SCAMS IN INDIA SINCE 1947

NATIONAL SEMINAR INDIAN COUNCIL OF SOCIAL SCIENCE RESEARCH NORTH WESTERN REGIONAL CENTRE

BALVIR KAUR GILL
ASSOCIATE PROFESSOR(POL. SCI.) GOVT. RAJINDRA COLLEGE BATHINDA, PUNJAB

3/15/2014
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To generate this wealth such scams take place which the citizens cannot even think of. If all the amount of scams since 1947 that have been disclosed. Britishers urged Indians to be corrupt to fix their roots in India. where an individual would misrepresent themselves as someone with skill or authority. politics and criminals. Indian Scenario:. Scams traditionally resided in confidence tricks. power tends to corrupt and absolute power corrupts absolutely. In recent centuries India has earned a place among the three most corrupt countries in the world. After Independence Indians did not change their conciousness. group or company in an attempt to obtain money or something else of value. Corruption in India is a phenomenon that one has to face practically at every level and in every walk of life . one strengthens the other.Scam means a fraudulent scheme performed by a dishonest individual. then India will become most richest country and a super-power overnight and can permanently kill all social problems mainly poverty and unemployment. It reached at the peak after the establishment of East India Company. Corruption in India is from ancient time. Absolute Power generally is a combination of political power and economic resources. Scams in India is a consequence of the nexus between Bureaucracy. Corruption became a part of our administrative and political culture. It is a global phenomenon and is omnipresent. In Kautilya's Arthasastra noted about corrupt officials.India is considered as the largest democracy in the world. The End of Gupta Dyansty and Mughal Dynasty was due to corruption. Meaning of Scam:. It has been aptly said. India is also known as a corrupted Land. A few politicians and big business houses join hands and rob the hard earned money of citizens to generate enormous amount of wealth. Our sixty six years of existence as an Independent nation and sixty three years of working of the constitution has resulted in increasing scams day by day.Corruption is a universal phenomenon. Today the number of ministers with an honest image can be counted on fingers. The Scams in India have increased to such an extent that any person joining political parties has an intention of making easy and fast money within the shortest period of time. is pooled up. Although India freed from Britishers but still it is not free from scams and scandals. After this in British rule. It is well established that politicians have extremely corrupted the world 2 .

Nagarwala scandal:. open the economy to the rest of the world.(1971) Wroth Rs 60 Lakh Personality Involved:.Scams are anti-national. India has witnessed a number of Political scams in recent times. Telgi scam. 2.Smt. slowing down progress . but it is the people with whom the power lies. But somewhere down the line.V. Common wealth games scam. antieconomic development and also anti poor. despite having reforms to curtail and control bureaucratic discretion. So we should dig deep to see which scams were the biggest and most damaging to the country and its citizens alike. Scam are major serious problem in India . that act as a cancer spreading the venom. but a closer look at the history of India reveals that scams and political scandals have been part and parcel of Indian political discourse since independence. Indra Gandhi 3.power. scams have sealed up even further. An average Indian citizen is hard working and diligent. The list of scams in india is endless. improve the transparency and accountability. In our daily life. most of us must have been a witness to or a victim of the corruption thriving in some or the other part of the country.(1948) It was first major corruption case in independent India.V. This is the season of scams and the biggest ever corruption cases in India have been unearthed more recently. These corrupt politicians in India go scot-free. 1. In fact.K Kirshana Menon -High commissioner to Britain Brief Description:.K Menon ignored protocols and signed to Rs. the fodder scams are examples for this recent scam evils. license raj.80 lakh contract for the purchase of army jeep with a foreign firm. Recent scams like 2G scam. Jeep Scam:. unharmed and unpunished. Here is a list of some worst political scams since Independence. we ourselves are responsible for allowing and being taken for a ride by these people.Rs 80 lakh Person involved:. Scale of corruption:. In post liberalization era. Leaders like Lal Bahadur Shastri or Sardar Vallabh Bhai Patel are a rare breed now who had very little bank balance at the time of death. These may not be the only ones. people are surprised to find an honest politician. Maruti Scam:.(1974) 3 . These are some worst scams from them that were caught and brought to the notice of the public.

