Here's a Congress report that compares how two different coalitions dealt with the scams

that erupted during their tenure in power.

*Corporate Scams / Satyam Issue: UP !s. "#*
* *
*I. **Summary*
$ %he UP go!ernment&s response to the Satyam issue is a fine e'ample
of appropriate go!ernment action without interference in the functioning of
an independent (oard
$ Its also a great e'ample of how a failing company can (e rescued
for the (enefit of all sta)eholders* contrast this to the poor handling of
companies such as "orthern +oc) in U, and -ehman .rothers in the US
/ In contrast to the UP go!ernment&s sound handling of the one corporate
crisis during it&s regime0 is a long litany of ma1or corporate scandals
under the .2P/led "# go!ernment that remain unanswered 3e.g.0 U%/45 Scam0
#isin!estment of .-C60 7u1arat Cooperati!e .an) Scams0 Cy(ertron
%echnopolis Scam 8 see details (elow9.
* *
*II. **:hat the UP 7o!ernment did in the Satyam Case*
%he Congress/lef UP 7o!ernment too) timely action to limit the damage
caused (y the Satyam fraud:
;. Immediate steps were ta)en to dissol!e the tainted (oard and
reconstitute a fresh one. %he 7o!ernment appointed prominent and <ualified
indi!iduals/#eepa) Pare)h0 ,iran ,arni) and C. chuthan as #irectors to
further restore in!estor confidence.
=. In<uiries were instituted against top (oard mem(ers and the
independent directors immediately resigned. >!en the signing partners of the
uditor firm Pricewaterhouse/Coopers were arrested.
?. In a procedure that was (oth transparent and a(o!e(oard0 independent
agencies @S>.I0 %he ASerious Brauds In!estigation 6ffice& of the Central
7o!ernment&s Binance Cinistry0 the +egistrar of Companies0 the Institute of
Chartered ccountants of India etc.D were called in to assist the 7o!ernment
in minimising the loss felt (y in!estors.
5. %he 7o!ernment continued to (e in!ol!ed till the sale of the same
through a clear sale process to %ech Cahindra.
E. dditionally we are in the process of putting in place a comprehensi!e
(lueprint to strengthen e'isting corporate go!ernment mechanisms 3such as
Clause 5F of the -isting greement0 %he S>.I ct ;FF=9 while introducing
greater legislati!e control.
*III. **%he +eport Card of the "# 7o!ernment on Corporate Scams*
Ha!ing stated the a(o!e0 it would (e pertinent to draw attention to the
e'pansi!e list of Corporate Scams allowed to (e perpetrated under the "#
+egime.
* few e'amples of corporate scams that arose under the leadership and
(lessing of the "# 7o!ernments include: *
*;. **%he U%/45 Scam*
*=. **%he #isin!estment of .-C6*
*?. **%he 7u1arat Cooperati!e .an) Scams of =GG?*
*5. **Cy(ertron %echnopolis Scam*
* *
*@;.D U%/45 Scam*
/ %he US/45 scheme had *= crore in!estors0 the (ul) of whom were small
sa!ers0 retired people0 widows and pensioners*.
/ In ;FFH0 the U%I crashed0 and the .2P/led "# go!ernment scram(led to
organise +s. ?0EGG crore (ail/outs to U%I.
/ %he capital of U%I fell (y ??I from JE0GGG crores to EG0GGG crores0
ma)ing this a =E0GGG crores scam. dditionally pu(lic faith in financial
institutions was completely eroded.
/ In a glo(al recession such a mista)e would (e catastrophic0 it would
retard and hamper the country&s chances of reco!ery turning it into a full
(lown crisis.
*@=.D .-C6*
/ Complete erosion of pu(lic money in the name of Adisin!estment&.
/ %he aluminium giant where missiles such as Agni& and APrith!i& were
shaped0 was sold to Sterlite company for a paltry sum of +s.EE; crore at a
time when the assets alone were worth +s.E0GGG/40GGG crore.
*@?.D 7u1arat Cooperati!e .an) Scam =GG?*
/ In 7u1arat0 the "arendra Codi 7o!ernment had to pay out +s. HJG Crore
to small in!estors after the 7u1arat .an) Scam of =GG? which led to the
closure of F cooperati!e (an)s and ;J other (eing declared sic).
/ %he administrator of the crisis/ridden Panchamahal #istrict
Co/operati!e .an) e!en registered a complaint against 7u1arat Cinister of
State Pra(hatsinh Chauhan and =H others0 alleging their in!ol!ement in the
em(eKKlement of +s ;=5 crore 3+s ;.=5 (illion9 from the (an)
*@5.D Centaur Hotel*
/ In 2une =GG=0 the =HH/room Centaur Hotel near Cum(ai&s domestic airport
was sold (y the Hotel Corporation of India to .atra Hospitality0 for +s H?
crore.
/ *:ithin four months*0 .atra Hospitality sold off the hotel property to
the Sahara group *for +s ;;E crore0 ra)ing in a ?EI profit*.
/ %his leads to the inescapa(le conclusion that the (idding process of
the hotel was (latantly rigged in fa!our of . -. .atra0 an industrialist
with close ties to the +SS.
/ Lalidating the a(o!e theory0 the Comptroller and uditor 7eneral0 in
its report/=GG50 e'pressed *serious dou(ts on the methods used (y the "#
go!ernment for computing the !aluation of the underlying assets* in the
matter of disin!estment of Centaur Hotel. C7 stated that the 7o!ernment had
*suffered a loss of rupees ;5E.4F crores in re!enue in the sale of
Centaur Hotel*.**
*@E.D Cy(ertron %echnopolis Scam*
$ nother scam of tal .ehari La1payee 7o!ernment relates to laying
the foundation stone of a Software %echnology Par)0 named as ACy(ertron
%echnopolis& (y tal .ihari La1payee. *%he par) was promoted (y the same
2ohri (rothers who were (enefited (y the U%I scam*.
$ %he +SS man who facilitated this was Pradeep "arayan Cathur0 who is
a trustee of Lishwa Sam!ad ,endra in -uc)now and a senior mem(er of LHP. *%he
+a1nath Singh go!ernment in UP colla(orated in the !enture (y (ecoming a
partner of the proposed I% par)*.
$ Since the company had the (lessings of the Prime Cinister0 the
innocent pu(lic in!ested hea!ily in the company.
$ >!idence of the suspicious and ill/thought out nature of the
!enture: currently the promoter0 r!ind 2ohri is under in!estigation (y the
C.I.