New Delhi:
A trial court in Delhi has ruled that Home Minister P Chidambaram will not be held criminally liable for the telecom scam that unfolded in India in 2008 when he was Finance Minister. Judge OP Saini rejected a petition by Subramanian Swamy to make the minister co-accused in the case. "Anybody and everybody associated with a decision in any degree cannot be roped as an accused," the verdict declared. The government exhaled loudly after the verdict. (10 big facts about today's verdict)
"Of course this is a good judgement and it is a relief because unnecessarily somebody was prosecuted. Even in the judgement of the Supreme Court, on the main cases, clearly it was mentioned that the advice of the Finance Minister was not listened to...I welcome the judgement," Union Finance Minister Pranab Mukherjee said.
Mr Chidambaram was at home when the judgement was delivered; he then left for a scheduled trip to Madurai where he did address a public gathering on the Kudankulam row, however, refrained from making any statement on the case. (Kudankulam row: Foreign funds to NGOs being probed, says Chidambaram)
Judge Saini's verdict helps bandage the government's credibility, which has been in free-fall in the last year courtesy a series of financial scandals, led by the telecom scam. The government's moral authority was also dented by the Supreme Court this week, when it cancelled 122 mobile network licenses issued in 2008. The Supreme Court blamed former telecom minister A Raja for the "arbitrary and unlawful" allocation of those licenses. (Chidambaram verdict: What happens next)
Mr Swamy has said that Mr Chidambaram's failure to curb Mr Raja amounts to dereliction of his duty as Finance Minister. "I am not disappointed, it is all part of the game," he said, adding that he will appeal to higher courts against today's decision. "It has become mandatory for me to appeal in the Supreme Court...I will go to the Supreme Court within a month," said Mr Swamy. Perhaps he can eventually appeal to God, Telecom Minister Kapil Sibal said in response. (Am glad Kapil Sibal has started thinking about God: Subramanian Swamy)
Judge Saini has said, "A decision taken by a public servant does not become criminal for simple reason that it has caused loss to the public exchequer or resulted in pecuniary advantage to others. Merely attending meetings and taking decisions therein is not a criminal act...there is no material on record to suggest that Mr. Chidambaram was acting with corrupt or illegal motives or was in abuse of his official position." (Read court order here)
For the BJP, which has led a high-volume campaign for Mr Chidambaram's resignation, the verdict suggests the need for a new strategy. The party's Ravi Shankar Prasad said that the government cannot abandon accountability for the telecom scam, and that the BJP will continue to "boycott" Mr Chidambaram in Parliament. (Watch) In the winter session, the BJP refused to let the Home Minister speak in the House, forcing many adjournments. Arun Shourie, who has served as minister in the BJP-led NDA, said that decision is incorrect. Senior BJP leader Jaswant Singh agreed. "Parliament is not a forum to display your ability for non-speak." Both men said the BJP must use debates in Parliament to challenge the government.
The verdict comes at a crucial time for the Congress. Five states, including Uttar Pradesh, are voting for their next government. Rahul Gandhi's direction of the party's campaign in UP has doubled the stakes for the Congress, adding many points for prestige. The Congress has been attacking Chief Minister Mayawati over corruption. A verdict against Mr Chidambaram would have enervated the party's position.
Mr Raja is in prison for enabling companies who were ineligible to get mobile network licenses at clearance prices. Second-generation or 2G spectrum was thrown in for free. Mr Swamy says that Mr Chidambaram was privy to the decisions that Mr Raja took on issues like the pricing of spectrum. He also says that Mr Chidambaram wrongly allowed two companies who allegedly conspired with Mr Raja - Swan Telecom and Unitech Wireless - to dilute their equity for foreign investors. Norway-based Telenor bought 67% stake in Unitech Wireless; Etisalat from Dubai acquired 45 % stake in Swan. Both companies earned huge profits at the government's expense, according to Mr Swamy. "There is no material on record to show that Mr. P Chidambaram was acting malafide in fixing the price of spectrum at the 2001 level or in permitting dilution of equity by the two companies. These two acts are not per se illegal and there is no further material on record to show any other incriminating act on the part of Mr. P. Chidambaram," today's verdict countered.
Critics of Mr Chidambaram found their case vastly strengthened late last year when a note sent by the Finance Ministry to the Prime Minister's Office was exhumed by a Right to Information application. Written in March last year, the note post-mortemed the events of 2008, and was meant to serve as an inter-department backgrounder. But it made the point that the Finance Ministry should have done more to enforce an auction upon Mr Raja. The Prime Minister was forced to respond that Mr Chidambaram enjoyed his confidence as Finance Minister in 2008, and continues to do so now. But the damage was done.
