The CBI’s crackdown on corruption has moved into high gear, with charges against two high profile people and the arrest of another. On Monday the agency announced it had charged both former telecom minister A. Raja and current Member of Parliament K. Kanimozhi in connection with the 2G scandal. The two politicians along with corporate executives were charged with handling bribes. Both Raja and Kanimozhi are members of the DMK party, which is allied to the Congress.
The CBI has also gone after a member of the Congress party in connection with yet another scandal. It arrested Suresh Kalmadi, the former chairman of the Commonwealth Games organizing committee. The CBI accuses him of favouring certain bids for contracts to run last year’s games.
In corporate, Maruti Suzuki’s profit growth has beaten expectations. On Monday it reported its fourth quarter profit grew 0.6% to Rs660 crore. Meanwhile, the company’s revenues jumped 20% to Rs9,863 crore. Maruti said higher input costs and currency fluctuations ate into its profits, as did higher royalty payments to parent company Suzuki. Shares of the company rose1.53% to 1326.55 on a day overall markets fell.
Switching to IT, Tata Consultancy Services says it expects to be able to charge its customers more in this fiscal. Managing director N. Chandrasekaran said he expected the firm’s pricing power to improve, but cautioned that pressure on margins would remain. Chandrasekaran added that with currency swings and rising salaries, he’d be happy just keeping margins at TCS stable. Stocks of the company rose 0.51% on the BSE to1197.70.