of strength in major state elections that could redraw India's political landscape.
Most analysts expect the DMK, Raja's party and a key Congress ally in the south, to lose power because of the backlash from the scandal.

The new telecom minister Kapil Sibal could cancel several of the contentious licences issued under Raja, a move that will likely feed investor uncertainty about the stability of government contracts and regulations in India.

Under fire from a resurgent opposition, the corruption saga has sapped the government's strength to push an agenda of economic reforms such as simplifying India's tax code or opening its supermarket to foreign players.