institutions.(1992) He discovered a trend to buy stock before his scam of Rs.Rs.Shiv Shankar. P.(1986) It was only of Rs. Sanjay Gandhi 4.Personality :.Satyam computers chief Ramalinga Raju. Loss of Nation:. Officers. Win Chadha. Shukla. 950 crore. Satyam Scam:-(2009) B.C. Scale corruption:. Sharad Yadav.4000 crore Persons Involved :.(1991) It was a shameful scam of India which involved top politicians receiving more than Rs. Worth of Scam: .Smt.Rs. Telgi Scam:. 8000 crore. 1000 crores in Hawala.Rajiv Gandhi.L. Indra Gandhi. Quattrocchi.(2002) Abdul Karim Telgi Sold forged stamp papers created by him to banks and govt. 64 crores but the nature of scam which is related to Indian security and defence and involvement of high profile political leaders like Rajiv Gandhi and other congress men make this as hallmark scam of India . Balram Jakhar. The fodder scam:. 4 . 9. S. Madan Lal Khuranna. Bofors Scam:. 1000 crore Persons Involved:. V. 4000 crore from inter bank transaction to buy shares at premium across many sectors.Rs. The Hawala Scandal :. Ramalinga Raju misappropriated books and inflated figures which led to a scam that suffered a loss of Rs.K Bhatnagar. 6. 64 crore.(1996) Famous “Chara ghotala” which cost Lalu Prashad Yadav his chief Minister Position Loss to state of Bihar:. People Involved :. Persons involve:. Harhad Mehta Share Market Scam:.Rs. 5. 20000 crore.8000 crore Company alleged:.Abdul Telgi and many Govt. Loss to company alleged:. Persons involved :.Harshad Mehta and Many other bank and other businessmen 7. 8.Rs. Loss to country:.Lalu Yadav( then Chief Minister of Bihar) & Cabinet Minister Jagannath Mishra.K Advani.

So we can clearly see that scams are increasing day by day.000 crore.Rs. M.Kanimozhi. The amount of scams that were caught & brought to the notice of the people is about Rs.A Raja.Then chief minister Yedurappa and Reddy brothers. Ajay sanchoti. Jagathrakshakan. The study reveals that scams are increasing since 1947.(2012) Inappropriate way of allocation of coal mines to private companies were found by CAG. There are approximately 12 major scams in the period from 1947-1975. Subodh Kant sahai. Persons Involved:.Rs. 11. owner of Obulapuram mining company. Coal allocation scam:. 35000 crore. It seems that they are directly proportional to our population. According to reports. 5 . These are the only few scams. Navin Jindal etc.70000 crore allocated for Common Wealth Games. Nitin Gadkari.000 crore Persons involved:. 910603234300000/-. out of Rs. Loss to Karanataka Govt. They were also alleged to encroached forest land and mined larger area than allowed. 13. Loss of country:. Politicians & Company alleged:. 2G Spectrum:. 24 major scams were in the period from 1976-2000 and 19 major most shameful scams in the 21st century. only half were spent & rest were shown on papers only.16000 crore. Loss of Nation :. Persons involved:. Siddharth Bahura.(2010) Reddy brothers allegedly paid bribe to bag mining contracts from Yedurappa. Bellary mining Scam:.more than Rs. Commonwealth Games scam:-(2010) It was one of the most shameful and disgusting scam for India.Suresh Kalmadi (as main accused) & many relatives of politicians.:. Loss of country:. Sanjay Chandra etc. 176. 186. 12.Rs. S.10.Manmohan Singh.(2010) 2G spectrum license were distributed to various companies on a very low rate.

