Steal of few Hundred and you're Criminal

Steal a few lakhs and you're a criminal. Steal a few hundred crores and you become an industrialist, rubbing shoulders with the high and mighty of the land. Or so it would seem from finance minister Jaswant Singh's recent statement in the Rajya Sabha that "non-performing assets of Rs 83,000 crore is loot and not debt". As the experiences of Japan and South East Asia have shown, an ailing financial sector can very quickly wreck the entire economy. Indian lenders have long been handicapped by the fact that it is almost impossible to take action against defaulters. This problem is sought to be addressed by the Securitisation and Reconstruction of Financial Assets Bill, which would allow creditors to take control of the debtor's assets and replace the company's management, if need be. The response of some chambers was to seek a distinction between 'wilful' and 'non-wilful' defaulters, though they remained silent when some commentators queried whether companies would themselves apply the same yardstick to customers who failed to pay up. The fact is, this sorry saga of bad debt reflects poorly on some of India's most high-profile companies, as also on their influential friends who conduct corporate battles under the guise of political campaigns. But several Indian companies, from both the Old and New Economy, are widely respected for faithfully adhering to the norms of corporate governance. If they were to openly voice their

Central Bureau of Investigation (CBI). the Minister of Communications & IT. loss and no-loss were put to rest on 2 February 2012 when the Supreme Court of India delivered judgement on a public interest litigation (PIL) which was directly related to the 2G spectrum scam.[2] Similarly Kapil Sibal. however. the loss was pegged at 309845. which they would then use to create 2G spectrum subscriptions for cell phones. that "zero loss" was caused by distributing 2G licenses on first-come-first-served basis. during a press conference. claimed in 2011.5 million (US$4. Indian 2G Spectrum Scam The 2G spectrum scam was a scam involving politicians and government officials in India illegally undercharging mobile telephony companies for frequency allocation licenses.[3] It has to be pointed out. In a chargesheet filed on 2 April 2011 by the investigating agency.[4] . The phrase indicates nothing about whether the sale was a scam.[1] However. The shortfall between the money collected and the money that the law mandated to be collected is estimated to be 1766.7 billion)[2] whereas on 19 August 2011 in a reply to CBI. that "zero loss" can simply mean that frequencies were not sold for less than cost. Telecom Regulatory Authority of India (TRAI) said that the government gained over 30 billion (US$460 million) by giving 2G spectrum. Raja (then minister for communications & IT from 2007 to 2009) the main official accused in the 2G scam case. The Supreme Court declared allotment of spectrum as "unconstitutional and arbitrary" and quashed all the 122 licenses issued in 2008 during tenure of for the Bill.45 billion (US$27 billion). as valued by the Comptroller and Auditor General of India based on 3G and BWA spectrum auction prices in 2010. All the speculations of profit. the exact loss is disputed. it would further enhance their stature — apart from doing the economy a good turn.

Commonwealth Games Scam A number of concerns and controversies surfaced before the 2010 Commonwealth Games in New Delhi."[5] . infrastructural compromise. delays in the construction of main Games' venues. founder of Wipro Technologies. several other problems related to the 2010 Commonwealth Games have been highlighted by Indian investigative agencies and media outlets. The Commonwealth Games was severely criticised by several prominent Indian politicians and social activists because billions of dollars have been spent on the sporting event despite the fact that India has one of the world's largest concentration of poor people.000 people from three large slum clusters in Delhi have been relocated since 2004. We haven’t seen [these] levels of evictions in the last five years since the Emergency."[3] Social and environmental impact Nearly 400. remarked that India faced several socio-economic challenges and "to instead spend on a grand sporting spectacle sounds like we [India] have got our priorities wrong. and exceptionally poor ticket sales before the event. possibility of a terrorist attack. an Indian urban planner with the University of California-Berkeley. said that the 2010 Commonwealth Games have resulted in "an unprecedented increase in the degree. frequency and scale of indiscriminate evictions without proper resettlement. India.[1][2] Additionally. Socio-economic impact Financial costs Azim Premji. Gautam Bhan. these include — serious corruption by officials of the Games' Organising Committee. which received widespread media coverage both in India (the host nation) and internationally.

