If we accepted the basic premise that the sanctity of existing contracts had to be maintained, this problem would not have arisen. But arbitrariness is what characterises government interventions in the market, leading to litigation and delays. The 2G auction has again been challenged, and though the court has allowed the auction to go ahead, it has put the caveat that contracts as a result of the auction can not be put in place till it decides the matter.
Litigations are hugely draining for business, less because of actual legal expenses, and more because of uncertainties and delays they cause. Most businesses finally give up and stop investing in such markets as India is at present.
Real sufferer of course is our prosperity and jobs.
Read the whole report here.