Tansi land deal and Urea scam. Churhat lottery scam. Lalu Parsad Yadav was forced to leave the chief minister post of Bihar after the insurgence of Fodder scam. 2. In India.votes scandal. money laundering above Rs. there were some major corruptions done by politicians and the impact of these scams were so powerful that several governments collapsed due to it. and Cash-for. Because there is no corruption in the bureaucracy or business unconnected with politician. (It was at 95th in 2011 and 87th in 2010) in Transparency International Corruption Perceptions Index (CPI) . the election is not state funded.The biggest cause of scam in today’s India is the politician. Now a days higher level scams are threating the derail of country’s economic position. The list of political scams after the independence is huge in number. Hence. he had to loose 1996 elections due to scams only. Oil-for-food program scam. Some of them are Bofors Scandal. Fodder scam. Telecom scam. The major political scams of this decade are Taj corridor case. India is at 94th position in the list of 178 countries. All the anti-corruption wings are under direct control of Government. This is one of the major reasons behind political corruptions .Causes of scams in India:. From 1947-1980. 3. Now-a-days cost of winning elections are beyond imagination. Transparency International has estimated the annual worth of great Indian corruption market is US$ 5 billion and 75% of them are corruptions made by politicians. the major political scams are 1971 Nagarwala scandal. JMM Bribery Scandal. Bitumen scam. In 1996. Rajiv Gandhi’s “Mr. ministers and politicians get an easy way to escape from the 6 .V Narasimha Rao is considered as the Father of Liberalized Indian economy. Inactive use of right to information act by Indian Citizens is encouraging politicians to do corruption in a fearless manner. Reasons behind increasing political scams in India:1. St Kitts case and Hawala Scandal. 4000 crores by Madhu Koda. Ex-chief Minister of Jharkhand and 3G scam. Between 1980 and 2000. That is the reason why we live in a rich country but still we are poor. 4. Pressure of coalition government is preventing the prime Minister or chief Minister to take any stern action against a corrupted politician or minister. Though. Clean” image got tarnished in the Bofors scam and he lost 1989 elections. P.

Absence of strong public opinion and civil society against scams. Investigating agency should have teeth and Autonomy:. 10.The most important thing is to have an autonomous and effective agency to investigate into corruption cases. MPs. 9.Law should be passed to make it obligatory for all ministers. Lack of inner party democracy in Indian political parties. It is an urgent need to evolve a new strategy. 11.State funding of election expenses may encourage honourable and well-meaning individuals can enter into politics. 7. The present form of Central Bureau of Investigation. Inefficient Judicial system. REMEDIES TO COMBAT SCAMS IN INDIA Corruption has strong roots . and all levels of public servants to declare their assets owned by them. Lack of electoral reforms. There are suggestions to combat scams in India:1. The Act (prevention of corruption act 1988) has weak actions & proceedings towards corrupt people. their spouses and children every year. These should be made available to everyone who wants to pay for it.Even a single cell has the power to recreate it. 6. Any falsification should be declared as a punishable offence. 12. 13. State Funding of election :. MLAs. Whistle blowing activities and private sector initiatives against corruption are at their infancy stage in India. 4. and code of conduct to regulate the political party activities. The main reason behind increasing scams is also that rich people and politicians were into punished in last years.charges by pressurizing the investigation agency.:.The biggest cause for corruption in todays’ India is mainly because of politicians and political parties. Corruption has to be uprooted and the tumours which it has formed like the cancer tumours had to be removed . Social environment . Declaration of Assets. 2. 5. 3. Electoral Reforms :. Lack of transparent law. Strong amendments should be made to people representation Act. Central and State Vigilance commission are not having proper autonomy to 7 . 8.

