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Most of the people are unaware of what effect their actions will have on others. People are becoming very greedy and egotistic which has resulted in inhuman exploitation of others. Most people believe that money is the power and the ultimate goal of their life has become only to earn money, no matter even if they need to take unethical and illegal ways. They have gone even to the extent of snatching others basic necessities of life. Blackmarketing, corruption, murder, and adulteration hold no bar for them. They can adulterate even food-stuff such as milk, ghee, spices,etc., and also lifesaving medicines. As such many people have now become cruel and selfish. We often blame the government, politicians and other people but hardly take any responsibility to improve ourselves. We talk about the corruption and lack of our ethical values but often do not take any action to eliminate corruption or to promote, honesty, integrity and ethics in our societies. My fellow Indians, it is time to join our hands together to fight corruption. What is corruption? As per the Transparency International (TI); Corruption is operationally defined as the misuse of entrusted power for private gain or the use of public office for private gain. In other words, use of official position, rank or status by an office bearer for his/her own personal benefit. Therefore the corrupt behaviour would include, bribery, fraud, stealing the public resources, partiality/favouritism, seizure of public assets for private use, etc. Transparency International (TI) further differentiates between "according to rule" corruption and "against the rule" corruption. Facilitation payments, where a bribe is paid to receive preferential treatment for something that the bribe receiver is required to do by law, constitute the former. The latter, on the other hand, is a bribe paid to obtain service. Corruption in India The most shocking part of the widespread corruption in India is the fact that it is not anymore within the parameters of how TI defines corruption, it is no longer limited to politicians or the public servants, it has become very common amongst almost every section of the society at every level. It is not only prevalent amongst rich who are greedy in spite of possessing enough but also prevalent amongst poor. The fact is that large number of Indians are now involved in corrupt practices in one way or the other, either due to greed or due to so called compulsion. People have gone even to the extent of adulteration of food-stuff such as milk, ghee, spices and also lifesaving medicines. International Perspective on India On the international stage, India is considered a nuclear power and one of the fast growing countries in the world. Despite of the very high level corruption, the world's economists consider India as Emerging power in the world. The US government is talking about India's world power status (http://www.cato.org/pubs/pas/pa-381es.html). The Forbes magazine lists 53 Indian billionaires in the world. India has also become the biggest exporter in the world of software services and software workers. The Indians are contributing to American and Global progress; a few facts are: 12% of scientists in the US are Indians 38% of
doctors(physicians, dentists, PhDs, etc) in America are Indians; 36% of NASA scientists are Indians; 34% of Microsoft employees are Indians; 28% of IBM employees are Indians; 17% of INTEL scientists are Indians(German Magazine). BUT same time India is amongst the most corrupt countries of the world with a score of only 3.4 out of 10. It ranks 84th amongst 180 countries (Corruption Perceptions Index 2009, (http://www.transparency.org/policy_research/surveys_indices/cpi/2009/cpi_2009_table ). India is worse than many countries in Asia and Africa such as Botswana, Ghana, Namibia, Taiwan, Korea, Bhutan, and China. In the world competitiveness scoreboard, which is the assessment of several factors, e.g. Government system, Business efficiency, infrastructure, etc., it is dragging only at 31st position. Though India boasts of a high economic growth, it is shameful that there is still large scale poverty in India. It has the world's largest number of poor people living in a single country. The recent study confirms that India has more poor people than in 26 African Countries. (VOA news). One of the main reasons of this poverty is ‘CURRUPTION'. A recent news on IBNLive ‘Corrupt Indians siphoned out $125 bn in 8 years', more than $125 billion worth of funds meant for the uplift of Indians were illegally siphoned out of the country by corrupt politicians and corporate sectors, between 2000 and 2008. Last year there was shocking news in Indian media reporting on trillions of dollar black money Indians have in Swiss bank. Almost every day we hear about many scandals and corruption cases in several government and corporate sectors in India. The government of India has taken many steps to reduce poverty, stop corruption and improve delivery of public service but most of them did not get much success due the corruption and bureaucracy in whole system and at each level. Several international investors and development agencies are always afraid to invest in India due to the high level corruption. The recent example of misuse of fund and corruption in commonwealth game is shame for our country. Main cause of corruption Why do officials misuse public office for private gain and steal public money? Why does a common man get involved in the corruption and unethical activity? Although there are many causes of corruption but based upon several research, surveys and studies, the following are most common causes in most of the governments and societies: - Lack of rules, regulations, transparency and accountability in public sectors. - Lack of control, supervision and auditing. - Lack of articulated Code of Conduct for public servants and politicians. - Attitudes or circumstances that make average people disregard the law. - The change in the value system and ethical qualities of people. The moral and ethics have declined and most people give more importance to money than excellence. - Bribe may provide a convenient means of getting work done or avoid any punishment. - Bad incentives, such as any employee not earning enough to live on; so he supplements his income with bribes. - Tolerance of people towards corruption. - Absence of strong public forum or civil society to oppose corruption. - etc. Consequences of Corruption
Corruption is found to be one of the most damaging consequences of poor governance and poverty, classified by lack of efficiency, transparency and accountability. Corruption diminishes investment and suppresses economic growth and development and also reduces the effectiveness of public administration. It diverts the public resources towards corrupt politicians and officials and away from the needy and poor people. So, corruption can be considered anti-poor and anti-development. How to eliminate corruption in India Many people think that only government has responsibility for eliminating corruption and we often blames the government; however in view of the level of corruption and the existing framework that we have in India, it is very clear that government alone cannot stop corruption. If we, the people of India and civil society institutions remain unconcerned and hopeless in fighting against corruption then it can never be eliminated or even can't be reduced. Thus, it is the responsibility and duty of every Indian to fight against corruption and take some actions to promote honesty and integrity and contribute in the motion of ‘Honesty' in India. No matter what your position is, what your age is, whether you are a government employee or working in a private sector, a student, a retired person or even a housewife, each and every individual has the ability to contribute in eliminating corruption in India and push government, civil society and policy makers to implement more measures at each level. . Furthermore, fighting corruption requires more than government policy, laws, tools and legal system; it requires awareness of our social responsibility, moral values, excellence in our daily work, etc. We need role models, campaigns, debates, and many different approaches to educate our people, to inspire our young generations, to change the mindset of corrupt people and to tackle with every cause. Moreover it need willingness, commitment and active participation of media, civic associations, voluntary groups, teachers, students, social workers, etc. Overall, India has a strong potential for being a reasonably corruption-free society if every citizen of India, joins hands together and take some actions to deal with every cause. In this 21st century we have knowledge and proven mechanism to fight corruption. We also have the power of media and technology to spread the message to millions of people within a fraction of second. So don't sit back; every one of us needs to come forward and take actions. If you are not affected today you will be affected tomorrow. In addition to the ongoing initiatives such as Citizens' Charters, RTI Act, social audit, egovernance, lokayukta, etc., which needs some improvement and harmonized approach across all states, the followings are a few other good initiatives which could help to tackle corruption and every cause: 1.Initiative taken by St Joseph's School in Darjeeling to award a certificate of merit — of honesty — to students who desist from cheating is an excellent example. Another example of opening a bookshop without salesman at Bhagat Puran Singh Memorial Senior Secondary School and Girls College at Rajewal town in Ludhiana, is great initiative ( http://www.inewsindia.com/2008/07/28/limit-of-honesty-a-bookshop-without-a-salesman )
2.Introducing anti-corruption classes in the school curriculum in Indonesia is another great example to fight against corruption. (http://timesofindia.indiatimes.com/Sunday-TOI/Takinglessons-in-honesty/articleshow/4130109.cms#ixzz0zwFCSMhK ) 3.The Citizens Charter in Indian Government (http://goicharters.nic.in ) which was introduced to improve the quality of public services to ensure accountability, transparency and quality of services provided by various government organizations was also a good approach but it has not been very effective as many people are not aware of it. Our media can help to bring awareness of these kinds of initiatives, so that others also can learn from them. We have so many TV channels in India, if these channels start inviting role models, social workers, celebrities and youths on one platform to hold debates/discussions and bring awareness of consequences of the increasing corruptions, I believe people will become more active in fighting corruption and improve their ethical qualities. The media can interview general public, government officers, etc., if they know about Citizens Charters. Our teachers can also play a major role in teaching moral values & integrity to our young generation. To bring the awareness and educating the young generation in upholding the honesty, they can also organize debates, discussions and plays in school to encourage the new generation to be an honest citizen. If not you, then who? If not now, then when?" Join the ‘Indian Honesty Movement' group on Yahoo to build a network of the honest people in India like you to share your thoughts and ideas. Forward this article to all your Indian friends to create more awareness.
Right to information act
Main article: Right to Information Act The Right to Information Act (2005) and equivalent acts in the states, that require government officials to furnish information requested by citizens or face punitive action, computerisation of services and various central and state government acts that established vigilance commissions have considerably reduced corruption or at least have opened up avenues to redress grievances. The 2006 report by Transparency International puts India at the 70th place and states that significant improvements were made by India in reducing corruption.
The LokAyukta is an anti-government corruption organization in the Indian states . These institutions are based on the Ombudsman in Scandinavian countries. An amendment to the Constitution has been proposed to implement the Lokayukta uniformly across Indian States as a three-member body, headed by a retired Supreme Court judge or
org is one such organization that is promoting the use of Zero Rupee Notes  to fight corruption by shaming the officials who ask for bribe. The proposal has not yet been acted upon by the Indian government. Enforcement automation of traffic violations by Bangalore Traffic Police . Introduction of smart cards for vehicle registration and drivers licenses by Karnataka Regional Transport Organization. The creation of a central agency with specialized courts with broad powers. Creation of Anti-Corruption Police and Courts Some have called for the Central Government to create an anti-theft law enforcement agency that investigates and prosecutes corruption at all levels of government. and comprise of the state vigilance commissioner and a jurist or an eminent administrator as other members . is likely to have greater impact in curbing corruption at all levels[opinion]. Whistleblowers Whistleblowers play a major role in the fight against corruption. . Special courts that are more efficient than the traditional Indian courts with traveling judges and law enforcement agents are being proposed. nobribe.high court chief justice. Computerization • • • Bhoomi is a project jointly funded by the Government of India and the Government of Karnataka to digitize the paper land records and create a software mechanism to control changes to the land registry in Karnataka. however. Certain states such as Andhra Pradesh (Andhra Pradesh Anti-corruption Bureau) and Karnataka (Lokayukta) have similar agencies and courts . The project was designed to eliminate the long-standing problem of inefficiency and corruption. Another popular initiative Jaago Re!One Billion Votes from Tata Tea has now changed its focus from voter registration to fighting corruption . http://5thpillar. Private sector initiatives Several new initiatives have come up in the private sector to raise awareness about Corruption related issues and to build anti-corruption platforms. which was highlighted by the assassination of Satyendra Dubey.org is another platform for corruption free India and advocates the use of direct and regular measurement of corruption to force the hands of the leadership into dealing with corruption related issues. including state and local level. India currently does not have a law to protect whistleblowers.
