The police on Thursday linked a key ally of the ruling Congress party to a multi-billion greenback telecoms scam, dealing a recent blow to a government already crippled by corruption scandals.

A police lawyer told a court corporations linked to a telecoms firm beneath investigation for purchasing mobile licences at unfairly low-cost costs had paid two.14 billion rupees ($47 million) to a TV channel run by the Dravida Munnetra Kazhagam (DMK), that helps the ruling coalition maintain its slim majority in parliament.

The main opposition Bharatiya Janata Party, that had brought parliament to a standstill demanding a research into India's biggest corruption scandal, has said Prime Minister Manmohan Singh's reliance on the DMK prevented him from quickly probing the case.

The latest court documents come back on a daily basis when the govt appeared near agreeing to a broad, cross-party investigation within the scandal, paving the method for parliament to resume as traditional on Feb. twenty eight for a session which will see discussions on the budget.

The scam doesn't threaten the survival of the govt, however it's tarnished Singh's name and rattled investors in Asia's third largest economy.

While scrambling to manage the fallout from the scandal, one amongst the various throughout the Congress' second term, the govt is additionally distracted from policymaking, additional delaying crucial economic reforms such gap up the retail and money sectors to foreign investors.

Court documents filed by the Central Bureau of Investigation, and seen by Reuters, showed that a corporation linked to Shahid Balwa, the vice chairman of a joint venture between an area firm and Abu Dhabi's Etisalat, had given the money to a TV station what was linked to Andimuthu Raja, the disgraced telecoms minister who was sacked over the scandal.

Authorities have arrested Raja, a DMK member, and Balwa in reference to the scandal, within which the govt is speculated to have lost the maximum amount $39 billion within the award of second-general telecoms licences in 2008.

"There was a transaction of concerning two.14 billion rupees from Cineyug Films to Kalaignar TV within the year 2009," the court documents said.

The document said Kalaignar TV, that is controlled by the DMK, was linked to Raja which the money was given to Cineyug by corporations controlled by Balwa and his relatives

Balwa's laywer, Vivek Aggrawal, told the court the money was associated with a deal Cineyug was considering with Kalaignar TV.

"At the last moment our talks fizzled out. This cash has been came back," he said. DMK officers declined to comment.

Separately, the Supreme Court advised on Thursday a special court attempt all cases associated with the telecoms scandal. the govt has 2 weeks to retort to the suggestion.

(Additional reporting by Devidutta Tripathy; Editing by Krittivas Mukherjee and Miral Fahmy)