[16] and inhumane working conditions. Telgi and the Fake Stamp Paper Scam The tentacles of the fake stamp and stamp paper scam. but no action has been initiated on the wider issues raised in the report. and the city has arbitrarily arrested homeless citizens under the "Bombay Prevention of Begging Act 1959". Telgi clearly had a lot of support from other departments and institutions of government that are responsible for the production and sale of high security stamps.In response to a Right to Information (RTI) application filed for study and statements by civil society groups. has penetrated 12 states and is estimated at a whopping Rs 20.000 crore plus. but the lack of serious action suggests that the scamster had mastered the technique of corrupting the system.detailed the social and environmental consequences of the event. The Telgi scam is by no means a case of police corruption and political connivance helping an ingenious crook to set up a fastgrowing dubious business. workers on the site of the main Commonwealth stadium have reportedly been issued with hard hats. Anil Dharker propagated one in his piece in the Hindu in 2003: . Between 1992 and 2002. there was controversy over financial mismanagement. yet most work in open-toed sandals and live in cramped tin tenements in which illnesses are rife. The scam was so big that large myths accreted around this criminal.[13] The High Court of Delhi is presently hearing a public interest petition relating to employers not paying employees for overtime and it has appointed a four-member committee to submit a report on the alleged violations of workers rights. But questions about their involvement are just beginning to be asked.[12][14] During the construction of the Games Village. better known as the Telgi scam.[15] profiteering by the Delhi Development Authority and private real estate companies. better known as the Jaiswal report. Even more shocking is the fact that the Special Investigation Team’s enquiry report.[6] It stated that no tolerance zones for beggars are enforced in Delhi. women workers living and working in the labour camp style work sites. a report by the Housing and Land Rights Network (HLRN) .[12] Furthermore. 12 cases were registered against Telgi relating to counterfeit stamps in Maharashtra alone and 15 cases in other parts of the country. had already asked these questions in November arm of the Habitat International Coalition .

… Telgi’s modus operandi involved washing cancelled stamp papers with chemicals. emerging from comfortable obscurity when the first convictions came in 2006. Salvi pronounced the scamster guilty on seven counts: criminal conspiracy. counterfeiting government stamps and cheating. the second of three sons. was still a child.The father died when Abdul Karim. If he put himself through school selling bananas. Telgi was born in 1956. almost 11 years after the first case against Telgi was registered. he would have done it in the early ’60s. mastermind of perhaps the biggest ever scam the country witnessed in recent history. He was determined to study and supported his own education at a local English medium missionary school by selling vegetables and fruit on trains. The scam fell below the media radar soon after this article was written. special Central Bureau of Investigation (CBI) Judge U. has finally been convicted. He would sell them through his network of front men. Obviously. which would make them look as good as new. Comparing the profits from selling bananas to the monthly charges in an English medium school in the ’60s will tell you how improbable this story is. How Satyam Scam Unfolded They are also looking into their e-mails and phone records over the last one month. On January 17. 2006.S. At that time Frontline rand a long article which is still worth reading: ABDUL KARIM TELGI. However. The judgment was really no surprise. . This registers a distinct hit on my bullshit meter. a man who defrauded the exchequer of thousands of crores of rupees by selling fake stamp paper could not possibly be allowed to walk free. the severity of the punishment seems hardly the issue in the Telgi case. among others.

