The court dismissed a petition accusing Home Minister
Palaniappan Chidambaram of signing off on the sale of telecoms licenses at
below-market prices that may have cost the government up to $36 billion in lost
revenues.
Prime Minister Manmohan Singh's Congress party, struggling
against repeated accusations of graft and incompetence, faces elections
starting next week in a key northern state that was once its stronghold and
whose voters could set the tone for 2014 national polls.
The latest ruling can still be challenged in a higher court.
The accusations against Chidambaram relate to his position
as finance minister in 2008 at the time of the corruption-tainted telecoms
bidding.
It is the biggest of several scandals to have emerged during
Singh's second term, denting India's image as an investment destination and
heightening concerns over policy when Asia's third largest economy is slowing.
The Supreme Court on Thursday ordered 122 telecoms licenses
issued under that 2008 sale be revoked.
Two ministers, including former telecoms minister Andimuthu
Raja who presided over the 2008 grant process, have resigned. Raja is in jail
awaiting trial.
Saturday's court ruling also removes one major political
weapon from the opposition, which has been unrelenting in its attacks on the
government over corruption. For most of last year, opposition parties have
repeatedly blocked policy going through parliament.
A major next test will be the 2012\13 budget for which the
government is hoping to get parliamentary approval in mid-March.
