Former Communications Minister A.Raja has been remanded to judicial custody 14 days and have been sent to Tihar Jail .

Big business czars are being questioned by the CBI – Reliance boss Anil Ambani questioned by CBI in connection with the 2G scam. Will Tata be the next?

After much exposure of the scam and causing further damage to the Government, it has decided to cancel the Antrix-Devas agreement, which was to hand over S-Band Spectrum to a private company Devas as also sending two satellites in to orbit for the commercial purpose of the private company to grab huge profit. The CAG has calculated the estimated loss to the government at about Rs. 2 lakh crore. This was a serious security concern also.

Now that the government has decided to cancel it, certain questions remain:

Why an agreement made in 2005, concerning the security of the nation as also huge loss to the nation not come to the notice of the government till it was raised by the CAG?

Devas Management says that the agreement has been signed with the knowledge of the PMO, foreign companies connected with the deal has met the Prime Minister and that the deal has been made with the knowledge of all concerned in the government. Then why no action was taken to terminate the agreement during these five years?

The Government has only cancelled the agreement. What about the actions against the culprits?

The government will have to answer these questions to the nation. The opposition will seriously raise these issues in the Parliament also.

The Press Conference with the TV channels by the Prime Minister Dr. Manmohan Singh yesterday was eagerly waited for by the people. But nothing unexpected was there. I am giving below some comments made by party leaders / news papers on this press conference.

“Unpersuasive Interaction”- Hindu Editorial

” Manmohan’s interaction has betrayed his helplessness” – Nitin Gadkari, BJP President

“Miles to go Dr. Singh” “A pledge to end corruption must start with resolve to reform political funding.” – Editorial, Economic Times

” PM mentioned the word ‘coalition’ at least 16 times, often to explain that compromises were unavoidable in a coalition government. He described the scams as  ‘aberrations’, but acknowledged there was an ethical and governance deficit”. Times of India

“On two vital issues confronting the nation and the people, that is corruption and price rise, the PM has virtually thrown up his hand saying nothing much could be done. This is very unfortunate.” Sitaram Yechury, CPI(M).

” Why did the government not stop the loot by its own minister while allocating the spectrum with prior information?” – Gurudas Dasgupta, CPI

” The one claim that Dr. Singh made which he need not have, and which his critics did not miss the opportunity to attack him on that, was about the media demoralising the nation by its excessive focus on corruption in public life.”- Editorial, Business Standard.

The government has at last has conceded for constituting a Joint Parliament Committee on the 2G scam. After resisting the formation  of the JAC for more than three months and wasting the entire winter session of the Parliament,  the government has come to its senses and agreed to form the JAC. This was indicated by the PM Manmohan Singh during his meeting with the BJP leaders. During the Press Conference earlier in the day, the Prime Minister indicated the same thing. The announcement is expected to come before the start of the Budget session of the Parliament which is to start from 21st February 2011.

In the meantime other opposition parties including CPI(M) were contacted by the congress leaders on this issue.

Now the question arises. Why the decision for JAC was not taken earlier, which could have saved the Winter session of Parliament. The fact is that the government has agreed now  only because there was no other way for the government. It is  a success of the opposition and the people of the country.

Prime Minister Dr. Manmohan Singh met the Press and answered questions for about 70 minutes on many subjects. Full details are awaited. But on the 2G spectrum deal he has stated that every thing is done by Raja. But the fact also came out that he did not intervene since Minister, TRAI etc. were all of the same oinion. Is it believable?

On the question of Antrix-Dewas agreement, it is reported that he kept silence.

Rest tomorrow.

Many of the private telecom companies who got 2G spectrum licence have been interrogated by CBI. They included Unitech, DB Reality, Loop Telecom and S-Tel. More companies are expected to be questioned. The above companies have made windfall profits by selling stakes to foreign companies after getting the spectrum at high prices.

The claim of  ‘zero loss’ for government in the 2G scam by Communications Minister Kapil Sibal has been contradicted by the CBI Director, A.P.Singh, in his evidence before the Public Accounts Committee headed by Murali Manohar Joshi of BJP. On continued questions from the committee members, CBI Director told that CBI has pegged the loss at Rs. 40,000 – 50,000 crore. This is completely against the statement of Kapil Sibal that there is ‘zero loss’ in the 2G spectrum allottment. Kapil Sibal had rubbished the report of the CAG which stated that there is a loss of Rs. 1.76 lakh crore to the Government in the 2G allottment.

CBI Director may be called again by PAC for further evidence. There is chance that former communications Minister Raja also may called to give evidence in the scam in which he is number one culprit.

INTUC President G.Sanjeeva Reddy has stood firm in his participation in the 23d February Parliament March despite heavy pressure from the government and top brass of the Congress. The Parliament March is being organised by the Central Trade Unions, including INTUC. INTUC which was keeping away from the Central TU agitations for a long time has started taking active interest in the same for some time past. It has participated in the 7th September strike called by all the Central Trade Unions.

In the Press Conference held yesterday by the CTUs Dr. Sanjeeva Reddy stated ” The government has forgotten its duty. We have to remind the government and tell them that the aam aadmi is suffering”. He continued in an aggressive stance ” Workers are rising against governments all over the world and matters would get worse here if the government ignored the demands being made by the unions”.

All the Central Trade Unions and All India Federations including BSNLEU are making preparations for a massive Parliament March on 23rd. It will certainly be a historic march against the anti-worker policies of the government.

It is good news. The Minister for Labour & Employment Mallikarjun Kharge has assured the members of the Central Board of Trustees of the Employees Provident Fund organisation (EFPO) that he was discussing the issue of 9.5% interest for EPF with the Finance Minister  and hopes it will be settled soon.It may be recalled that the Finance Ministry was objecting to the increase in EPF interest from 8.5 to 9.5% for 2010-11 decided by the EPFO.Private employers have also been protesting that 9.5% can not be given.

The EPFO stated that there is sufficient fund to give 9.5% interest. Central Trade Unions have been continuously demanding to increase the interest to 9.5%.

Let us hope that the unnecessary difference be sorted out and the increased interest rate be implemented. CITU has already strongly demanded the same.

What was expected has happened. China has replaced Japan as the world’s second largest economy. US still holds the first position. Japan has been holding the second position after United States for the last 42 years. The present GDP for China is $5.8 trillion compared to Japan’s $5.47trillion. China has been growing strong and many analysts opine that China may overtake US as the number one economy by 2025