000 employees. it fell to 21. It is reported that Satyam has 53. The big takeaway from the Registrar of Companies report is that the top management of Satyam . How they did it Investigators are now reportedly coming across evidence of insider trading by the promoters even before the scandal broke.6 per cent which fell a year later to just over 19 per cent. his share was down to 22. Raju had nearly 23 per cent shares.538 shares while the then CEO Ram Mynampati sold 700. The reports say Satyam books have been overstated by Rs 5. By December that year. Who sold what? Raju has claimed that no one else in the company was privy to the fudging of accounts.50. BSE figures show a number of senior people in the company.000 shares plus 2. 11 per cent in 2006.000 to Rs 6. . including Raju and CFO Vadlamani were reportedly selling Satyam's shares over the last 22 quarters.110 crore to tide over the crisis and Rs 500 crore to pay the January salary to employees. But exclusive information with CNN-IBN suggests insider trading.4 per cent. Meanwhile a search is also on for a new CEO for the embattled IT firm. In June 2001.000 crore. leading to an inflated stock price that helped the top management make money. By September 2008 Raju's share was just 8. Raju's holding was 16 per cent which fell to 14 per cent in 2005. Network-18 learns that the board is looking at a 10-day time period to pick someone to head the company. In September 2002.27 per cent.sold shares ahead of the Big Bang revelation by Raju. and needs Rs 1. There is now also a question mark on the number of employees Satyam has.Andhra chief minister Y S R Reddy reiterated his government did not flout any rule in awarding the Hyderabad metro rail project to Maytas. In 2007 it was in single digit. In 2004. BSE figure also show Vadlamani sold 92.the directors and senior officials .000 ADRs. But how deep and how wide is the rot inside India's fourth largest software company? Sources tell CNN-IBN the company is facing serious money crunch. Over 40 applications have come in so far.

which said AB Bofors would supply the Indian Army with 410 155-mm howitzers.Apart from these. Sources say they include one Kiran Cavale who reportedly sold 400. The first whiff about the scandal came on April 16. The Haubits FH-77 gun manufactured by AB Bofors of Sweden. 1987 when a Swedish Radio broadcast claimed that AB Bofors had paid kickbacks to key Indian policy makers and top defence officials to secure the deal.000 shares and 10. between New Delhi and the Swedish metals and armaments major.000 ADRs. A deal was signed on March 24. Sitting in her Geneva office. 1986. the Indian government in the mid 1980s decided to go ahead with the induction of bigger calibre 155 mm howitzers.000 ADRs and one Rajan Nagarajan who reportedly sold 430. News about this broadcast was carried in the Indian media and the Rajiv Gandhi government issued a prompt denial. a company which was once owned by Alfred Nobel. was selected.The amount was a significant $285 million (about Rs 1500 crore) for a pre-liberalisation India. other senior officials also reportedly sold large number of shares.000 shares and 70. The Hindu's correspondent Chitra Subramaniam was in an advanced stage of pregnancy when she heard about the broadcast and the newspaper's then . Bofors Scandal Aiming to replace the old field guns and artillery in the hands of the Army. An option to license-produce 1000 more guns was also included in the deal.

He added that the Swedish Police had no evidence of Rajiv Gandhi or Amitabh Bachchan receiving kickbacks in the Bofors scam. What followed thereafter remains unrivalled in the annals of Indian investigative journalism. 2012 when Swedish police chief Sten Lindstrom revealed that he was the Deep Throat in the Bofors case and the key source that Chitra Subramaniam turned to. Fodder Scam . the same court cleared the Hindujas of involvement. Bofors agent Win Chadha. In the subsequent years. 1987. the Malaysian authorities arrested Quattrocchi. 2004. former defence secretary Bhatnagar and Win Chadha passed away.Editor N Ram asked her to follow it up. the Hindujas issued a statement saying the funds received by them from AB Bofors had nothing to do with the howitzer order. Letters were sent out to Malaysia and UAE seeking the arrest of Quattrocchi. The Bofors case once again garnered top news spots on April 24. Delhi High Court exonerated Rajiv Gandhi in the case and in 2005. two of the accused. In 2001. the name of the UK-based Hinduja brothers cropped up but in 2000. It submitted its report two years later. ugust 6. On February 4. But he secured bail but was asked to stay in the country. Towards the end of 2000.

