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Crony Capitalists in India face tough times as Judiciary cracks down

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The Economic Liberalization of India in the 1990s ushered in a new era of not only high growth as its industries and enterpreneurs were unshackled from the chains of License Raj but also an era of Crony Capitalism.The erstwhile business barons who maintained their fiefdoms through manipulation of licenses,now shifted their focus elsewhere.With new sectors of the opening up and growing exponentially unscrupulous promoters had the chance to mint billions.The bursting of the 2G Telecom Scam has bust the cozy Crony Capitalism Relationship.India’s Supreme Court reposing lack of faith in the investigative powers of the government has personally taken charge of the prosecution.With powerful ministers,bureaucrats and billionaire businessmen involved,only India’s Supreme Court has the chance to bring the guilty to justice.

DB Realty,one of the biggest beneficiaries of the Real Estate Boom in India now faces the music.This company has found itself in the center of the scam.It is charged with making hundreds of millions of dollars by buying a telecom license cheaply and flipping it for huge profits.With charges of this publicly listed firm having equity holdings from the mafia,DB Realty portrays the worst of India’s Crony Capitalism.The lines between India’s Politicians,Businessmen and Bureaucrats have been blurring.Even petty lobbyists like Nira Radia now command wealth measured in hundreds of crores.It remains to be seen how far the guilty are punished and whether the real ringleaders are brought to book.Note the 2G Telecom Scam has already implicated some of the biggest corporate houses of the country like Unitech,ADAG Group.Other big conglomerates like Videocon,Essar were also involved in winning the licenses.

Special court for 2G case trial mooted

Considering the magnitude of the 2G spectrum scam and the higher-ups involved in it, the Supreme Court on Thursday asked the Centre to consider setting up a special court to try the case expeditiously.

A Bench of Justices G.S. Singhvi and A.K. Ganguly, after perusing the status reports submitted by the Central Bureau of Investigation (CBI) and the Enforcement Directorate, made it clear that the CBI should go after the beneficiaries of the 2G spectrum scam if there was prima facie evidence of their role and involvement.

The status reports explained the four arrests so far made by the CBI, including that of the former Communications Minister A. Raja.

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Abhishek Shah

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