nearly 20 years ago. . 80 per cent of Other Backward Classes and 85 per cent of Muslims belong to the category of â€œpoor and vulnerable. It is a major destabilising factor in politics as well as economics. â€œThese are the discriminated. a government-affiliated body.â€ Technically. People who live on Rs 20 or less per day are the real poor and vulnerable. This observation was made in 1988. 394.Corruption keeps India poor <table align="center" border="0" cellpadding="0" cellspacing="0" width="90%"><tbody><tr><td class="DCText">By Joginder Singh</td></tr> <tr><td class="DCText"> According to a report published by National Commission for Enterprises in the Unorganised Sector (NCEUS). It was the late Rajiv Gandhi who had once remarked that out of every one rupee sent by Delhi. A part of the period the report covers was the time when the previous government was in power and had used â€œIndia Shiningâ€ as election slogan. disadvantaged and downtrodden. Similarly. when it comes to covering up these misdeeds. toil in the unorganised sector. or 86 per cent of Indiaâ€™s working population.â€ earning less than Rs 20 a day. Although one scam may differ from another in name. According to one estimate. There is no dearth of money in this country. especially for small and marginal farmers. In fact no scheme ever stipulates the action that will follow in case of any malpractice. However.â€ There is no doubt that dire poverty exists in our country. the report says. only 15 paise or 15 per cent reached the recipient or the intended destination.9 million workers. but a dearth of will to deal with the corrupt and to ensure that peopleâ€™s money is spent for the people. Nearly 80 per cent of these workers are among those who live on less than Rs 20 per day. Most government schemes have built-in scope for corruption. Since then things have gone from bad to worse. The report says that 88 per cent of Scheduled Tribes and Scheduled Castes. SCs. Corruption is the single most major factor keeping India poor and backward despite having the best of natural and human resources. is a fertile ground for poverty. These scams generally involve peopleâ€™s representatives who live on peopleâ€™s money. and consider themselves to be Indiaâ€™s saviours. the total amount of money stashed in the foreign bank accounts of Indian politicians and others is around US $410 billion. OBCs and Muslims. the basic approach of all scams is to make as much money as possible out of public projects. the techniques are also similar. The dismally poor comprise largely STs. a large chunk of these 836 million Indians â€” 77 per cent of the countryâ€™s population â€” are above the poverty line at Rs 12 per day. Agriculture. with all kinds of scams being unearthed. 84 per cent of whom spent more than they earned and were often caught in debt traps. on the state of informal or unorganised employment in India. lessons learnt are soon forgotten and now the present government is making claims about â€œIncredible India.
And between 1998 and 2001. the CBI registered 2. â€œAll the problems become smaller if you donâ€™t dodge them.256 cases under the Prevention of Corruption Act.458 cases. Out of the two. as on February 27. Millions are at the receiving end of this phenomenon in their everyday lives.068 crores as bribe. Touch a thistle timidly. apart from cuts from several government schemes last year. Any amount of funding to ameliorate their lot whether through employment guarantee or other rural development schemes. and it pricks you. Of these 41 were from administrative departments.265 individuals for corruption. but confront them. we can tackle poverty as well. Grand Corruption is more difficult to measure as both parties have an interest in keeping things under cover. Unless corruption is checked.â€ It is not the country. the embezzlers and other criminals have no fear of the law. Quick justice is not the priority of any government. 2006 will show: Supreme Court 33. they keep punishment at bay.635 cases. its spines crumble. but the leadership. While the former is based predominantly on duress. four were from the police and 23 from the revenue department. If we can tackle corruption. William S. along with some corrupt politicians and rulers. as otherwise. By delaying the process of justice. high courts 3. grasp it boldly. But a report has shown that public servants received Rs 21. the CBI and the Central Vigilance Commission investigated 13.040 cases. This is an indirect measure of Corruption where a sample of population is polled about . which is on trial. there are honest politicians and officers. Halsey says. will be like throwing away good money. How to measure Corruption? 1 There are two main types of Corruption based on its quantum – Petty Corruption faced by common man in his day to day life and Grand Corruption which takes place at higher levels. we would not have even a semblance of progress. though they all talk about zero tolerance. Of course.306. subordinate courts 25. the vast majority of Indians who are not in a position to give bribes. Between 1996 and 2000. when the total number of government and public sector employees in the states and the Centre runs to 194 million. It is for this reason that the corrupt. The legal system is already overloaded as the following court pendency. whenever they come in contact with any arm of government at any level anywhere in India. has been limited to measuring perception of Corruption (CPI). Measurement of Corruption thus far.341. will remain immersed in terrible and inescapable poverty. This is a drop in the ocean. Corruption in Indian bureaucracy has now come to be accepted as part of the machinery that governs India. the latter is more consensual and is driven by expectations of mutual gain.The delivery system that is the Indian bureaucracy has let the country down.
Since the queries are general and have no reference to specific instances of Corruption. The collected data should be aggregated over time to yield a Corruption trend.) as well as the time taken to obtain the services. it may be useful in determining the trends as well location specific anomalies. should be encouraged to anonymously disclose their bribes. Those to be surveyed may be chosen randomly from the list of people who recently availed those services (example.A Harvard Study on Corruption in Driving Licenses). Exit polling may be attempted discreetly . leading to a quiet burial of the incident. similarly a basket of public services that suffer from rampant corruption may be surveyed on a regularly basis to measure Corruption trends. Yet this is an exercise that needs to be indulged into if only to form one of the several indicators in measuring Corruption.their perception of the level of Corruption present in a region or service. One such model to measure petty Corruption based on Inflation. so the responders are more likely to adjust their responses along expected lines with the passage of time. any direct corruption data is difficult to obtain and its also more likely to be intentionally tampered . The basket of services may consists of common services like a) Driving License b) Registration of new Company c) New Vehicle Registration d) Registration for Sales Tax e) Passport Application f) Issuance of ‘C’ Forms etc. people are more forthcoming and the data is easier to collect. Those who have recently paid bribes or are likely to have paid a bribe. Survey questionnaire should cover both the cost of obtaining the service (including legal fee. Hence Perception while being an important indicator can not replace direct measurement of Corruption. is discussed below:Inflation Model: As Inflation is measured on the basis of prices of a basket of goods and services. Direct Measurement of Corruption is a daunting task because of the cloud of secrecy and fear associated with it. Also since there is also no correlation between when the bribe was paid and when the question was asked. Such surveys should should be undertaken at regular intervals across various regions for each of the services in the basket. The victims fear retaliation and the perpetrators have a vested interest in secrecy. So most often. However as the data may or may not be based on ’self experience’. The time duration for obtaining the services may act as an alternate indicator of Corruption trends. Various approaches to measure Corruption directly may be suggested based on how other intractable quantities are measured. it is likely to vary wildly between real and imaginary. bribes paid and agent commission etc. Other models for measurement of Corruption may be built around Exit Polls or Confession Boxes. Data for the same service across various regions should be compared to find out if there are any location specific bottlenecks. While this model may fall short of giving an indication of the overall quantum of Corruption.
S. There is another school of thought that believes that growth in economy will itself deal with Corruption. nor any information on its time line trends. raids. I. not even a common place commission of inquiry on the spread of Corruption. GDP. The higher the estimate. Each of these models would require a lot of tweaking before they deliver credible results. no best practices. Overall there are no credible estimates of the quantum or cost of corruption in India. the higher is the air of invincibility around it. it has led to a situation . so we may choose to ignore it till such time we are riding the growth tiger. Measuring corruption is also a lot about collective intent. Corruption has grown stronger and stronger. But for an all important issue like Corruption. We continue to live in a hazy daze where everyone knows that Corruption exists but there is no official confirmation of the same. the sole measure that exists is the Corruption Perception index maintained by an international NGO. Government Approval ratings etc. media and corporates to make it work. This has led to a situation where a feeble improvement on the Corruption Perception Index off late has hidden an astounding growth in the quantum of Corruption as evident from recent disclosures – Koda scam. Most importantly. The monetary estimates of Corruption normally vary from billions of dollars annually to trillions of dollars in accumulated figures. It allows the government to put their blinkers on and go about their work ignoring the existence of Corruption completely while continuing to bring out new schemes & policies that benefit the intermediaries more than their intended recipients. It will depend upon how serious we are we as a society to uproot this menace.near the places of service delivery. Transparency International. Human Development index. Apart from that. there are no meaningful studies on the geographical spread of Corruption. While the index has done immense service to the anti-corruption cause. 300 Crorepati babus.A. Much of this initiative will have to come from the Private sector with the help of academics. Why do we need to measure Corruption? There are a whole host of scales and indexes for everything under the sun including the esoteric Business Confidence index. it is primarily meant for a broad level comparison among countries and is based on perception rather than actual ground level data. Its utility in managing our country’s internal affairs is limited. In the process however. The figures are either based on very broad rules of thumb or are completely a figment of one’s imagination. Most of these figures have a hollow ring to them and are unable to mobilize public opinion to force the hands of the government. Happiness index to the more mundane such as Inflation.
2. Primary reason for measuring Corruption is that measurement is the first step towards a cure. Most of our present knowledge of Corruption levels is perception based. There are strong reasons for developing new metrics to measure Corruption despite its underlying difficulties. Such a public opinion can only be built around a systematic measure of Corruption. It is undesirable. all of us have an aspiration to see India as a developed country soon. to a Rs. Some of them are enumerated below: 1. We have never pro actively sought to measure Corruption. Hence very little effort has been made to check institutionalized Corruption which needs measurement on an ongoing basis. there is a growing tolerance for corruption in our society. 4. Behind the facade of anti-corruption. 62 crore Bofors scam which shook the Central Government and led to a Prime Minister loosing election. but inevitable. How much farther do we need to travel before we act? The time to act is now!! Obituary to Corruption5 Buoyed by the recent economic growth. corruption has the evil ability to destroy the nation before any benefit of progress reaches the common man. everyone says. which alone can deal with the fast mutating problem. . high return game and is feeding on itself to grow monstrously. 3. but. We need to measure something to be able control it. Even those perceptions are limited and shaped by new disclosures in scams.000 crore Koda scam where another tainted politician was sworn in as state Chief Minister soon after the scam came to light. Investment in infrastructure is considered the best bet to get there. Inevitability blunts public opposition. Probably.where Corruption has become a low risk. Exit Polls). 5. The smokescreen of impossibility of measuring Corruption because it is secret is often used to prevent probing on this front. For. only rooting out corruption can actually get us to the finishing line. The monstrous growth in Corruption can only be dented by a committed public opinion. I submit. 4. Corruption has always been treated as aberration of individuals who need to be exposed & punished. 6. We have come a very long way from a Rs. The inevitability stems largely from our inability to measure and track Corruption. However secrecy hasn’t stopped us from probing several other clandestine issues such as Sexual preferences & Political inclinations( Election Surveys. we will get some distance with that strategy.
