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Indian telecoms minister quits over scandal

November 16, 2010 00:00:00


Indian Prime Minister Manmohan Singh is to make a statement to MPs about an alleged telecoms scandal that prompted a minister's resignation Sunday, reports BBC.
Telecommunications minister A Raja quit over claims that licences were undersold to mobile phone firms.
He said he was leaving "to avoid embarrassment to the government", and denied wrongdoing.
Mr Raja's political party DMK is one of the largest partners in India's ruling Congress-led coalition.
He is accused of issuing 2G licences in 2008 on a "first-come, first-served" basis instead of auctioning them, costing the government billions of dollars in lost revenue.
Critics said the low return was underscored when India's auction in May of 3G bandwidth for mobile phone services ended up reaping $15bn, twice the sum expected.
Opposition parties threatened to disrupt parliamentary proceedings on Monday unless the government agrees to a joint inquiry into the matter.
Following his resignation, Mr Raja said in televised remarks outside the home of the prime minister on Sunday: "I will prove my innocence, I did everything in accordance with the law.
He presided over the world's fastest growing mobile market; there are about half a billion mobile phone subscribers in India.
The Hindu nationalist Bharatiya Janata Party (BJP), which had been clamouring for Mr Raja's dismissal, called his departure a "victory for democracy".
Senior BJP leader Ravi Shankar Prasad labelled the 2G licenses sale the "mother of all scams" and said Mr Raja should be prosecuted.
Last week, two senior Congress party members resigned over separate corruption allegations.

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