The Mint Report for 08 December 2010

The Mint Report for 08 December 2010

Ratan Tata has denied his company was involved in any way in the 2G spectrum scandal. On Thursday, he went public with an open letter addressed to Rajya Sabha MP Rajeev Chandrasekhar. Tata wrote that neither former telecom minister A Raja, nor anyone else in his ministry did any favours for Tata Teleservices.

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Earlier, Chandrasekhar had claimed Tata Teleservices had effectively jumped the line to get 2G spectrum. But Tata’s letter in turn says the allegations are part of an attempt to attack Prime Minister Manmohan Singh and the Congress party. Rajeev Chandrasekhar himself was once a telecom entrepreneur. He’s now an independent MP backed by the BJP. Incidentally, Tata’s letter comes just a day after the CBI raided the homes of Raja, who’s at the heart of the controversy.

Meanwhile, India’s current telecom minister Kapil Sibal announced the government was appointing a one-man committee to investigate spectrum allocation policies within the telecom ministry. That man is Shivraj Patil, a former Supreme Court judge. He’ll investigate all spectrum allocations made since 2001.

And finally, it was carnage on the bourses on Thursday, with the Sensex plummeting the most it has in half a year. The index lost 454 points to close at 19,242. And the Nifty plunged 137 to finish at 5,766. Thursday’s losses were caused by issues ranging from poor corporate governance to rising interest rates. Analysts expect volatility to continue for the next few weeks.