We need to invoke the social norms to deal with this more complex situation. paying more to those in power is an obvious solution. Instead of feeling cynical and helpless. it is not possible to start exploring end of corruption. Ultimately. Nor do many positions of power operate as “markets” to design pay per performance. or hedge through performance based pay that is commonly used in business! In effect. Media can also show case ordinary people who fought and achieved extra ordinary things. In reality. Media can play a key role in diffusing the power by raising awareness of people through investigative journalism. the playing field is more complex than that. One can deal with “power” by improving transparency and increasing accountability. it spreads very fast in politics. almost institutionalised? Sequence and eliminate corruption sector by sector.But corruption is neither a new nor a simple phenomenon to conceive of its ending! In fact. Ethics & Values must find more emphasis in education. the problem will be solved when democracy deals with corruption. pride. whether it is done as is by raising pay levels. After all that’s where it all begins. what could be lost if caught while taking bribe. I chose a simpler definition articulated by Transparency International “the abuse of entrusted power for private gain”. false ego and calumny. With such an overwhelming description. that is deep rooted. hypocrisy in the form of false promises. common man will then start blowing whistles! The common man could also be aided by novel tools of expression viz. How do we deal with systemic corruption. “so the wrong-doer cannot do wrong without the hidden will of you all”… Turning to dealing with “gain”. our own examples such as Gandhigiri and Zero value currency notes or the famous Citizen Initiative for Constant Light from Turkey. exploitative profit. So. Deal with power. and also build courage among common people to fight corruption. Deal with gain. should be more than what one gains through that bribe for a job done. naked selfish desires. If not controlled with true knowledge containing permanent truths. economics and various organs of the state and institutions of the society. The minds of some of the greedy Wall Street executives became corrupt not because they were underpaid. start with education and taxation? Two sectors with potentially the biggest impact! Where will corruption take India? The most disquieting aspect of the widespread corruption in India is the fact that it is not anymore . treachery. sycophancy. This helps instill fear among the corrupt. wickedness etc. We have experienced that from every day examples like railway ticket reservations to mega illustrations like public monitoring of Government projects. vested interest. Information Technology can improve transparency. officiousness. It also takes the other forms like. the solution has just two components. Looking at it this way. Vedas called corruption a hydra-headed monster! Its heads are bribery. after all Kahlil Gibran did say many years ago.
thoughts and actions. As the reason for the dishonesty is greediness and the desire to get things done at any cost one can think that most of the country men are greedy and do not anymore think that the means should justify the ends. as such incidents have been repeatedly published in the press. it could only be a case of exception rather than a rule. doctors and NGO organisations are.confined to politicians or the government machinery alone. of all religions. churches and mosques spread all over the country and they are all densely visited day in and day out by the feverishly praying Indians. what can be the future of the Indian society in such conditions? It can be only frustration. so long as the existing systems and practices would allow them to make money and get things done in one way or the other. It is prevalent amongst almost every section of the society at every level. are suspected to be steeped in nepotism. which could be different only in degree between the individuals. Corruption is not only prevalent amongst rich who are greedy in spite of possessing enough but also prevalent amongst poor. In any case. But. . As the practice of corruption is a dishonest act. It does not shock Indians anymore to know that not only the politicians. Is not religious ethos contrary to corruption and dishonest practices ?The unfortunate situation in India is that those who call themselves most religious are often found to have indulged themselves in dishonest practices on many occasions. The irony is that India is still considered to be a very religious country and it is still widely believed that the religion is the basis of Indian life. this view has not disturbed most of the Indians at all and they do not seem to care as to what others think of them. either due to greed or due to so called compulsion. the fact is that most of the Indians are involved in corrupt practices in one way or the other. the willingness to sacrifice for the sake of not getting involved in corrupt dealings is conspicuous by its absence amongst the most. Several of the religious centres. This is obviously true. professors. The study of world phenomenon on corruption has repeatedly branded India as one of the most corrupt countries in the world. Unfortunately. ministers and IAS & IPS officers are corrupt but even the judges. if one would say that any particular Indian is honest to the core. one has to think that most of the Indians are dishonest. Today. Now. This is not a flattering statement and many readers would desire that it would not be so and such statement could have been avoided. considering the fact that there are hundreds of temples.
without investigating the reasons for their existence. They should not remain as small people who would compromise with the aspects of good governance for the sake of remaining in power for a few number of days more. One would shudder to think as what would happen to the peace of the society. there could be a number of persons who would be left out of this cycle due to inefficiency or commitment to the cause of truth and such persons would be driven down to despair. dogs and mere police rifles will not be able to beat down such determined crusaders. Prime Minister and Deputy Prime Minister of this country and Chief Ministers of the states should have the wisdom to realise the potential dangers facing this corrupt ridden Indian society. they would not be able to improve the conditions and therefore. But. There are a number of determined isolated war groups already existing in the country and they are generally branded as terrorist groups and treated brutally by the state machinery. Security. they would find that in a corruption entrenched system.chaos. history would judge them differently. This kind of corruption in the national polity and public and private life cannot go on for ever. a few of them may finally take to physical attack on corrupt and dishonest persons. leading to violence and bloodshed. It is sad that those who are in charge of the nation today do not appear to realise this and still are merrily going ahead with their dealings unconcerned about the harm that it would inevitably do to the larger national cause. senior police officers of molestation charges are all living in comforts and enjoying positions. Those holding the positions of President. Even as the vicious cycle of corruption would continue with one swindling the other. . The politicians and bureaucrats would call such crusaders as arsonists or terrorists. if such groups would enlarge in size and number. What is very sad and extremely disquieting about this country is that Ministers suspected to be involved in murder. without disturbing the overall peace in the society. unrest and even bloodshed in the not too distant future. But. The incidents of history indicate that some of such persons who are out of the corruption loop could take up the war against corruption at one time or the other. thus effectively exposing the fact that the crusade against corruption has finally failed in India. Chief ministers of swindling crores of public money.
after Independence India had a Soviet-style system of quotas. India has the second-fastest growing economy in the world. “The fastest growing sector of their economy is IT and that is the only sector that is completely outside the government’s control.” Nevertheless. after China.” He said that the history of graft in India was the product mainly of three things.Corruption retarding India’s growth.” he said. say. despite having been ordered to do so by India's supreme court. In a speech given to an anti-corruption corruption in New Delhi. The British created so many rules that anyone could be shut down if. He said that graft meant infrastructure projects were late. a factory inspector found that a bucket of sand was missing. over-budget.” said Gareth Price. says Indian PM The world's second-fastest-growing economy is being held back by its 'evil' nature Manmohan Singh. extortion and fraud have on all levels of life in India. a foreign policy think tank. “Secondly. an international corruption watchdog. in which the licences that you received permitting you to produce a quantity of something basically . “What message are these judges sending out?” asked Anupama Jha. and often poor quality. It is a sad situation. “They would be even faster growing if they were less corrupt. “Judges were once greatly respected and now these questions about judicial corruption have lowered their status. Mr Singh described the damaging effect that bribes. has said that corruption is the single greatest threat to the nation’s economic prospects. director of the Indian branch of Transparency International. making the place a ‘fire hazard’. head of the Asia programme at Chatham House. “Firstly. So the inspectors would be bribed simply not to shut the place down. “The pervasive corruption in our country tarnishes our image [and it] discourages investors who expect fair treatment and transparent dealings with public authorities. the Indian prime minister. while labeling India’s opaque business practices “a fertile breeding ground for the evil of corruption. the British bureaucratic legacy to the subcontinent. The difficult task facing the country’s anti-corruption forces was emphasised when shortly afterwards judges of only two of India’s 29 states agreed to declare their assets.
to build a deep water port in Pondicherry. First. “And the third thing is that the tax system is extraordinarily complex and condusive to corruption. I’m usually not in one place long enough to have to face the small payoffs or to follow the grand cover-ups from start to finish. corruption becomes more of an issue. C. as well as on the Save Our Beach blog set up by the Pondicherry Citizens Action Network.S. but this one issue that has come up affects me. I will go into more detail on the scam in a future posting. Background The Government of Pondicherry has offered a sweet-heart deal to a developer. So the government would be bribed to hand out licences. “Twenty years ago people in India who had wealth didn’t necessarily flaunt it.” Mr Price added that graft may have become more of an issue recently due to an increase in conspicuous consumption. Yet everytime I hear another story. And if you know that someone is a civil servant and is supposed to be on a certain salary but is seen driving a Porsche. I am headshakingly shocked. incredulous.” CASES OF CORRUPTION IN INDIA Corruption in India: A Case Study Part I: The Players I know that corruption in India is pervasive – it touches every aspect of daily life.determined how profitable you would be. my friends and all of Pondicherry and the neighboring coastal areas of Tamil Nadu. which includes a pages with downloadablepresentations and documents. Chief Secretary to the Government of Pondicherry • Khairwal joined the Indian Administrative Service in 1974 and has a long history of corruption. whether of petty corruption or grand larceny. Recent attempt to simplify it met with resistance mainly from business who were afraid they’d end up paying more rather than less. You can read about the environmental issues on Mark’s blog. Subhash Projects & Marketing Limited (SPML). . Not only will this be an environmental disaster. “But over the past ten years you have seen people driving Porsches around Delhi for the first time. Khairwal. I want to introduce the players. but everything about this deal is a scam – from the premise of the project (the port) to the awarding of the contract.
• C. The representatives of SPML stay at his home when they visit Pondicherry. 20 million. The CBI “failed” to file the appropriate papers that would have permanently seized Khairwal’s properties. it was originally considered and subsequently rejected by the Governmet of Pondicherry for “want of experience. • • • He was arrested with a mistress and actually spent 2 days in Tihar jail. extends onto half of the road in front of the building. Having successfully undertaken over 350 projects in the areas of water & power management. (SPML) is India’s leading engineering.S. and with a well-qualified and highly skilled team of more than 1000 engineers. Subhash Projects & Marketing Limited (SPML) “Subhash Projects & Marketing Ltd. power distribution. Khairwal is number one on the Central Vigilence Commission (CVC) list (List “A”) of officers against whom the commission has “advised launching of criminal proceedings” since 1 January 1990.” • SPML was indicted and punished with fines by the Calcutta High Court and Supreme Court for obtaining contracts through underhanded dealins with the Ministry of Power. the Subhash Group is geared to build a future that India has never seen.) • Khairwal is closely connected with the SPML. He was prosecuted by the Central Bureau of Investigation (CBI) for possessing “disproportionate” assets – 28 “immovable” properties valued at Rs. Khairwal’s home in Pondicherry. The road has to take a jog around his house. complete with an indoor.”From the SPML website • On 28 January 2004. • • In December 1997. infrastructure and environmental projects. Part II: The Scam . swimming pool. so they were released back to him. “retired” him. That period was reduced to 3 years on 13 December 2006 by the order of the Securities Appellate Tribunal (SAT). (C. SPML was debarred from accessing the securities market and dealing in securities for 5 years by the Securities Exchange Board of India (SEBI) for price manipulation.S. the CVC advised prosecution for Khairwal’s misconduct as Joint Secretary at the Ministry of Surface Transport. • SPML has no experience in building or managing ports. construction and project management company with more than 25 years of experience in large-scale turnkey projects in the public and private sector. basement. Khairwal was prosecuted by the CBI for illegal possession of a huge quantity of foreign liqour. The Central Government. He promptly moved from New Delhi to Pondicherry. misstatements and nonlisitng of shares. rather than suspending Khairwal for his crimes. In fact. the developer to whom the port contract was awarded. where he as reinstated at a higher level than his previous post. Mumbai. irregular subscriptions.