Mr Chidambaram has in his defence said that he tried at various points to insist that Mr Raja hold an auction to ensure that this scarce resource was sold at market prices.
"Of course this is a good judgement and it is a relief because unnecessarily somebody was prosecuted. Even in the judgement of the Supreme Court, on the main cases, clearly it was mentioned that the advice of the Finance Minister was not listened to...I welcome the judgement," Union Finance Minister Pranab Mukherjee said.
Mr Chidambaram was at home when the judgement was delivered; he then left for a scheduled trip to Madurai where he did address a public gathering on the Kudankulam row, however, refrained from making any statement on the case. (Kudankulam row: Foreign funds to NGOs being probed, says Chidambaram)
Judge Saini's verdict helps bandage the government's credibility, which has been in free-fall in the last year courtesy a series of financial scandals, led by the telecom scam. The government's moral authority was also dented by the Supreme Court this week, when it cancelled 122 mobile network licenses issued in 2008. The Supreme Court blamed former telecom minister A Raja for the "arbitrary and unlawful" allocation of those licenses. (Chidambaram verdict: What happens next)
Mr Swamy has said that Mr Chidambaram's failure to curb Mr Raja amounts to dereliction of his duty as Finance Minister. "I am not disappointed, it is all part of the game," he said, adding that he will appeal to higher courts against today's decision. "It has become mandatory for me to appeal in the Supreme Court...I will go to the Supreme Court within a month," said Mr Swamy. Perhaps he can eventually appeal to God, Telecom Minister Kapil Sibal said in response. (Am glad Kapil Sibal has started thinking about God: Subramanian Swamy)
Judge Saini has said, "A decision taken by a public servant does not become criminal for simple reason that it has caused loss to the public exchequer or resulted in pecuniary advantage to others. Merely attending meetings and taking decisions therein is not a criminal act...there is no material on record to suggest that Mr. Chidambaram was acting with corrupt or illegal motives or was in abuse of his official position." (Read court order here)
For the BJP, which has led a high-volume campaign for Mr Chidambaram's resignation, the verdict suggests the need for a new strategy. The party's Ravi Shankar Prasad said that the government cannot abandon accountability for the telecom scam, and that the BJP will continue to "boycott" Mr Chidambaram in Parliament. (Watch) In the winter session, the BJP refused to let the Home Minister speak in the House, forcing many adjournments. Arun Shourie, who has served as minister in the BJP-led NDA, said that decision is incorrect. Senior BJP leader Jaswant Singh agreed. "Parliament is not a forum to display your ability for non-speak." Both men said the BJP must use debates in Parliament to challenge the government.
The verdict comes at a crucial time for the Congress. Five states, including Uttar Pradesh, are voting for their next government. Rahul Gandhi's direction of the party's campaign in UP has doubled the stakes for the Congress, adding many points for prestige. The Congress has been attacking Chief Minister Mayawati over corruption. A verdict against Mr Chidambaram would have enervated the party's position.
Mr Raja is in prison for enabling companies who were ineligible to get mobile network licenses at clearance prices. Second-generation or 2G spectrum was thrown in for free. Mr Swamy says that Mr Chidambaram was privy to the decisions that Mr Raja took on issues like the pricing of spectrum. He also says that Mr Chidambaram wrongly allowed two companies who allegedly conspired with Mr Raja - Swan Telecom and Unitech Wireless - to dilute their equity for foreign investors. Norway-based Telenor bought 67% stake in Unitech Wireless; Etisalat from Dubai acquired 45 % stake in Swan. Both companies earned huge profits at the government's expense, according to Mr Swamy. "There is no material on record to show that Mr. P Chidambaram was acting malafide in fixing the price of spectrum at the 2001 level or in permitting dilution of equity by the two companies. These two acts are not per se illegal and there is no further material on record to show any other incriminating act on the part of Mr. P. Chidambaram," today's verdict countered.
Critics of Mr Chidambaram found their case vastly strengthened late last year when a note sent by the Finance Ministry to the Prime Minister's Office was exhumed by a Right to Information application. Written in March last year, the note post-mortemed the events of 2008, and was meant to serve as an inter-department backgrounder. But it made the point that the Finance Ministry should have done more to enforce an auction upon Mr Raja. The Prime Minister was forced to respond that Mr Chidambaram enjoyed his confidence as Finance Minister in 2008, and continues to do so now. But the damage was done.
Mr Chidambaram has in his defence said that he tried at various points to insist that Mr Raja hold an auction to ensure that this scarce resource was sold at market prices.
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