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The Republic & the Nehru Years

India · 1958Mundhra scandal topples a Union Finance Minister as AFSPA enters the statute book

India in 1958 paired institution-building with an early accountability test: the Mundhra–LIC affair forced Finance Minister T.T. Krishnamachari to resign after the Chagla Commission inquiry. Parliament enacted AFSPA and the Scientific Policy Resolution was adopted, as a foreign-exchange crisis strained the Second Five Year Plan.

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Key figures

Jawaharlal Nehru — Prime Minister; associated with the Scientific Policy Resolution and the Nehru–Noon Agreement.T.T. Krishnamachari — Union Finance Minister who resigned in February 1958 over the Mundhra scandal.M.C. Chagla — Bombay High Court Chief Justice who led the one-man Mundhra inquiry commission.Feroze Gandhi — Member of Parliament who exposed the LIC–Mundhra investments.Milkha Singh — won athletics gold at the 1958 Commonwealth Games in Cardiff and the 1958 Asian Games in Tokyo.Vinoba Bhave — social reformer awarded the Ramon Magsaysay Award in 1958 for the Bhoodan movement.

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