There is also allegation on Nitish Kumar and Shivanand Tiwari of receiving 1 crore and 60 lakh Rupees respectively from S. as well as former Chief Minister. The scam The scam had its origins in small-scale embezzlement by some government employees submitting false expense reports.[9] . chārā ghoṭālā) was a corruption scandal that involved 940 crore (equivalent to 20 billion or US$300 million in 2013) from the government treasury of the eastern Indian state of Bihar. acted on information to conduct a raid on the offices of the animal husbandry department in the town of Chaibasa in the district under his authority. the deputy commissioner of West Singhbhum district.[1] Among those implicated in the theft and arrested were then Chief Minister of Bihar. Jagannath Mishra. The documents his team seized. was the earliest chief minister to be accused of knowing involvement in the scam.The Fodder Scam (Hindi: the embezzlement of about . until a full-fledged mafia had formed. and went public . who served his first stint as the chief minister of Bihar in the mid-1970s. Lalu Prasad Yadav. Amit Khare. Sinha.[2][3] The scandal led to the end of Lalu's reign as Chief Minister. then chief minister of Bihar. such as politicians and businesses. which grew in magnitude and drew additional elements. On 27 January 1996. over time.N. was a prime accused in the fodder scam investigation.[6] Jagannath Mishra. Exposure and investigation Laloo Prasad Yadav.

and the other officials tendered an unqualified apology to the Legislative Council. named the then Bihar Chief Minister of having implicit involvement in the scam. the CBI unearthed linkages to the serving chief minister of Bihar. U. Allegations were also made that several of the probe committee members were themselves complicit in the scam. which could proceed similar to a contempt of court proceeding and result in stalling the investigation or even prosecution of the named CBI officials. he even mentioned how earlier governments too were taking advantage of a shoddy system.[16] As the investigation proceeded.[14] There were fears that state police. an Associate Director of Public Affairs. The news of fodder scam was first broken out by Indian journalist Ravi S Jha.[16] However. is currently working with anti-corruption crusader and good governance promoter Rajeev Chandrasekhar.with. the regional CBI director. Harish Khandelwal. who was one of the accused was found dead on train tracks with a note that stated that he was being coerced by the CBI to turn witness for the . which is under federal rather than state jurisdiction. made a formal request to the federally-appointed Governor of Bihar to prosecute Laloo (who is often referred by his first name in Indian media). the Bihar High Court ordered that the case be handed over to the CBI. [11] Laloo ordered the constitution of a committee to probe the irregularities.[14] A public interest litigation was filed with the Supreme Court of India. a businessman. who working with the Asian Age then in Calcutta. Jha not only found out widespread involvement of Bihar government machinery in the scam. on March 1996. and the probe committee would not investigate the case vigorously. which is accountable to the state administration. Laloo Prasad Yadav and.[16] Some legislators of the Bihar Legislative Council responded by claiming the court had been misinformed by the CBI and initiating a privilege motion to discuss possible action against senior figures in the regional headquarters of the CBI. Biswas. Jha.[15] An inquiry by the CBI began and. which led to the court's involvement.[14] and based on the ultimate directions issued by the supreme court. the Rajya Sabha Member of Parliament. Based on evidence collected by him from Chaibasa. the CBI filed a submission to the High Court that Bihar officials and legislators were blocking access to documents that could reveal the existence of a politician-official-business mafia nexus at work. and demands were raised to transfer the case to the Central Bureau of Investigation (CBI). within days. N. and the CBI probe continued. conclusively indicated large-scale embezzlement by an organised mafia of officials and business people. where top government officials along with the ministers were flouting norms to make money illegally. on 10 May 1997.[17] On the same day. the privilege motion was dropped.

on the charges of spotfixing. said. Investigation details Sreesanth was arrested from his friend's house. kept the appeal to the governor in place.[4] The Board for Control of Cricket in India (BCCI) suspended the players till further investigation."The BCCI is shocked and saddened at the recent developments. IPL Scam The 2013 Indian Premier League spot fixing and betting case arose when the Delhi Police arrested three cricketers. The three represented the Rajasthan Royals in the 2013 Indian Premier League. The BCCI has zero tolerance to corruption. involved in the spot fixing under the direction of the bookies.[13][17] An Income Tax Investigation also blamed Laloo for the scam. Ajit Chandila and Ankeet Chavan. Mumbai Police arrested Vindu Dara Singh and Gurunath Meiyappan for alleged betting and having links with bookies.[2] BCCI secretary Sanjay Jagdale.[1] In a separate case."[2] On . Sreesanth. U. The IPL Governing Council has met and decided that the cricketers found involved will be dealt with severely. The police also claimed that Chandila had tried to get other players.[17] The CBI rejected the charge and its local director.[3] Delhi police have claimed that Sreesanth and Chavan have confessed being involved in the spot fixing. including Chavan. N. We will offer all cooperation to the Delhi police and all other authorities in their investigations in this matter.[2] Rajasthan Royals suspended the contracts of the three players until the investigation is complete. whereas Chandila and Chavan were arrested from their team hotel in Mumbai.prosecution. Biswas.