I introduced the major players involved in this story: Subhash Projects & Marketing Limited (SPML).In Part I of this report.S. There was no tender for the port development. Rumneek Bawa. was dumped halfway through their contract for delivering unfavorable findings. the Department of Industries & Commerce. Pondicherry Loses The Memorandum of Understanding (MoU) between the Government of Pondicherry and SPML is outrageous. construction and project management company. and C. C. official consultant to the Government of Pondicherry. Rumneek Bawa stays at C. Revenue sharing of only 2. SPML will make no investment in the project.6% of profits with the Government of Pondicherry. Pondicherry.S. Khairwal’s house when in Pondicherry. 2. No feasibility study was conducted. (Mr. 5000/month for starting industries in rented buildings. Khairwal is involved in a hastily awarded concessional agreementwith SPML. in 2002. Market rate today is Rs.SPML is then awarded the port development contract. 4. Tender for consultants for a feasibility study.) Who benefits from the port? By Emanuele SMPL Wins. Obviously the comparison is not parallel. The norm is 30% of revenue. DS Constructions was initially selected unilaterally. bypassing procedural norms. • • • • The leased land can be sold by SPML in ten (10) years at the prevailing market rates. Chief Secretary. 5. 1. They will raise funds by mortgaging the leased land and floating shares. joins Subhash Projects. 2000/acre/year. The Government is to buy back the port in 50 years at prevailing market rates. In this post. but I think you get the picture. “Corruption in India: A Case Study”.S. an engineering. Government of Pondicherry. 5000/square foot. I mentioned in my previous entry that SPML submitted a proposal to undertake a feasibility study for the port project and was rejected for lack of experience. Mr. the SPML Board approved an issue . I will outline the gross neglect of Government procedures and regulations and the cronyism and corruption that paves every step of the Pondicherry (now Puducherry) port development process. 3. The National Institute of Port Management. To give you an idea of how ridiculous this price is. CEO of DS Constructions. offered subsidies to encourage entrepreneurship by women and members of Scheduled Caste and Scheduled Tribes at a ceiling of Rs. Khairwal. • 400 acres of prime property (beachfront!) is handed over to SPML at a lease of Rs. (Early this month. The Port Director for Pondicherry was transferred for asking too many questions. 6.
selling key jobs to the highest bidder. Government jobs on Sale for open Auction Information collected from research articles and newspapers. Hence corruption has become a low-risk.karnataka. One another friend had sent his wife to India for delivery and they are planned to go back to the country as soon as the contract of his work period is completed." . Whether in cash or kind. one pays to become a licensee.) are the responsibility of the Government of Pondicherry. procurement or license is on sale and appointments to higher judiciary are on quid pro quo arrangement.. Birth/Death certificate [genuine cases] ." Taking bribes on Births and dead bodies Posted By: IndiaEyeWitness.000." "Government had failed to formulate a permanent recruitment policy for providing jobs to the educated jobless youths. The going rate is Rs 50. officer can see that this guy is still crying and is in depression of father's death and a proof of clean shaved head. he need a birth certificate to bring them back. a vendor. And a clean certificate will be issued after giving bribe. One NRI (it is same for anyone) came to India to complete the kharma kaanda (Process performed after death) of his father after a sudden death. Rs 150 for the person who gives a bath . high-profit activity. " "`Who can pay the price'. hardly selects anyone." alleged an angry resident.com/govt/corruption/) is showing a bribe rate card applicable in Bangalore. Rs 100 to shift the body from van 2. Karnataka. lafda hai bhai. whose staff-strength has gone up from five to 20 in two years. the subordinate services federation. The government now gives class four jobs to under-matric youth who could be potential militants. and the reason shown to him is "ye nri ka beta hai. promotion. posting. environmental degradation. a legislator.com (link: http://www." "Our conviction rate in corruption cases is as low as six per cent.Rs 250/Birth/Death certificate [fake cases] . All mitigation measures (for pollution. This has been going on for quite some time with hardly anyone raising a finger. "These jobs are on sale.of securities – just after their debarrment from the Securities Exchange expired – to qualified institutional buyers for an aggregate amount not to exceed $100 million.. a government official.) • • All clearances and licenses are mandated by the MoU. "Appointments for open auction. Then he applied for passport and police came to his home for 'Criminal enquiry' for 10 months old baby. almost every government job. It is the ministers who select on the basis of lists given by MLAs and MLCs.Rs 500+ Burying a dead body: 1." "While the public service commission has few jobs to offer. " "Government jobs are given to those persons who pay huge amount to the ruling party politicians and leaders. When the baby is 10 months old. a policeman or a judge. etc. They didn't give him a birth-certificate until he pays bribe. He is being asked for money (bribe) to give a death certificate immediate very next day even though govt.Com / Date: State: Any State District: Any District City: Any Place One story I know about is. He needs a death certificate to complete some process at home.
Most of the tainted MCD officials. will be satisfied with this growth. There are about 4."  The Asian Legal Resource Centre (ALRC) however is not sure whether the estimated over 200 million Indians who are presently suffering from malnourishment. Accused in connivance with other corrupt officials have avoided probe and prosecution in cases against them. However. sought data related to cases awaiting prosecution in the last 25 years. some of them for more than three decades.300 corruption cases against MCD employees in which the investigations are pending. The country's overwhelming population is often given as an excuse to justify poverty and starvation in India." Garg said.877 such cases were registered by the MCD's vigilance wing.5 lakh. I filed first appeal after that they sent me 96-page list containing name of officials in MCD against whom departmental action and police cases are pending. "The information was initially denied by the PIO. MCD Commissioner K S Mehra expressed unawareness over the issue and said he will be able to comment on it after some time. Even more discouraging is the fact that three officials retired from the MCD without completing the probe in such cases.3. When contacted. and the many more million who have done so during past decades. working at middle and senior levels like zonal incharge.350 officials. This theory is applicable only if the State itself is poor and has no . Out of the registered cases.299 cases were pending against about 3. Rs 500-Rs 2500 for postmortem [in Victoria hospital]. 4. the country should have the satisfaction of recording for the fifth year in a succession a rate of economic growth of over 8. 1.435 cases were by anti. The Anti-Corruption branch has registered 40 cases under different sections of Prevention of Corruption Act against 100 MCD officials and some other private persons. Chief Vigilance Officer of MCD Pradeep Shrivastava refused to comment over the issue. In reply to an RTI query. have over two to three such cases against them. the RTI reply said. Exercising his right to information. an RTI activist and advocate." Garg said. claims: "In this 60th year of independence. INDIA: Widespread corruption in the Public Food Distribution System causing starvation deaths INDIA: Widespread corruption in the Public Food Distribution System causing starvation deaths The Prime Minister of India in his foreword in the 'Report to The People' dated May 22. the Public Information Officer of Vigilance department of Municipal Corporation of Delhi (MCD) said that as many as 4. 2007.5%. If you don't pay they will tell you they found alcohol in the body and it is a police case. superintendent and executive engineers. "MCD has become the nerve centre of corruption. The employee strength of the civic body is around 1.300 CORRUPTION CASES ARE PENDING AGAINST MCD OFFICIALS New Delhi Has MCD become a haven for corrupt officials? The official data indicates so. Police and CBI whereas 2. Vivek Garg. Rs 1000 to bury the body How we can change these guys who are doing a business on births and deaths? I don’t know how their family can build their house with this kind of money earned on dead bodies and innocent newly borne babies? NEARLY 4.corruption branch of the DelhiGovernment.
Poverty and resultant starvation in India is not limited to the lower caste. to prevent the poor. This is because the longer the people remain poor and near starvation. However. even though 70% of Indians are. the management of this system suffers from corruption – particularly black marketing. For example. Defense spending of such proportions in a country where a section of the population equivalent to 2/3rds the size of that of the United States is undernourished or suffering from malnourishment. The National Minimum Programme promulgated by the Government of India in 2004 speaks about the Rural Employment Guarantee programme. To receive subsidised food a family is required to posses a ration card. which is also reflected in India’s voluntary pledge to the United Nations Human Rights Council. which also serves the purpose of determining the family’s financial status.  India is a country of contradictions. particularly those from the lower castes. which are notoriously corrupt. The programme is not properly implemented and in places where there are possibilities of implementation and thus employment. The lower caste forms only about 20% of the Indian population. A malfunctioning administrative system has a direct bearing upon the living conditions of the poor. The targeted PDS was introduced in India in 1997. whereas starvation and malnourishment affect about 53% of its entire population.means to procure enough food for its people. India’s projected defense budget for 2007-08 is 24 billion US$ and it plans to spend further on its weapons upgrade programme. recruitment to the programme is based on caste bias and nepotism. the easier it is for the village-head to continue subjecting them to bonded . A country that has a projected 9% development index performs worse than some Sub-Saharan countries with regard to addressing starvation and malnourishment within its territory. is difficult to stomach. The United Nations Special Rapporteur on the Right to Food has highlighted this contradiction of priorities in his report following his mission to India in 2005. This process involves obtaining certificates from the village-head and officers at the district administration. millions of Indians in rural villages are not benefiting from this programme and remain unemployed. For example. India is not poor. However. However. The ALRC has documented several cases where the refusal of the villageheads to issue certificates to the poor is the part of a larger plan. district administration officials demand bribes. caste prejudices and the utter failure of various local governments. The shift from a universal PDS to a targeted PDS was performed with the intention of avoiding the misuse and wastage of subsidised food materials. Licenses are awarded by the respective state governments and the authority to issue them is delegated to the district administrations. the PDS is still a failure in India. the licensing procedure for running a PDS shop is plagued by corruption. Starvation and malnourishment are the direct result of the failing administrative system in India. although they suffer the most. for the distribution of food to targeted population the government has established the Public Food Distribution System (PDS). owing to a lack of proper screening methods and transparency in the procedure. While the village-heads often refuse to issue such certificates. from accessing government welfare schemes such as the PDS shop.
by being employed by the landlord. the Asian Human Rights Commission. caste-based discrimination is widely practiced and discrimination prevents the lower castes from accessing food. the lower castes are deprived of landed property and those who have titles to particular pieces of land are frequently prevented from actual possession by local feudal lords. The smuggling involves crossing the river at night. starvation and malnourishment. . Due to this. the government of India has not taken any credible action regarding this issue. as was briefly mentioned in the Special Rapporteur’s report. The continuation of caste-based discrimination is yet another factor that perpetuates poverty and deprivation of food. The West Bengal State Government considers the people living along the international border in Murshidabad as being illegal immigrants from Bangladesh and does nothing for their welfare. However. although in reality this tends to be for much less pay than that stipulated in the Minimum Wages Act.labour. the most affected are the poor landless communities.  60 years after independence. and which has also been mentioned by the Special Rapporteur. However. including States that have enacted the land ceiling laws. a major portion of the smuggling involves food – grains collected from PDS shops are smuggled across the border to be sold on the black market. while others are shot and killed by the Border Security Force stationed along the Indian border. The state and central government schemes remain highly ineffective and are totally failing the starving population in Jalangi. when landlords find that agriculture is not profitable for various reasons and sell off their land to property developers. Land erosion by the river Padma has rendered large numbers of persons landless. One such example is the Murshidabad district of West Bengal. In addition to this. as this often results in the starvation of the agricultural labourers who depended upon such large-scale cultivations. large-scale poverty exists in remote regions of the country. left well in advance. the prevention of caste-based discrimination remains on paper rather than being enforced in practice. The situation of hundreds of families in the Jalangi block of Murshidabad involves grave cases of exploitation. This situation is exploited by cross-border smugglers based in the state who employ the poor to smuggle articles across the border to Bangladesh. the poor can still benefit from such large-scale cultivation. Those who could afford to. large-scale land holding still continues in various States. In addition to poverty caused by human interference. Holdings of large extents of land (by individuals or families) deprive the poor from having arable lands of their own. This district shares a border with Bangladesh. but the poor had to stay until their land was taken by the river. which often claims peoples’ lives. Additionally. many of which have been documented by the ALRC's sister origination. However. Ironically.
