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India telecom corruption probe questioning begins | |
(about 9 hours later) | |
An Indian parliamentary panel has begun its questioning on the controversial award of telecoms licences. | |
Corporate lobbyist Niira Radia was the first to appear for the hearing in the Indian capital, Delhi. | |
Two of the country's biggest tycoons, Ratan Tata and Reliance's Anil Ambani, are due to appear later in the day. | |
Police say that in 2007-08, when India issued 122 new telecoms licences, several rules were violated and bribes were paid to favour certain firms. | Police say that in 2007-08, when India issued 122 new telecoms licences, several rules were violated and bribes were paid to favour certain firms. |
On Saturday, a former minister was charged in connection with the sale. | On Saturday, a former minister was charged in connection with the sale. |
Andimuthu Raja, who was telecoms minister at the time of the auction, is charged with conspiracy, forgery and fraud. | Andimuthu Raja, who was telecoms minister at the time of the auction, is charged with conspiracy, forgery and fraud. |
The unfolding story has shaken both government and business establishments. | The unfolding story has shaken both government and business establishments. |
Several of the licences were issued to firms with no experience in the telecoms sector in a process described by an auditor's report as lacking transparency and "undertaken in an arbitrary, unfair and inequitable manner". | Several of the licences were issued to firms with no experience in the telecoms sector in a process described by an auditor's report as lacking transparency and "undertaken in an arbitrary, unfair and inequitable manner". |
'Bribes' | 'Bribes' |
It said some licences went to companies that were ineligible, or had suppressed relevant facts, and cost $39bn in lost revenue | It said some licences went to companies that were ineligible, or had suppressed relevant facts, and cost $39bn in lost revenue |
Police have accused Mr Raja of having taken bribes from two firms which are now the local joint venture partners of Telenor and Etisalat. | Police have accused Mr Raja of having taken bribes from two firms which are now the local joint venture partners of Telenor and Etisalat. |
The telecoms ministry is considering whether to cancel some 85 licences which the audit report says were issued to firms which were ineligible for them. | The telecoms ministry is considering whether to cancel some 85 licences which the audit report says were issued to firms which were ineligible for them. |
Many of India's biggest business names have already been questioned, including billionaires Anil Ambani, chairman of Reliance ADA group, and Prashant Ruia, chief executive of Essar Group. | Many of India's biggest business names have already been questioned, including billionaires Anil Ambani, chairman of Reliance ADA group, and Prashant Ruia, chief executive of Essar Group. |
Mr Raja denies wrongdoing. Last year he was forced to resign over the issue. | Mr Raja denies wrongdoing. Last year he was forced to resign over the issue. |
India has the world's fastest growing mobile market, with about half a billion subscribers to date. | India has the world's fastest growing mobile market, with about half a billion subscribers to date. |