Respite for Chidambaram in 2G case

"I do not find any sufficient ground for proceeding against Mr. P. Chidambaram. The plea is without any merit and the same is dismissed," the judge said in the 70-point verdict, concluding that Chidambaram was party to only two decisions which "are not per se criminal".

"In the end, Mr P Chidambaram was party to only two decisions, that is, keeping the spectrum prices at 2001 level and dilution of equity by the two companies. These two acts are not per se criminal.

"In the absence of any other incriminating act on his part, it cannot be said that he was prima facie party to the criminal conspiracy. There is no evidence on record that he was acting in pursuit to the criminal conspiracy.." the judgement read.

"I am surprised," was the immediate reaction of Swamy, who expressed his intention of challenging the ruling in a higher court, saying, "If I lose in one court I go and appeal in another court."

In his 2G campaign, which began with letters to Prime Minister Singh in 2008, the early years of the controversial spectrum sale, Sawmy has toiled in legal chambers, writing hundreds of letters and petitions, relentlessly shining a spotlight on an affair the government would rather forget.

"I am not disappointed. No question of disappointment when we are in a battle royal fighting corruption," the publicity-hungry former minister and disgraced Harvard professor who is exalted by his Hindu nationalist followers as a crusading hero, said.

"I have a very, very strong case that both Mr Chidambaram and Mr Raja made the decisions (on 2G licencing)," Sawmy said, referring to former telecoms minister A Raja who is currently lodged in Tihar Jail after being named as a key accused by the Central Bureau of Investigation (CBI).

Basking in the perceived victory, the Congress was seen conveying that its position in the case stood vindicated with spokesperson Manish Tewari saying there is nothing for the government to take moral responsibility on the issue.

The new telecoms minister Kapil Sibal, an experienced lawyer and Congress party stalwart said, "We were expecting this. The allegations had political motives."

"You should not have TV debates before hearing on such issues. Institutions and political credibility are being destroyed in this process," he told a TV channel, criticising the media.

Sibal also ridiculed Swamy saying the latter after high court and Supreme Court will appeal to God.

Congress leader and minister Ambika Soni said the Swamy´s petitions are aimed at keeping himself politically relevant.

The Bharatiya Janata Party (BJP) also reacted saying it is the verdict of the first court only.

"In matter of 2G often the lower court verdicts were overruled by the upper courts," said BJP leader Ravi Shankar Prasad, adding that he would make detailed comment after going into the details of the judgement.

He said that the Supreme Court verdict that quashed 122 telecom licences in the 2G case cannot be ignored.

The judgement was crucial for the scam-embroiled United Progressive Alliance (UPA) government since making Chidambaram a co-accused would have been seen as a blot on not only one of the tallest and erudite leaders of Congress but also Prime Minister Singh, who would have been the next target of opposition.

Swamy´s plea was that the then finance minister during the scam-tainted 2G spectrum allocations be made a co-accused in the case with former telecom minister A Raja.

Swamy argued that documents proved that Chidambaram was as much a party to the decisions on the 2G spectrum allocations as Raja, now in jail, and he has a many to answer for.

Swamy contended that Chidambaram knew about everything and was the "bade ustad" (big fish) while Raja was "chote ustad" (smaller fish).

He said as finance minister it was the job of Chidambaram to supervise Raja in the distribution the licences.

Raja had kept both Chidambaram and the Prime Minister briefed on everything, Swamy said.

He also said national security was compromised by allocating spectrum to companies closely associated with Pakistan.

Swamy contended that Chidambaram had informed the Prime Minister of the prerogative of the finance and telecoms ministers to decide spectrum prices and that it was not possible for Raja to go ahead without the finance ministry blessings.

Chidambaram´s verdict came two days after a landmark Supreme Court verdict in the 2G case.

The apex court on Thursday ordered telecoms licences issued under the scandal-tainted 2008 sale be revoked, delivering a decisive blow against a government that has been grappling to leave behind the fiasco that has roiled the nation for more than a year.

Even though the ruling potentially affects fewer than 5 percent of users in the world´s second biggest cellular market, it applies to 122 licences held by eight operators and risks damaging investor confidence besides turning the heat back on a scam-battered coalition government.

Saying that using a first-come-first-serve policy to allocate national resources like airwaves is dangerous, and designed to benefit any one "with access to power corridors", the court came down on the process that sees former telecoms minister A Raja languish in jail, pending trial.

The scandal over the alleged allocation of telecoms licences at below-market prices, could have lost the treasury up to Rs 1.76 lakh crore, according to the government's auditor, the Comptroller and Auditor General (CAG).

Imposing penalties on violating firms, the apex court on Thursday said the Telecom Regulatory Authority in India (TRAI) must ensure issuance of fresh licences, allowing four months to cancel the licences and issue fresh ones by auction.

Fines were imposed too on the operators.

Uninor has to pay a penalty of Rs 5 crore while Swan Telecom and Tata Telecom will also have to pay the same, media reports said. Loop, S-Tel, Allianz and Sistema Shyam have been fined Rs 50 lakh each.

The licences cancelled by the Supreme Court include 22 of Uninor, 21 of Videocon, 9 of Idea, 21 of Loop, 6 of S-Tel, 21 of Sistema, 3 of Tata Teleservices, 13 of Swan and 2 of Allianz.