The system itself. meaning that cases registered under the law in those states will have to wait for years to be decided through the regular courts.26% are from urban areas while 52% are rural households. 78% of these persons are trying to make use of the system . as claimed by the government. The prevention of corruption within the PDS cannot happen in a vacuum. and taking effective steps to prevent corruption within the PDS. This shows not only the tolerance that various state governments exhibit towards corruption within the PDS. but also the influence of the licensees upon the government. Such corruption exists in the PDS due to the failed criminal justice system in India. Illegal dealing with rationed articles is a crime in India.  The PDS is viewed as the most corrupt institution in India. Additionally. a separate and independent mechanism must be constituted to investigate such cases. . it is a pity that in India.  The actual number of households using the PDS is around 91 million. It will require equipping the criminal justice mechanism in India to specifically address this problem. in particular the Essential Commodities Act. To change this.The government of India has formulated and is executing several welfare programmes intended to prevent starvation and malnourishment in India. states most frequently withdraws from prosecutions related to cases registered under the Essential Commodities Act as compared with other prosecutions. the prevention of corruption within the PDS is a critical starting point. The specifics of this are often ignored or overlooked in favour of various other issues. 1955. Even though the Rapporteur expresses his concerns about corruption in the PDS. there must be a multifaceted approach to the issue focusing on: the implementation of welfare schemes. In addition to an increase in the number of special courts to try offenses related to the distribution of rationed food articles. what has been mostly ignored is the poor state of functioning of the PDS. covers only 16% of the total population. There is also a need to change domestic law.  A crime registered under the relevant domestic law must be tried in a special court constituted in each state. significantly less than the 160 million being claimed by the government. However. However several states are yet to establish such a court. To achieve any improvement in addressing the food security in India. but is either spoiled and lost or sold on the black market. food that is distributed to the poor does not reach them. there are no quick-fixes. This must be independent from the local police since the latter is itself corrupt and will therefore fail to effectively investigate crimes related to food distribution. As a country that has a surplus of food. increasing the existing network of the PDS within the country. While proper planning and implementation of these programmes are necessary.  Of these 91 million households an alarming 61% claim that the PDS is plagued by corruption and 49% claim that corruption has increased in the past year. there are no concrete proposals suggested by the Rapporteur in his report to address this issue.
the Asian Legal Resource Centre requests the Human Rights Council to: 1. This mechanism must be independent from the local police. Request the UN Special Rapporteur on the Right to Food to further study the specifics of corruption within India's PDS system. and the multi-billion dollar event that was expected to elevate India's profile on the world stage has instead plagued India's reputation. 4. as the latter is corrupt and therefore inefficient in investigating corruption. 5. (Getty Images: Phil Walter) The Commonwealth Games has officially opened. incompetence and sheer negligence have now risen to the forefront. but covers all persons in need of food security assistance. so that it covers not only the 16% currently being covered. To further request the Government of India to immediately implement the recommendations made by the UN Rapporteur on Right to Food in his report E/CN.and to make necessary policy changes required to address this situation. and the government of India must be urged to make such changes and facilitate this process. so that the Rapporteur can help the government to address this issue more effectively.2 . Recommend that the Government of India take immediate steps to prevent widespread corruption within the PDS – these steps must include the establishment of independent and separate mechanisms to investigate cases of corruption in the PDS.the main Games in India India has spent around $5 billion on the Games. .In this context. nepotism. 2. Allegations of corruption.4/2006/44/Add. Request various UN bodies such as the UNDP and the FAO to assist the Government of India in addressing the issue of hunger and starvation in India. This requires a change in the existing domestic law – The Essential Commodities Act. Request the Government of India to urge its state governments to set-up the required number of special courts to deal with cases of corruption within the PDS. Corruption . particularly through proper and vigorous implementation of development programmes in the country. 6. 1955. 3. Urge the Government of India to expand a functioning PDS network within the country. potentially damaging much sought after foreign investment.
lending a voice to those dominated by the ever-widening gap between the haves and have-nots. Beleaguered Indian Olympics Association chief Suresh Kalmadi has also been caught in the eye of the corruption storm. undertook an expose on the Games and revealed internal documents which showed organisers spent $80 on one roll of toilet paper. Bestselling Indian author and one of Time's 100 Most Influential People. India has spent around $5 billion on the Games . but even at an individual level. India Today. Suresh Kalmadi.almost nine times its originally estimated budget of $500 million. $125 on a first-aid kit and $61 on a soap dispenser which retails in India for only $2. The controversies do not end there. "I want the foreign media to support us because ultimately it is not about India versus Australia or anything. Commonwealth Games Organising Committee (OC) treasurer Anil Khanna handed in his resignation in the wake of allegations that that his son's company. had been awarded a contract to lay 14 synthetic surfaces at the RK Khanna Tennis Stadium. if you have connections. On August 5. not only in business.But those who know India are not surprised. Rebound Ace." One of India's leading newspapers. He said the Games should be boycotted because the corruption and nepotism that has pervaded the event should not be supported. Chetan Bhagat. Anil Khanna's resignation came a few hours before an Organising Committee executive board meeting convened to discuss the corruption scandal that has rocked the Games. Although disappointed at the murky state of affairs in India. The Games have been criticised as being the most expensive ever and. it is about one sixth of humanity which is suffering under corrupt leadership.modern ideas hand-in-glove with outdated business traditions." he said. The economic superpower is built on shaky foundations and has a conflicted corporate culture . "It is corruption or connection. there is outrage even amongst the nationalists. but instead set out to urge people to boycott it. in a country where over 800 million people live on less than $2 a day. . was an avid supporter of the Games when it was first announced. TS Darbari (OC joint director general) and Sanjay Mohindroo's (OC deputy director general) are all named in investigations into alleged irregularities in services provided during the Queen's Baton Relay in London. Mr Bhagat is pleased that these issues have been exposed and made global. you go further in India.
officials implemented a new right-to-information law that requires both state and central governments to divulge information about expenditures. .000 for its "services" without a written contract.Investigations showed that a little-known UK company. India is famous for its dynastic attitude. In 2009. even if they are unmerited candidatures. if not derailed. Almost all sectors of India's officialdom are riddled with corruption and graft. some of India's politicians have awakened to the magnitude of the country's corruption crisis. Following what was widely labelled as a "leakage" . The head of the philanthropic Byrraju Foundation. and costs are continuously raised. However. was paid around $500. In an investigation. Fortunately. With corrupt officials siphoning money every step of the way. In October 2006. and family has always been the very fulcrum of this society. ambulances and barricades that had to be put in place for the Queens Baton Relay. It was ranked behind China which placed 79th. The core of nepotism lies in the structure of Indian society. after decades of political inertia and underinvestment in infrastructure.India's euphemism for rampant corruption . not only has India exorbitantly exceeded its budget. one that transcends the barriers of region.sports minister M S Gill issued a stern warning saying "prompt and appropriate" action will be taken if any irregularities are brought to the ministry's notice. not only in politics. nepotism remains a unifying theme in India's business culture. AM Films. This form of power and fortune favouring family has been prevalent in the Commonwealth Games. which promotes rural development. Individuals are placed in positions of power. Mr Kalmadi defended the controversial payments made to the London-based firm and said the company was paid for its services which included items such as portable toilets. and well behind advanced economies such as Japan at 17th and Australia at 8th. It is little wonder then that. projects often get delayed. caste and creed. but there have been numerous delays in projects. religion. but also business. Indian Express revealed that the Organising Committee includes around 38 of the top brass who are related to one another. contracts and hiring to any citizen that requests it. Transparency International ranked India 84th out of 180 countries in its Corruption Perceptions Index. Verghese Jacob says around 25 per cent of all costs go to corruption.
is an exception to the rule. out of which three of them . Another is Reliance Industries. Yadu Raj Singh and Tejinder Singh . Bharati Singh Rao.Amar Singh Wazir. which was divided and handed down to his two sons. and the list goes on. hindering social advancement and preventing India from unlocking its true economic potential. Ratan Tata's half-brother and current managing director Noel Tata was often predicted to be the next-in-line to the throne. Boxing Federation secretary general P K Murlidharan Raja's son. Billionaire Ratan Tata. In August this year. he broke away from tradition among Indian family-run conglomerates and launched a global CEO search. Some of India's greatest business leaders. founded by Indian business baron Dhirubhai Ambani. . then-majority owner of an Indian securities joint venture with Morgan Stanley. was also hired as a director in the OC's Workforce division. In 2003. OC vice-chairman Randhir Singh has four nephews on the committee. JM Morgan Stanley. Some of the leading Indian-owned companies also have nepotic characteristics.General administration and workforce joint director N P Singh attributes the staggering numbers to sheer coincidence. Nimesh Kampani. often predetermining an individual's station in life. "It is a coincidence that so many of them are inter-related. Aditya Mittal. The prevalent nepotism often sees unqualified people at the reigns of multinational conglomerates. who was made a board member at the tender age of 23. and has a board that includes his son. Vivek Raja. and his daughter Vanisha Mittal. but the rumours subsided when the chairman launched the international talent search. Anil and Mukesh Ambani. offered some publicly-loaded advice by saying. the daughter of a congress MP from Gurgaon (Rao Inderjit Singh). in the sunset of their lives. One example is ArcelorMittal.work in the Commonwealth Games Association Relations. which is headed by Indian steel tycoon and one of the world's richest men Lakshmi Mittal. This defining character of the Indian business arena places great emphasis on an individual's inherited name. was hired last year as a director." Mr Singh said. directly under Mr Singh. think not of their legacy but rather of dividing their kingdom amongst their children. founder and chairman of multinational diversified firm Tata Group.
in addition to 16 investigations – one of them criminal .2bn . It was meant to be so very different. costs out of control. The Commonwealth Games' projected price tag the year Delhi won the bid was £42m." These initiatives are slowly starting to see the nepotism-driven business model weaken. fresh probes into goings-on at the organising committee. But independent experts say the cost is closer to £4.4bn . was delivered on time. Indians say the country's reputation should be judged instead by a different grand project: the Delhi metro. But the deep-rooted tradition will take decades to erode before once-favoured scions will be passed over by CEOs and chairmen in favour of professionalism and most importantly. As foreign investors continue to flood India. He may. As recently as 4 June. corporate governance and international standards of professionalism. corruption allegations mount. time will absolve them.into government conduct. India is starting to take heed. It has now officially jumped to £1.100 times more than first thought. It has been a PR disaster: a collapsing bridge. Independent experts say the cost of the Commonwealth Games is £4. egalitarianism.34 times the original sum. and by a public body with public money. Government documents seen by Channel 4 News conclude "almost all the organisations executing works for the Commonwealth Games have considered inadmissible factors to jack up the reasonable price". bringing with them money. . The Delhi tube is efficient. On the eve of a spectacle that should have been a showcase for the best in India.2bn . Indians want to know why it took the army to fix a bridge that should have been finished months ago. management accused of fraud. but only if he proves himself capable.100 times more than first thought. They have told Channel 4 News that if there are any unanswered questions. The organising committee and the government have a stock position."My son will inherit my wealth but not necessarily my chair.