5. Every student involvement also help to decrease the scams throughout the world. 12. The have to understand the purpose of their jobs. Strong Civil Society:.function effectively. Even a politician should be afraid of the law. 7. 8 . Interaction of people with CBI is also helpful to decrease scams. no amount of anti-corruption measures can succeed. because at present we are not having Independent. 10. empowered. Creation of strong public opinion against corruption:. 13. 15. accountable institution to investigate the complaints of corruption cases and prosecute the guilty. Give a overall idea about rules and regulations in every field. 9. The punishment should be strictly followed by government through transparency. Staff should work as per their conscience. The laws should be tightened and process should be fast. The Govt.Separate courts should be established to deal with corruption cases in India.Establishment of strong Lokpal at centre and Lokyukta in states were need of the hour. Separate courts for corruption cases:. Establishment of strong. 8. 14..We need strong civil society that takes initiatives instead of depending helplessly on politicians and officials to fight against corruption.Public opinion must be created against corrupt polticians and officers unless people take up cudgels against corruption. Efficient Lokpal at Centre and Lokayukta in States:. There should be no excuse to anybody those who are involved in the scams. 6. Job allocation recommendation should be stopped. 11.

Bureaucratic inefficiency also affects growth directly. such as through misallocation of investments in the economy.ROLE OF MEDIA In a democratic country like India. a majority of the survey respondents from PE firms said that a company operating in a sector which is perceived as highly corrupt. “high-level corruption and scams are now threatening to derail the country’s credibility and economic boom. as investors bargain hard and factor in the cost of corruption at the time transaction. may lose ground when it comes to fair valuation of its business. History is witness that press has been instrumental in putting an end to atrocities and bringing the downfall of ruthless dictators. frauds. Impact of corruption and scams LOSS OF CREDIBILITY:. Media creates such valuable citizens.A study of Bribery and corruption in India conducted in 2013 by one of the largest global professional services firm Ernst & Young (EY). According to a report by KPMG. According to the neoclassical growth model. In India. But a democratic society needs vigilant and informed people who are able to see through the gimmicks of political parties and politicians. hence affecting its growth rate. media has done much good to society by exposing various scams.Additionally corruption results in lower economic growth for a given level of income.Corruption my lead to further bureaucratic delay and inefficiency as corrupted bureaucrats may introduce red tape in order to extort more bribes. Livine and Renelt showed that investment rate is a robust determinant of economic growth. 9 . institutional variables contribute to determining steady state per capita income level and speed of convergence to its steady state. Besides. vernacular press did the job of uniting people against the oppressive British rule and triggered its end in the country. the ultimate power lies with the people. scandals. embezzlements and may other cases of corruption leading to initiation of enquires and other process of prosecution against the perpetrators of these crimes. Economic Loss:. Such inadequancies in institutional efficiency could effect growth indirectly by lowering the private marginal product of capital and investment rate.

Conclusion :. If these criminal and corrupt politicians command us and make laws. higher growth rates:. These are increasing day by day involving politicians in it since 1947. in terms of investment. In India there is a provision that no criminal person shall be allowed a member of parliament or member of legislative assembly . Scams are contemporary challenge that is posed to every citizen of India how to conquer the menance of corruption in India. The Supreme Court directed courts to complete the trial of MPs and MLAs involved in corruption cases within one year . growth and jobs for India is over US$50 billion a year. The system can no longer be trusted by the citizens. How can we expect welfare of public or nation from them.Highly corrupt India is poorly governed and this may be the main reason for rampant and widespread scams in India .MLAs will be disqualified upon framing of charges against them by competent courts . On 10th march 2014 Supreme court passed the order while hearing a PIL on minimizing the role of money and muscle power in elections.Lower corruption. So that MPs . Let us take a view to create an atmosphere free from scams and corruption in India and that may be our highest achievement.If corruption levels in India were reduced to levels in developed economies such as Singapore or the United Kingdom. India’s GDP growth rate could increase at a higher rate annually. 10 . what type of law would be formed.The list of scams are huge in number. The illicit use of power by politician has turned the entire political system into a venal one.Unfortunately a very large number of them are a part of it.K Prahalad estimates the lost opportunity caused by corruption. C.

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