New Delhi, India was unsuccessful to obtain critical anticorruption law through its Parliament in a confrontational late-night conference Thursday.

The result was a huge embarrassment to the authorities after the government has promised to talk about the concern, which has been frightening foreign investors, impeding the growth of the economy and inviting groups of protesters to the streets.

Activist, Anna Hazare, together with her supporters conducts a rite at the time when a prayer ceremony was held for his health in the northern Indian city of Allabahad Thursday. Prime Minister Manmohan Singh had promised to propose a bill to develop a federal corruption watchdog towards the end of this year after public protests over invasive graft destabilized this summer.

On Thursday, the Trinamool Congress, an alliance that has exposed a lot of government initiatives in 2011, examined New Delhi's efforts. The congress refused to back the New Delhi's version of the legislation in the upper chamber of the Parliament, indicating it is against the language that seemed to force the country's influential states to abide by the central government's lead in establishing the watchdog agency.

The daylong discussion was dismissed at midnight without any vote while legislators yelled at one another. India's economic growth went down by 7%. Foreign investments were seriously affected by the high inflation and increasing financial deficit, which made the rupee Asia's lowest and worst-performing major currency in 2011.

For the meantime, the government was able to acquire adequate support from alliance partners to submit reforms required by foreign investors like allowing foreign investments in multi-brand retail. As an alternative, its response to indicators of economic disorder has been to pursue via huge social-spending projects, including a food-security policy that will spend the state billions of dollars and additional pressure funds.

Mr. Singh's government was also disturbed by a chain of corruption scandals including the imprisonment of a party head involved with graft-ridden Commonwealth Games in New Delhi last 2010. The leader was also a part of an auction of telephone licenses that happened in 2008 at lower than market prices. The auction has lost the state billions of dollars in proceeds.