" It will work, if you forget all the reasons that it won't"

Thursday, July 14, 2011

A to Z of Indian Scams

[A]DARSH HOUSING SOCIETY SCAM:
The bottom tip of Mumbai city is not available for sale at any price because it is strategically important for the safeguard of the nation and hence occupied by the military.

The promoters of the Adarsh housing society played a trump card in the name of “flats for Kargil War Heroes” and formed a cooperative society not only to get the necessary permission to construct the apartment but also to avail various concessions from the government.

The project got a nod from virtually everyone in the hierarchy right from the Chief Minister of the state to General under whose direct command the construction site was located, the collector, the revenue minister, 2 Ex-Army Chiefs and everyone else down the line. The caution was thrown in air.

As a result a modest six floor project started in the name of war heroes who laid down their lives for our nation, became a mega condominium 31 stories high with more than a hundred super deluxe apartments for its privileged owners of which only 3 Kargil martyrs were allotted flats in the society.

Jai Hind!!!!


[B]ELEKERI PORT SCAM (Rs 60.000 crores)
The Belekeri port scam relates to 3.5 million tons of iron ore that was being illegally exported from Belekeri Port near Karwar in Karnataka and was confiscated by Deputy Conservator of Forest R. Gokul.

When the illegal mining came to light, High court of Karnataka put a stay order on any kind of export of iron ores from the state. But despite the court’s order the iron ore continued to be mined illegally and then exported. The men behind the crime were none other than the mighty brothers of Bellary who themselves are a part of the present Karnataka Government.

Unlike our hindi films where the hero wins in the end (irrespective of the might of the villain), the person punished was none other than honest Deputy Conservator of Forest R. Gokul.

[C]OMMON WEALTH GAMES SCAM (Rs 8,000 crores)
Samuel Johnson once said “Patriotism is the last refuge of the scoundrel”.

His words are very much relevant in the way Common Wealth Games were carried out by Mr. Kalmadi and his associates.Politicians and bureaucrats in the organising committee spent a jaw dropping Rs 1000 Crore in renovating a single stadium (on the contrary Eden Gardens in Kolkatta, a bigger stadium, was recently renovated for just Rs 80 crore), hired Cars and Vans at exorbitant prices and awarded contracts for everything from treadmills for athletes to broadcasting rights for worldwide audience via verbal agreements. A thing that was available for Rs X was bought for Rs 10X. Also the quality of the workmanship was so poor that, the roofs and walls of the stadiums began to collapse even bef0ore the games started.

The urban development minister still had the audacity to say these stadiums will leave behind a rich legacy! Point noted sir RICH LEGACY



[D]HOTI-SAREE SCAM : (Rs 210 crores)
Starring Lalu Prasad Yadav.

Under a scheme floated in 1995 each BPL family in Bihar was supposed to get a pair of Dhoti and Saree every year. Against the objection raised by the State Vigilance Commission, The Government of Bihar awarded the contract for supplying dhotis aand sarees for 66 lakh families to a cooperative society with a reason to increase the employment opportunities in the rural areas.


Now here is the punch. The cooperative society “ favored by the government” took the advance and in turn outsourced the work to a power loom factory in Nagpur and got the dhotis and sarees made at a cheaper cost (and obviously of inferior qualty).

Who says only multinational takes advantage of the outsourcing?


[E]NRON SCAM: (Rs 1,30,500 crores)
Built on a harsh terrain, 320 Kms from then Bombay, The Dabhol Power Plant was supposed to be the world’s largest natural gas based power plant. Today, 19 years after it was conceived, the site is rusting ghost town with deserted roads and buildings.

Enron is a classic example in the post liberalisation era of how big multinationals get their project sanctioned by using political influences and bribes, only to suffer later at the hand of the fickle minded Indian government.

This “unviable” project was initiated when a dollar was available for Rs 32. Continuous rise in the cost of Naptha (the fuel) resulted in the escalation of cost/unit of power generated, many times than was decided in the contract with the government. Its sole customer, Maharashtra Electricity Board, refused to pay for the electricity it consumed leaving Enron with a debt of more than $ 1.5 billion to Indian financial institutions. The mega project had to shut down.

“The truth is that those who negotiated the deal did not protect the interests of the state or the nation, and went on a signing spree, succumbing to Enron's pressure,” said Murli Deora, former petroleum minister.

[F]ODDER SCAM (950 Crores)

The fodder scam (or chara ghotala) has become symbolic of bureaucratic corruption and the criminalization of politics in India. Though scandal broke only in 1996, the scam was going on since past two decades in Bihar and involved various successive chief ministers of the state including Lalu Prasad Yadav.

