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HomeNewsIndia NewsIndian court paves way for trials in telecom scam

Indian court paves way for trials in telecom scam

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AN INDIAN court ruled on Saturday (October 22) that there was sufficient evidence for former telecom minister A Raja to stand trial over an alleged multi-billion-dollar mobile phone licensing fraud.

The scandal cost India up to $40bn (£25.07bn) in lost revenues, according to the national auditor, and has badly dented the image of the Congress-led government headed by Prime Minister Dr Manmohan Singh.

Judge OP Saini, at a special court in New Delhi, said there was enough “prima facie” evidence against Raja and the 13 others accused in the so-called “2G scam” for them to be tried.

Charges against Raja and the other accused include criminal breach of trust, which carries a maximum life penalty, and criminal conspiracy.

Raja, a low-caste politician from a regional party in Dr Singh’s national coalition, is suspected of rigging rules for the sale of second generation (2G) mobile licences in 2008 to favour some firms in return for kick-backs.

Others alleged of wrongdoing include Raja’s top aides, national lawmaker Kanimozhi Karunanidhi, several senior telecom executives and government officials.

The trial will start in November, the Hindu Business Line newspaper said on its website. It could be a Pandora’s box for the coalition because many of the players who got spectrum are seen as having links to the government, analysts say.

The formal laying of charges culminates months of court hearings involving the national police agency and the accused to establish whether there was enough evidence.

Special Central Bureau of Investigation Prosecutor UU Lalit had argued that every one of the accused “was part of the conspiracy”.

All the accused say they are innocent of any wrongdoing in the scandal, which police say led to losses of $6.7bn (£4.19bn), in stark contrast to the much higher figure released by the audit office.

The “2G scam” – said to be potentially the biggest in independent India’s history – has led to intense pressure on Dr Singh and cast a shadow over India’s fast-growing telecom sector.

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