The Mint Report for 16 November 2010

The Mint Report for 16 November 2010

The UPA government is under attack over the way it gave out licenses for second generation spectrum in early 2008. On Tuesday a report from the Comptroller Auditor General criticized it over alleged irregularities in the licensing process. It added that the government’s allocation of 2-G spectrum cost India Rs1.76 trillion. The report came less than two days after telecoms minister A. Raja resigned from his post over allegations of graft in the sale of the spectrum.

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And the government’s troubles didn’t end with the CAG report. The Supreme Court joined the chorus of criticism on Tuesday, targeting the prime minister himself. In an observation, it questioned the “inaction" on the part of Manmohan Singh after former parliamentarian Subramanian Swamy wrote to him about the sale of second generation spectrum.

Indian markets plummeted on Tuesday after fears of more monetary tightening in China. The Sensex fell 445 points to close at 19,865. And the Nifty lost 133 to end at 5989.