The government administrative and the elected members were involved in the embezzlement of the state treasures. They fabricated the record books of government animal husbandry department with fodder, medicines and animal husbandry equipments bought for “fictitious animals”.

P. S. - Laloo Prasad Yadav is the only person on whom the Lok Sabha debated for a complete session as the official agenda.


[G]EGONG APANG PDS SCAM: (Rs 1000 crores)
Chief Minister of Arunachal Pradesh for 23 years, Gegong Apang had enough experience to find ways of minting money.

While investigations were going on in the neighboring state of Assam for an alleged PDS scam, Investigators came across a false and inflated bills for procurement and transportation of food grains meant for public distribution system. It was found Gegong with some businessmen from Assam were the main accused.

Today Mr. Gegong is 62 and he has enough funds in his accounts to fight legal battles for the next 28 years (May he live for 100 years)


[H]AWALA SCAM: (Rs 5000 crores)
How does hawala system work? A customer approaches a hawala broker in one city and gives a sum of money to be transferred to a recipient in another, usually a foreign city. The hawala broker calls another hawala broker in the recipient's city, gives disposition instructions of the funds (usually minus a small commission), and promises to settle the debt at a later date.

This is advantageous to businessmen because it involves fast and convenient money transfer with far lower commissions to be paid to the hawala brokers as compared to banks and also without worrying for
tax, immigration or any other concerns. Businessmen can easily transfer their black money at safe locations away from the sight of the regulatory authority.

Some of the businessmen (oops!!! I meant politicians) accused in the scam included L.K. Advani, Sharad Yadav and Delhi’s former chief minister Madan Lal Khurana.


[I]NDIAN BANK: (Rs 1336 crores)
Indian Bank scam is a suspense thriller having two men in lead : bank’s former CMD M.Gopalakrishnan and Singapore-based NRI and cashew nut exporter Muthukrishna Varatha Raja (MVR). The suspense in the case is still intact; CBI is still finding clues to solve the case. And the money involved in the scam was supposedly used to carry out the thrilling bomb blast in which the former PM Rajiv Gandhi was assassinated.

The main defaulter of the bank, MV Raja, received a massive credit from the bank without any verification and approved by the CMD M. Gopalakrishnan. The money received was diverted to 5 of his benami company in Netherland. Kumaran Padmanabha, relative of LTTE chief V. Prabhakaran, was allegedly director of one of the companies to which money was transferred. He was suspected of supplying explosives to Chennai from Singapore for Rajiv Gandhi's assassination.

Coincidentally M. Gopalakrishna was granted eight extensions during 1993-95. A report was ordered to prepare by a committee of secretaries under the chairmanship of the cabinet secretary as to why despite of allegation of money laundering against him, why was he granted 8 extentions. The initial reports have suggested that the then finance minister, Manmohan Singh was in favor of the extensions and the orders on all occasions had come from the PMO. Deja vu!

[J]MM BRIBERY SCAM: (Rs 80 crores)
The power that kursi yields tends to infinity. And people running in this race can do anything to get it. Its the ultimate high. After that there is nothing wrong, only the person on the chair is right. But its the race to that kursi that makes politics a dirty game.

In this classic case of JMM Bribery scam that took place in 1995, former PM Narsimah Rao’s kursi was in the risk of being snatched away. There was a need to support gather for the crumbling congress government. Hence to save itself from crumbling, congress (with Manmohan Singh as a finance minister) paid bribery to Jharkhand Mukti Morcha Chief Shibu Sorena and 3 other MPs from the party so that they vote in favour of Congress.

As per the Indian laws, the bribe taker is a killer and not the giver, as a result Shibu Soren was put behind the bars while the congress was left free. Check-Mate.


[M]ADHU KODA MINING SCAM: (Rs 4000 crores)
This one is a rags to riches story of a tribal farmer’s boy, who decided to join politics after experiencing corruption in iron industry. 9 years after he won his first assembly election seat, when CBI raided his property all over India, he was found to have assets worth few thousands of crores which included hotels and 3 companies in Mumbai, properties in Kolkata, a hotel in Thailand and.. A COAL MINE IN LIBERIA.
This all Only NINE YEARS after being elected for the first time!!! The rate at which he and his associates were laundering money took the entire nation (including the political circle) by a surprise. Investigators also found note counting machine at his residence, the kind of machines we see in banks. This alleged scam is said to be the second-largest scam uncovered in India in 2009.

Just 9 years after he joined politics...

