24 July, 2021

Carrots? Here’s A Stick!

The PM, Raja, TRAI, telecom firms... the apex court lets no one off the hook

Carrots? Here’s A Stick!

The Supreme Court’s stinging judgement against the government in the 2G spectrum scam case is an extremely significant attempt by the country’s highest court to curb the corrupt nexus between business and politics and will further damage the UPA’s already battered credibility. The court’s decision will not merely have far-reaching consequences on India’s political economy, it has highlighted the huge price that Manmohan Singh himself and the government he heads are now having to pay for turning a blind eye to corruption in the form of the misallocation and under-pricing of electro-magnetic spectrum.

In the short run, the SC decision will adversely impact many major telecom players, including Tata Teleservices, Idea, Aircel, Vodafone, S Tel, among others. But in particular, the companies who benefited from the misallocation of spectrum: Swan, Loop and Unitech. The chances of some of these keeping their shutters open are slim. Rarely has a court in India come down so hard on corporate entities, supposed to...

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