. Subsequently. The exposure of Mehta's modus operandi led banks to start demanding their money back. the Harshad Mehta security scandal also became the flavor of Bollywood with Sameer Hanchate's film Gafla. Chandila and Chavan and 23 other people arrested by them in the spot-fixing scandal were going to be slapped with the provisions of Maharashtra Control of Organised Crime Act (MCOCA) since they were acting under the command of underworld dons Dawood Ibrahim[5] and Chhota Shakeel. Mehta was later charged with 72 criminal offences while over 600 civil action suits were filed against him."[4] The International Cricket Council withdrew umpire Asad Rauf from the Champions Trophy in the wake of reports that the Mumbai Police are conducting an investigation into Asad Rauf’s activities in the IPL spot fixing scandal Harshad Mehta & Ketan Parekh Scam Harshad Mehta: the high-profile stockbroker Harshad Shantilal Mehta (1954-2002) was an Indian stockbroker who grabbed headlines for the notorious BSE security scam of 1992. they bought huge amounts of shares at a premium across many industry verticals causing the Sensex to rise dramatically. Ankeet Chavan and 17 other people (including 14 alleged bookies) who were arrested by the Delhi Police were released on bail on 10 June 2013 by a Delhi court due to lack of evidence to be charged under MCOCA. Born in a lower middle-class Gujarati Jain family.[6] Sreesanth. However.4 June 2013. They took advantage of the many loopholes in the banking system and drained off funds from inter-bank transactions. along with his associates. [4] He added. causing the Sensex to plunge almost dramatically as it had risen. Mehta spent his early childhood in Mumbai where his father was a small-time businessman. Transition from an ordinary broker to ‘Big Bull’ Mehta. was accused of manipulating the rise in the Bombay Stock Exchange (BSE) in 1992. Delhi Police said that Sreeshant. this was not to continue. The family relocated to Raipur in Chhattisgarh after doctors advised Mehta’s father to shift to a drier place on account of his health.[7] Delhi Police chief Neeraj Kumar said they had been taping phone calls since April 2013. "Further arrests will be of bookies and no more players will be arrested. Significantly. Ajit Chandila had not applied for bail.

The 1992 security scam and its exposure Who is Ketan Parekh Ketan Parekh is a former stockbroker based in Mumbai who was convicted in 2008 for being involved in engineering the technology stocks scam in India’s stock market in 1999-2001. But the differences are very conspicuous. Even the borrowings of KP put together could not rescue his scrips. A team of traders. placed sell orders on KP’s favorite stocks. known as the bear cartel. The Global Trust Bank and the Madhavpura Cooperative were driven to bankruptcy as the money they had lent Parekh went into an abyss with his reportedly favourite K-10 stocks. He is also known to have razor-sharp forecasts on market developments. a day after the presentation of the Union Budget in February 2001. Parekh comes from a family of brokers and is currently serving a period of disqualification from trading in the Indian bourses till 2017. A chartered accountant by training. . Ketan Parekh has been accorded with sobriquets such as the Pentafour Bull and the One Man Army by the country’s national business newspapers. while the market simply refers to him as ‘KP’ or associates him with his firm NH Securities. and crushed their inflated prices. the so called K-10 stocks. What distinguishes Ketan Parekh from the 'Big Bull' late Harshad Mehta The two have been compared by people to have operated their scams using similar means and that their backgrounds were similar as well. Anand Rathi and Nirmal Bang. Parekh is known to have no reluctance in meeting the press. Parekh appeared to have run out of luck. Shankar Sharma. Lady luck disfavours Parekh! Notably.

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