Telecom executives in India remain behind bars

An Indian superior court today rejected bail to five company executives charged in a multi-billion dollar telecom corruption scandal that has rocked political and business establishments in the country.

Shares in the three firms linked to the executives fell after Judge Ajit Bharihoke read out his order in the courtroom of the Delhi High Court.

Sanjay Chandra, the managing director of Telenor’s India partner Unitech; Vinod Goenka, chairman of Etisalat’s India partner DB Group; and three executives from Reliance ADA Group have been held in jail since April 20, after a lower court had denied them bail.

They are among 14 individuals and three companies charged with rigging a 2007/08 grant of lucrative telecom licences. The scandal may have cost state coffers as much as US$39 billion in lost revenue, a sum equivalent to the country’s defence budget.

Etisalat said in February that it had no involvement in the corruption scandal.

Bharihoke said the accused were highly influential persons who could try to influence witnesses, especially those in their companies, if released on bail.

Police have already arrested former telecom minister Andimuthu Raja, a member of government ally DMK party.