The Mint Report for 12 December 2011

The Mint Report for 12 December 2011

The 2G scandal, which saw its third chargesheet filed being filed on Monday. The CBI booked Ravi Ruia, the vice-chairman of Essar Group along with Anshuman Ruia, who is a director. Others booked include Kiran Khaitan, who is the sister of Essar’s promoters and her husband I.P Khaitan. The fifth person named is Vikas Saraf of the Essar Group. Together they’re charged with violating clause 8 of the universal access service license guidelines.

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India’s industrial output has fallen for the first time since the Lehman Brothers collapse and financial crisis of 2008. New figures show the index of industrial production plunged 5.1% in October. The numbers were far worse than most expectations. And they come just days after the finance ministry cut its growth forecast for the fiscal year to a range of 7.25 to 7.75%. The fall in the IIP could also be a sign the Reserve Bank’s rate hikes have taken a toll on growth. RBI has increased rates 13 times since March of last year, totaling 3.75 percentage points of hikes.

And finally, Indian markets plummeted on Monday, with investors taking cover after the worse than expected IIP figures. The Sensex tumbled 343 points to 15,870. And the Nifty lost 102 to 4,765.