for example.94. AED is a portable electronic device that makes automatic diagnosis of the potentially life threatening cardiac arrhythmias in a patient. 100 miles of track. which is also based in New Delhi. Zoll has reportedly procured those equipments from Hanstronics Medical Equipments. Moreover.60 lakh each.040 each) for the first 45 AED machines. has already been stigmatized for the fund diversion and other related issues. They want to know why. In reality. a medical company which was recently exposed in the CWG medical equipment scandal and was not allowed to take part in the tenders. A major medical scam under the umbrella of CWG 2010 has been exposed making the earlier allegations look closer to truth. 8731800 (@ Rs.75 lakh for each trolley bed for the order of 124 trolley beds. it will shed a total of Rs. The law courts.40. all delivered in little over seven years .the same seven years the games organisers spent allegedly wasting time and money. In a recent tender for around 100 AED (Automated External Defibrillator) machines awarded to Zoll Medical Corporation. say Indians. It is to be noted that Surgicoin. Zoll Medical Corporation got the tender via the agent Faith Biotech ltd. which includes all taxes and duties. the same bed is available for Rs 1. . 1 Lac. Reports from the close sources reveal that CWG Cell of Directorate of Health Services (DHS) Government of NCT of Delhi is buying basic medical equipments at exorbitant prices. supplied the same product recently in at much lesser price.4000 for 100 machines. is where the Commonwealth Games went wrong. it will be observed that 1 unit of AED machine costs anywhere between Rs. the prices have been artificially inflated by re-routing it through several agents. Surgicoin had quoted Rs 2. 90000 and Rs. it took the army to fix a bridge that should have been finished months ago. One and a half million passengers a day. Integrity. and some 20 government probes may soon have an answer. If the CWG cell goes ahead with tender. which means it has to pay millions of rupees extra due to artificially inflated rate quoted by the supplier.Ask Indians about pride and they point instead to the Delhi metro. 1. The major sporting event that India is hosting after a long hiatus. it has come to pass that the Commonwealth Games Cell of DHS will have to shell out Rs. If market prices of these equipments are to be assessed. Hanstronics has however. 19.
His monthly profits have been estimated as being in the neighbourhood of Rs 202 crore (slightly more than US $40 million). acquired a stamp paper licence from the Government of India. Abdul Karim Telgi Abdul Karim Telgi (born 1961). and share-broking firms. including banks. Telgi and several associates were sentenced to ten years' rigorous imprisonment. Hours after Telgi pleaded guilty and repented his actions. 2007 Telgi was sentenced to rigorous imprisonment  for 13 years and fined a whopping Rs 202 crore on various counts in one of the main cases of the scandal. This is the harshest punishment given to Telgi in any of the fake stamp paper cases he has been convicted for so far in . is a convicted-counterfeiter from India. he reportedly learned the art of forgery from an expert. On 17 January 2006.  Counterfeiting career He began printing fake stamp paper. The Telgi case brought corruption in the Karnataka police force to light. He appointed 300 people as agents who sold the fakes to bulk purchasers. During his subsequent prison sentence. A videotape emerged in September 2006 of Abdul Karim Telgi taking a Narco Analysis test.At such a critical juncture the common question that arises is why can't the DHS. but was forced to go public with a denial. On June 28. insurance companies. Under the influence of the supposed truth serum. New Delhi buy bulk number of AED devices at lesser price when even common people can avail them. FIs. Judge Chitra Bedi of a special court pronounced the quantum of punishment under various sections of the IPC and the Maharashtra Control of Organised Crimes Act. He was released and. He earned money to the tune of several billion US dollars by printing counterfeit stamp paper in India. Arrest Telgi was arrested in 1991 by Mumbai police for fraud. The size of the scam was estimated to be more than 43. in 1994. causing a national scandal in India.000 Cr Rupees. The scale of his operation and scam can only be matched by the stock market scam of the early 1990s in India done by late Big Bull Harshad Mehta and by the moneylaundering scam of Hasan Ali Khan. Pawar has never been publicly linked to the case. Telgi is said to have blurted out the names of Nationalist Congress Party leaders Sharad Pawar and Chaggan Bhujbal.
The CBI has booked several people including an IIT Delhi professor. have been involved in illegally providing approval to many private engineering colleges across India. The CBI team has been on the All India Council for Technical Education (AICTE) scam for the last 11 months and has finally registered 42 cases againstengineering colleges. Investigations are expected to be over by the end of 2010. who is in judicial custody in Pune. evidently two out of which were non existent. Telgi is HIV positive. Honorable Judge Chitra Bedi observed that she had taken a "lenient view" since Telgi. for submitting wrong reports to the AICTE. Telgi. had pleaded guilty and also because of his health. The site on which the college was supposedly built was farmland.Indian Institutes of Technology (IIT) and the National Institutes of Technology (NIT). the CBI team found a particular college building which was shown to AICTE’s expert committees on three different occasions for obtaining approval for three separate engineering colleges. to rigorous impriosnment for up to six years and imposed fines on them. colleges have been taken approval for from the AICTE while in reality they did not exist and the land shown was farming land. All these colleges are guilty of ‘illegally’ obtaining AICTE’s approval despite the fact that most lack even basic infrastructure and facilities. who too had pleaded guilty. as their investigations move forward. CBI counsel Raja Thakare moved an application in the court seeking the confiscation of Telgi's property to recover the fine slapped on him. NIT profs in AICTE scam The CBI investigators looking into the case of illegal approvals of private engineering colleges all over India have finally dished out a shocker for one and all. The agency is investigating over 100 accused persons across 17 branches of CBI across the country. disciplinary action will be initiated against the others involved as well. including the nation’s best . who broke down earlier in the day while pleading guilty. however. In many similar cases. Harshad Mehta ." CBI finds IIT. Honorable Judge Chitra Bedi sentenced 42 other accused in the case. CBI has been forwarding fresh complaints to the Human Resource Development Ministry (MHRD) for further action on many other colleges of the country as well.Maharashtra and Karnataka. The ministry will refer the doubtful cases which reflect criminal intent of officials back to the CBI. According to the team some professors from top engineering colleges. It is believed that many investigating officers did not even visit the sites before submitting reports and many knowingly visited same sites over and over again. thanked the judge for "giving him justice. The extent of fraud is so much that. after inspecting the site of Rajendra Singh Institute in Aligarh last year.
where was Mehta getting his endless supply of money from? Nobody had a clue.” It was this ready forward deal that Harshad Mehta and his cronies used with great success to channel money from the banking system. But.000 square feet (1. journalist Sucheta Dalal in a column in The Times of India. He died in 2002 with many litigations still pending against him. The borrowing bank actually sells the securities to the lending bank and buys them back at the end of the period of the loan. When the scheme was exposed. who was said to have started the bull run. exposed the dubious ways of Harshad Metha. The broker was dipping illegally into the banking system to finance his buying. The theory basically argues that old companies should be valued on the basis of the amount of money which would be required to create another such company. Stock Market Scandal Mehta gradually rose to become a stock broker on the Bombay Stock Exchange and lived almost like a movie star in a 15. Through the second half of 1991. The RF is in essence a secured short-term (typically 15-day) loan from one bank to another. For those who asked. The shares which attracted attention were those of Associated Cement Company (ACC). Exploiting several loopholes in the banking system. On April 23. causing the collapse. Harshad Mehta was making waves in the stock market.Harshad Mehta ( हरशद मेहता ) was an Indian stockbroker and is alleged to have engineered the rise in the BSE stock exchange in the year 1992. The authors explain: “The crucial mechanism through which the scam was effected was the ready forward (RF) deal. . The year was 1990. the banks started demanding the money back. which ultimately led to his downfall. though that wasn’t the case in the lead-up to the scam. the bank lends against government securities just as a pawnbroker lends against jeweller.400 m2) apartment. He had been buying shares heavily since the beginning of 1990. The broker handles neither the cash nor the securities. Crudely put. The price of ACC was bid up to Rs 10. 1992. which had a swimming pool as well as a golf patch. Mehta was the darling of the business media and earned the sobriquet of the ‘Big Bull’.000. A typical ready forward deal involved two banks brought together by a broker in lieu of a commission. typically at a slightly higher price. Mehta had the replacement cost theory as an explanation. He also had a taste for flashy cars. Harshad and his associates siphoned off funds from inter-bank transactions and bought shares heavily at a premium across many segments. He was later charged with 72 criminal offenses and more than 600 civil action suits were filed against him. triggering a rise in the Sensex. Years had gone by and the driving ambitions of a young man in the faceless crowd had been realised.
When time came to return the money. This game. who then made the payment to the seller. the seller of securities. the shares were sold for a profit and the BR was retired. Once these fake BRs were issued. As the authors write. the seller holds the securities in trust of the buyer. deliveries of securities and payments were made through the broker.000 crore. a BR “confirms the sale of securities. In a ready forward deal. for a fee. Once the scam was exposed though. people would accuse him. they pretended to be undertaking the transactions on behalf of a bank. while the buyer gave the cheque to the broker. It promises to deliver the securities to the buyer.came in handy for this purpose.the Bank of Karad (BOK) and the Metropolitan Co-operative Bank (MCB) . the seller handed over the securities to the broker.“In this settlement process. he was in cahoots with owners of a few companies and recommended only those shares. “Two small and little known banks . Instead. either being known only to the broker.e. When the scam was finally revealed. Mehta needed banks. who passed them to the buyer. or BRs not backed by any government securities. obviously assuming that they were lending against government securities when this was not really the case. To keep up a semblance of legality. did not last long. and no one had a clue about Mehta’s modus operandi. The money due to the bank was returned. Mehta made a brief comeback as a stock market guru. securities were not moved back and forth in actuality.the banking system had been swindled of a whopping Rs 4. This money was used to drive up the prices of stocks in the stock market. the Chairman of the Vijaya Bank committed suicide by jumping from the office roof because he knew that if people come to know about his involvement in issuing cheques to Harshad Mehta.” This the brokers could manage primarily because by now they had become market makers and had started trading on their account. This time around.” the authors point out. These banks were willing to issue BRs as and when required. the borrower. Hence the name . It also states that in the mean time. That is. Another instrument used in a big way was the bank receipt (BR). the buyer and the seller might not even know whom they had traded with. gave the buyer of the securities a BR. i. too. In this settlement process.” Having figured this out. It acts as a receipt for the money received by the selling bank.bank receipt. giving tips on his own website as well as a weekly newspaper column. they were passed on to other banks and the banks in turn gave money to Mehta. a lot of banks were left holding BRs which did not have any value . . The game went on as long as the stock prices kept going up. which issue fake BRs.
surpassing even software czar Azim Premji. the real story behind the entire scam is unknown. He was a Pune-resident and horse trading circles describe him as a smart punter but a small time horse . by the time he died.  Former Union Minister and BJP MP Arun Shourie said that Ali Khan has been known to be connected to underworld don Dawood Ibrahim. Till now. His wife Reema and her brother Faisal Abbas have allegedly helped him hide since 2007. this was further enhanced by the High Court in Mumbai. Philip Anandraj has received an order for the release of his passport from the Mumbai special court for the Prevention of Money Laundering Act (PMLA) last week. and has been responsible for hawala transactions of over Rs. He allegedly stashed US$ 8 billion in his Swiss bank accounts (mostly in UBS) through money-laundering.. and most of it unaccounted. India Today editor Prabhu Chawla said that he doesn't "have much hope" citing that getting Swiss banks to disclose details is not easy as India hasn't signed a treaty with the Swiss government. Claims and allegations Money laundering Officers in investigating agencies in India claimed that this stud farm owner could be the latest unknown rich businessman on the block.Interestingly. Hasan Ali Khan Hasan Ali Khan or Syed mohammed Hassan Ali Khan is a 56-year-old stud-farm owner based in India and allegedly worth USD 8-9 billion or more according to police-authorities.000 crore.000 crore through Swiss banks. 35. known to have been channeling very large amounts from unknown sources into the Indian stock market and had 8 to 9 billion dollars in the UBS and other banks of Switzerland. Disclosing the list of defaulters in the Rajya Sabha on 4th August 2009. The HC has told authorities to hand over Anandaraj's passport by December 7th. His wealth is said to be in the region of anything between USD8-9 billion or much more. When asked if Hassan Ali is likely to be arrested. Mehta had been convicted in only one of the many cases filed against him. the Minister of State for Finance S S Palanimanickam said in a written reply that Hassan Ali Khan tops the list of tax defaulters with an outstanding arrear of more than Rs 50. Some newssources claim that he might be the fourth richest person in India. Khan's lawyer Majid Memon said "his client was not in touch with him" as of 17 August 2008. The recent Hindi movie 'Gafla' showed this scam in a different perspective.
Though he failed he came in contact with a bigger operator called Kanti Das Tapadia (sic). Mugdha Jadhav. He was tasked to get back into the country monies of a deadman locked up in a Singapore bank.”  Other allegations Police sources in Hyderabad aver that he had also laid hands on some jewellery of the family of Nizams and siphoned them off. his main lawyer. whose arms supplies to Tamil terrorists. He has 10 cases lodged against him . sorry. the LTTE.  A year after he was raided. . Milind Sathe. theBritish Virgin Islands and Pune—between an Indian horse owner and a fugitive Saudi arms dealer. the US $8 billion man still roams free i. said his client “regularly appeared before the Directorate”.e. or arranging to throw acid on a paediatrician Dr. His first hawala operation came unstuck. he was a well known but shady figure. Khan’s counsel. who recently claim to have found $8 billion in the Swiss bank accounts of Hasan Ali Khan. P Niranjan Rao of Punjagutta in Hyderabad. the government body that investigates economic crimes. Asked where Khan was.ranging from cheating to con games to extortion. were revealed during an investigation into the 1991 assassination of Rajiv Gandhi. Investigators from the ED. say they now have evidence of a $300 million transfer to him (via a Chase Manhattan bank account in New York) from billionaire Saudi arms dealer Adnan Khashoggi. he has not been arrested till date. The value of the jewellery he pilfered is not known and neither the parties that he sold them to. investigations could collapse." sources said. New York. There a case of in which he is suspected of throwing. according to officials in the Enforcement Directorate. By the time he got into the havala business. said: “Can’t tell you. "There is no police complaint on this because much of the Nizam's riches have gone missing over the years.410 billion  Along with his partner Kashinath Tapuriah. Some newspaper-reports cite that total Indian black money is around US$1.owner. The government has told the Bombay high court that the Khans are “virtually absconding” and if they are allowed to leave India. The reluctance of these top Swiss banks mentioned above to help Indian investigators is slowing the unravelling of an intricate multinational trail of money transfers—across Switzerland. Ali allegedly opened two fictitious companies Autumn Holdings and Paysons in the Virgin Islands and laundered money to the tune of US $280 million.
22 lakh from P Rama Koteswara Rao. had lodged a complaint stating that Hasan Ali had fraudulently withdrawn a total of Rs 26 lakh on three occasions against cheques that later bounced. He was subsequently acquitted and a police commissioner said. Current enquiry As of 13 April 2010. Dr P Niranjan Rao's face was disfigured and he had to undergo 30 surgeries." Khan now faces a whooping Rs 1 L cr fine for acquiring Rs 36000 crores or more in assets. Khan was arrested. 2 crore (USD 500. it has been speculated that the money allegedly deposited by Mr Khan in Swiss Banks in fact belonged to politicians and industrialists and that Mr Khan was only . Investigators say that this only convinces them of Ali's wide range of operations and contacts. but subsequently acquitted in some bank-fraud and similar fraud cases amounting to Rs. Convictions and court-cases The oldest case against Hasan Ali pertained to an acid attack on a doctor. his neighbour. the manager of State Bank of India. Khashoggi is known in India as one of those named in the Jain Commisison of enquiry into the Rajiv Gandhi Assassination and globally for brokering arms deals between the US and Saudi Arabia. What happened: In 1990. Rs 6.35 lakh from Suresh Mehta. Charminar branch. "No case is pending against him as all the previous cases were disposed of by the courts. However. a letter rogatory is to be issued by the magistrate’s court in India to the Swiss police. the central government had announced an amnesty scheme wherein it allowed Indian citizens to get foreign exchange from outside. Ali and his close associate Kashinath Tapuriah then adopted different techniques to try and make this account operational. He had allegedly collected Rs 10. who promised them demand drafts in dollars. The link to Khashoggi adds a new dimension to the investigation into Ali. Rs 36 lakh from T Ramnath and Rs 18. in 1984. A similar case was lodged for defrauding the Grindlays Bank. the customers found the DDs to be fake and lodged complaints with the police in 1992. it is not clear whether Hasan Ali was arrested and acquitted in this case. The Swiss authorities froze the account saying that the Funds were from weapons sale. He then produced 'international money orders' and handed over demand drafts to them to encash the dollars. The Swiss court will decide whether the request by the Indian authorities is to be complied with. Ever since the I-T authorities raided his premises in 2007.000) in the early 1990s. which will present it to the authorities in Switzerland. Since the police could not trace the records relating to the case. convicted. In September 1991. Subsequently at least four persons approached Hasan Ali.Adnan Khashoggi transferred US $300 million from his Chase Manhattan Bank account in New York into Hassan Ali's United Bank of Switzerland account in Zurich.29 lakh from Rajesh Gupta.
the World Bank said it had uncovered "serious incidents" of corruption in a review of five health projects in India. or . an investigation found 36 judges were guilty of receiving gifts bought with money embezzled from the court treasury in Ghaziabad. crockery. and directly led to the defeat of Gandhi's ruling Indian National Congress party in the November 1989 general elections. CORPORATE: In January 2009. HEALTH: In January 2008.a conduit who facilitated the transfer of the money from India. the game's most lucrative tournament. newspapers have said authorities are investigating reports of improprieties in bidding for teams and in negotiating television broadcast rights for the matches. corruption in India is endemic and present in most sectors of society. A probe by the Bretton Woods institution found there were "unacceptable indicators of fraud and corruption" in bank-funded projects for HIV/AIDS. Tax authorities are currently probing the three-year-old Indian Premier League. FACTBOX . taxi fares and other items for the judges. Transparency International. JUDICIARY: In July 2008. Here are six major corruption scandals involving different sectors of society which have hit the headlines: SPORTS: The head of India's $4 billion cricket league. mobiles. The bank review found evidence of bid rigging and other forms of procurement fraud as well as corruption and shoddy auditing.Six major corruption scandals in India NEW DELHI (TrustLaw) – According to global corruption watchdog. Funding for the projects. after a junior government minister resigned following allegations of improper influence. chairman and founder of India's fourthlargest software company Satyam Computer Services. apparently on a commission basis. totalled over $500 million. Raju admitted about $1 billion. a satellite town on the outskirts of the capital. While Modi has not been formally charged and denies any wrongdoing. He is alleged to have laundered millions of rupees from public coffers during his stint as chief minister of Jharkhand between 2006 and 2008. laptops. Koda is accused of possessing assets disproportionate with his income and for alleged money laundering. Tens of millions of rupees were siphoned off from the provident funds of employees by the treasury officer who illegally spent the money on furniture. Ramalinga Raju. which were launched between 1997 and 2003. Madhu Koda. the then Prime Minister Rajiv Gandhi and several other officials were accused of receiving kickbacks from Swedish arms manufacturer AB Bofors for winning a bid to supply India with 400 howitzers. was arrested in connection with a corruption investigation. POLITICS: In November 2009. malaria and tuberculosis. In the 1980’s. resigned after revealing years of accounting fraud in the country’s biggest corporate fraud. Lalit Modi. rail tickets. The scale of the corruption was far worse than any that India had seen before. DEFENCE: The Bofors case has been one of the highest-profile and longest-running criminal investigations in India. was suspended from his post in April following graft allegations in a scandal that has also ensnared politicians. the former chief minister of the eastern state of Jharkhand.
" said a jail official. he was charged with laundering money worth over Rs. He remained confined to his room in the upper division ward. a hotel in Thailand. Gujarat Chief Minister Narendra Modi stated Koda was part of a corrupt network of Congress Party who stole money from Jharkhand. "It was like riding a tiger.30 in the morning. Koda was normal. He was sworn in as the fifth Chief Minister of Jharkhand on September 18. "His behaviour was normal and he did not try to create a scene like his former cabinet colleagues. Khonglam in Meghalaya in 2002. Among others. He later watches news on local TV channels and also goes through newspapers. Koda is the third independent legislator to assume the office of chief minister of an Indian state. it was found that Maoists received a 30% share of the "Koda plunder". assets allegedly worth Rs. Minister of State for Home Ajay Maken said that the Central Bureau of Investigation (CBI) may be asked to probe this scam. . 4000 crore — almost a fifth of the annual budget of the state he once ruled — were unearthed. In nationwide raids by the Enforcement Directorate. Unlike his fellow arrested corrupt politicians who regularly complain of ill health and high blood pressure. 2006 and remained in office until he resigned on 23 August 2008. 4000 crores. including Bishwanath Das in Orissa in 1971 and S. He had eight ministers in his cabinet. Koda wakes up around 6. and a coal mine in Liberia. In the probes.  Life in jail Madu Koda is spending his time in jail like any other prisoner of the Birsa Munda Central Jail at Hotwar. he was succeeded by Shibu Soren. This alleged scam is said to be the second-largest scam uncovered in India in 2009 and gets his name included in the list of controversial Indian businessmen (like Hasan Ali Khan and Harshad Mehta). not knowing how to get off without being eaten. in addition to Enforcement Directorate (ED) and the Income Tax Department. This has led to staunch criticism of Koda from sections of society.94 percent of the cash on the company's books was fictitious. F." said Raju. 1971 in Patratu. West Singhbhum) is an Indian politician who was Chief Minister of Jharkhand from 2006 to 2008. these assets were reported to include hotels and three companies in Mumbai. property in Kolkata. including the oppostition Bharatiya Janata Party." Madhu Koda Madhu Koda (born January 6. "What started as a marginal gap between actual operating profits and the one reflected in the books of accounts continued to grow over the years. Controversies  Money-laundering and mining scam On 10th Oct 2009.
The recent controversy in the IPL has many twists and turns. the IPL's internet rights and what was described as the behavioural pattern of Mr. 2010 The Board of Control for Cricket in India (BCCI) suspended Indian Premier League (IPL) chief Lalit Modi over corruption allegations. However. Modi for a response to the allegation within 15 days. Rumors have swirled that they will hold a special meeting to make an announcement that is expected to fire the suspended head of the IPL. Details On 7 January 2009. BJP also alleged that state support to illegal mining and corruption in Goa’s mining industry had reached ‘unacceptable levels’. Thos answers may be coming because the BCCI has convened a meeting with all 10 IPL franchise representatives on June 24 followed by the League's Governing Council meeting the next day. It is expected that the controversy surrounding Modi and his suspension areto be the focus in these meetings. some implicate Modi and some implicate other IPL related officials. It was reported that the allegations related to the initial bids for the Rajasthan and Punjab team franchises. manipulating the bidding for new franchises and trying to destroy the structure of world and Indian cricket. Modi. Still developing Since Modi’s appeal more accusations have come out. Once the BCCI received a response they promised that they would determine if the suspensions should be dropped or.While he was in jail. Mining for low grade iron ore and manganese is one of the principal industries in the state. if necessary. the IPL's broadcasting deal. the BCCI have denied that any sort of special meeting will take place. alleged bid rigging for two new franchises that will start next year. the BJP (Bharatiya Janata Party) said that they will also expose Goa's Madhu Koda during the forthcoming state legislative assembly session. Massive Indian cricket corruption scandal still unfolding On April 27. In the meantime Modi was served the third show cause notice by the BCCI. It is the hope that within the coming weeks there will be answers instead of more questions. fetching nearly Rs. The 100 mines in Goa export nearly 30 million tonnes of iron ore annually. which raised questions over the awarding of the 150-second commercial slot in between balls during IPL 3. The BCCI had asked Mr. Raju confessed that Satyam's balance sheet of 30 September 2008 contained: . Modi has already replied to two earlier notices served to him by the board accusing him of financial irregularities.6. At this moment the BCCI has yet to hand down a decision in the case of Lalit Modi. when Chairman Ramalinga Raju confessed that Satyam's accounts had been falsified. Satyam scandal The Satyam Computer Services scandal was publicly announced on 7 January 2009.000 crore revenue from exporting the ore to countries like China and Japan. company Chairman Ramalinga Raju resigned after notifying board members and the Securities and Exchange Board of India (SEBI) that Satyam's accounts had been falsified . The meeting with the franchisees has been convened by the BCCI to allow them to get to know the new IPL interim chief Chirayu Amin. what other course of action should take place.
the concern was that poor performance would result in a takeover. He stated that "What started as a marginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years. . an overstated debtors' position of 490 crore (US$110. The senior leaders of Satyam stand united in their commitment to customers. The aborted Maytas acquisition deal was the last attempt to fill the fictitious assets with real ones. "The current board has failed to do what they are supposed to do.6 million) which was non-existent.48 million) in the books).230 crore (US$276. Mynampati's statement on Satyam's website said: "We are obviously shocked by the contents of the letter. thereby exposing the gap. It was like riding a tiger. suppliers and all shareholders. an understated liability of 1. not knowing how to get off without being eaten. Chartered accountants regulator ICAI issued show-cause notice to Satyam's auditor PricewaterhouseCoopers (PwC) on the accounts fudging.***”  Aftermath Raju had appointed a task force to address the Maytas situation in the last few days before revealing the news of the accounting fraud. Raju claimed in the same letter that neither he nor the managing director had benefited financially from the inflated revenues." ICAI President Ved Jain said.13 billion) as against 5. "We have asked PwC to reply within 21 days." said Corporate Affairs Minister Prem Chand Gupta. the Company Law Board decided to bar the current board of Satyam from functioning and appoint 10 nominal directors. He claimed that none of the board members had any knowledge of the situation in which the company was placed.040 crore (US$1." On 10 January 2009.276 crore (US$2. an accrued interest of 376 crore (US$84.75 million) on account of funds was arranged by himself. As the promoters held a small percentage of equity.54 billion) in the September quarter of 2008 and official reserves of 8.21 billion) crore reflected in the books. It has attained unmanageable proportions as the size of company operations grew significantly (annualised revenue run rate of 11.89 billion)).651 crore (US$596.25 million) (as against 2. We have gathered together at Hyderabad to strategize the way forward in light of this startling revelation.361 crore (US$1.392 crore (US$1. After the scandal broke. associates.• • • • inflated figures for cash and bank balances of 5. The credibility of the IT industry should not be allowed to suffer. the thenboard members elected Ram Mynampati to be Satyam's interim CEO.
He was arrested later and kept in judicial custody. Satyam's shares fell to 11. and forgery. The founder of Satyam was arrested two days after he admitted to falsifying the firm's accounts. by March 2009 they were trading around US $1. Price Waterhouse. However. their lowest level since March 1998. is questionable . India's National Stock Exchange has announced that it will remove Satyam from its S&P CNX Nifty 50-share index on 12 January. search . if found guilty. whether employment will continue at precrisis levels.50 rupees on 10 January 2009. SEBI. Analysts in India have termed the Satyam scandal India's own Enron scandal. In New York Stock Exchange Satyam shares peaked in 2008 at US$ 29. family-owned corporate environment (http://kafila. former NASSCOM chief Kiran Karnik and former SEBI member C Achuthan to Satyam's board. the Crime Investigation Department (CID) team picked up Vadlamani Srinivas. Also. compared to a high of 544 rupees in 2008. for questioning. On 11 January 2009. particularly for new recruits. The New York Stock Exchange has halted trading in Satyam stock as of 7 January 2009. Raju had been allegedly withdrawing INR 20 crore rupees every month for paying these 13.On the same day. the Indian division of PricewaterhouseCoopers. the government nominated noted banker Deepak Parekh. Ramalinga Raju is charged with several offences. Some social commentators see it more as a part of a broader problem relating to India's castebased. Satyam's then-CFO. Merrill Lynch now a part of Bank of America and State Farm Insurance terminated its engagement with the company. including criminal conspiracy..000 non-existent employees Tehelka From Wikipedia.000 and not 53. On 22 January 2009.. Credit Suisse suspended its coverage of Satyam. On 14 January 2009. which was stripped from them in the aftermath of the scandal. Immediately following the news. announced that its reliance on potentially false information provided by the management of Satyam may have rendered its audit reports "inaccurate and unreliable". breach of trust. the free encyclopedia Jump to: navigation. The Indian Government has stated that it may provide temporary direct or indirect liquidity support to the company. Satyam was the 2008 winner of the coveted Golden Peacock Award for Corporate Governance under Risk Management and Compliance Issues.org/2009/02/13/the-caste-of-ascam-a-thousand-satyams-in-the-making/). CID told in court that the actual number of employees is only 40. the stock market regulator.80.10.000 as reported earlier and that Mr. also said that. its license to work in India may be revoked. It was also reported that Satyam's auditing firm PricewaterhouseCoopers will be scrutinized for complicity in this scandal.
called Operation Westend that got it the international attention. Part of the tapes show the treasurer of his party talking about accepting bribes of 1 crore or more from arms dealer ex-Naval officer Lt-Cmdr Suresh Nanda. then a startup media firm. was exhausted by legal expenses facing a Commission of Enquiry. it got public attention. By 2003. It set up a bogus London-based company. The tapes were sent to UK for forensic examination. there was an outcry. son of ex-Chief of Naval Staff Admiral S. Tehelka also met Jaya Jaitly. Laxman also resigned. Nanda. Tehelka claimed to have filmed Bangaru Laxman (the secretary of the ruling party BJP) taking bribe for helping the bogus company in procuring government contracts. According to the Editor Shoma Chaudhury. Tarun Tejpal. the number of salaried employees in the company had reduced from 120 to 1.Tehelka is an Indian weekly magazine under the editorship of Tarun Tejpal. Tehelka's editor-in-chief. Tehelka. When the scandal broke. and George Fernandes resigned (although he wasn't accused of taking bribe). During the process. It also accused the MoD officials of accepting alcohol and services of the prostitutes. the National Democratic Alliance. The minister in charge of Defence. the head of Samata Party. It showed several political figures.[3 History In 2001. while Jaya Jaitly accused Tehelka journalists of being Pakistani agents and raised doubts over the authenticity of the tapes. and the company was practically ruined. The meager budget of Tehelka. In 2001. which led to the resignation of Indian Defence Minister. as well as army top brass. colluding to take bribes that approached 4% of orders totalling hundreds of crores in order to approve defense contracts. Tehelka decided to bow out of the new Commission of Enquiry. and contacted MoD officials for selling thermal binoculars to the Government of India. resigned after the tapes were made public. with an exposé of match-fixing in professional cricket in India.com. but he was reinstated later. The publication began in 2000 as a news website. George Fernandes of the Samata Party. M. but it was the defense sting. . after Justice Venkatswami was replaced with Justice Phookan Operation West End Operation West End was a sting operation aimed to expose the corruption underlying India's large defence contracts. headed by Bharatiya Janata Party's Atal Behari Vajpayee. and a close aide of the defense minister George Fernandes. The original investigative piece by Tehelka in 2001 targeted several members of the then ruling coalition. and were confirmed as genuine. Tehelka launchced Operation West End to expose the alleged culture of bribery at the Ministry of Defence (India) (MoD). In September 2001. The main financial backers of Tehelka were made targets of investigations from the customs. was charged with "immoral trafficking" for offering prostitutes to the MoD officials during the sting operation. the police and the tax authorities.
Tehelka as Metaphor. . Madhu Trehan. In 2004. claiming that there was reasonable basis to suspect corruption and criminal conspiracy. has penned down an entire book on the expose and its aftermath. the Central Bureau of Investigation filed charges against George Fernandes. but agreed after Mathew Samuel initiated the sting. accused Tehelka of fabricating allegations. Both editor Tarun Tejpal and editor investigation Aniruddha Bahal did not initially support the sting operation. The book. and others in the Barak missile case. Art Silverblatt and Nikolai Zlobin described Tehelka as a "muckraking site" in their book "International Communications: A Media Literacy Approach. instead of acting on the evidence. the Nandas were arrested. former Chief of Naval Staff Admiral Sushil Kumar. Veteran Indian journalist. However. In the Tehelka tapes. the reporter (usually Mathew Samuel) poses as a representative of the fictitious large arms supplier West End. In March 2008.Initially the government. in October 2006. five years later. is a forensic study of the sting operation and how the Indian government got back by attempting to destroy Tehelka and its investors. Fernandes was interrogated in May 2008. There were a total of 105 tapes shot by Mathew Samuel Tehelka in media The Tehelka expose has been documented time and again through various media sources.
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