Koda’s father always wanted him to be a farmer or an iron worker and to have a "normal life”.

[N]AGARWALA SCAM: (Rs 60 Lakhs, 1971)
On 24th May 1971, the then Prime Minister Indira Gandhi supposedly called up the chief cashier, Ved Prakash Malhotra in State Bank of India, Parliament street branch in Delhi to give Rs 60 Lakhs to a Bangladesh ka babu. When cashier sahib went in person to Indira Gandhi’s personal secretary to collect receipt of transaction, he was informed that Ms. Gandhi had never made such a call!

On investigation it was found out that former Army Captain Rustom Sohrab Nagarwala had collected that money from Ved Prakash by “mimicking the voice of Indira Gandhi”on phone. Rs 60 lakh that he collected was diverted to Mukti-Bahini – a guerrilla organisation fighting against West Pakistan during the Bangladesh Liberation War.

Nagarwala was sentenced for four years and died in prison due to “deliberate neglect” of his increasing ill-health.

[O]IL FOR FOOD SCAM
K. Natwar Singh of UPA-1 used his External Affair portfolio to have an affair (and its not alleged) with none other than Saddam Hussain!

Oil-for-food program initiated by US President Bill Clinton in 1995 was meant to give the general citizens of Iraq basic necessities of life like food, medicines, etc (in exchange of oil) which Iraq could not obtain from the outside world due to sanctions imposed on her post Gulf war.


Natwar Singh (along with his son and his son’s childhood friend) used his official visit to the country to obtain “oil coupons” which they in turn sold it to a Swiss firm named Masefield in return of “Surcharge” paid to Saddam Hussain and Natwar Singh.

Thus it wasn't the common man in Iraq but K. Natwar Singh who became the ultimate beneficiary of the Oil-for-Food program.


[P]ALMOLEIN OIL IMPORT SCAM: (Rs 2.32 Crores)
No one is a holy cow in the Indian democracy, not even its vigilance officers.

In yet another case of high level of corruption, the Kerala cabinet approved the import of 15,000 tonnes of Palmolein Oil from a Malaysian firm in Singapore at a cost of $ 405 per tonnes, higher than it was available internationally at $ 392.25 crores per tonnes causing a loss of more than Rs 2.32 crores to the exchequer.

Former Chief Vigilance Commissioner P J Thomas was found accused by the Supreme Court in this case.



[Q]UARRY SCAM (Rs 2000 Crores)
RTI activist Vijay Kumbhar exploring with the idea of using abandoned land quarries around Pune to use it as land fill sites for the disposal of city’s garbage, came to know about the looting of precious natural resources of our country when the Mining Officer in the Collector’s office declined to give him information about the abandoned sites.

It seems the authorities responsible do not keep any records of the mining activities that take place in the region. There are no records of active mining sites nor for abandoned sites. The rare stones that are found in the excavation are sold openly in the internet sites like www.irocks.com, www.mindat.com for as high as $ 3000. The government website reports that any such rare stone found by the excavator should be first informed to authorities, which never happens. (Just for record the government website was last updated on September 2009).

Vijay Kumbhar in his letter to collector of Pune also mentioned that the quarries dug are as deep as 100 metres, that can also be seen from a satellite. Also they are having negative impact on the environment and the wildlife. Sahayadri hills have been completely destroyed. Above all the various excavators need to pay royalties to the government for using this rare natural resources which amounts to Rs 2000 crores, but there exists no such record of royalties paid to the government.

And this is just a tip of the iceberg, when the mining activity is being carried out in the entire country.



[R]ICE SCAM (Rs 2,00,000 Crores)
Through my investigations I found out that there exist many rice scams where the involved party flouted the procedures and earned money out of it. Out of the many rice scams in the country, two of them specifically caught my attention for the astounding figures involved in one of them and the brain behind the second.

During the rule of Samajwadi Party in Uttar Pradesh, the rice stocked up to be served under various mid-day meals for poor children were illegally exported out of Uttar Pradesh to various states in India and neighboring countries. Quite obvious to all scams, the scam involved everyone from chief minister to bureaucrats at various levels. What astounded me the scam that involved goofing up of about 2,00,000 Crores stretched for 7 years and about 300 FIRs were filled in this period for the same! CBI which has taken the task of finding out the corrupt says this scam could be even worse than 2G scam.

In the second case of rice scam, which took place in 2008-09, the central government first passed a law banning the export of non-basmati rice in a view to curtail the rising infaltion and food security (Experts who feared a food crises in the country applauded the move).

Since India is a major exporter of rice to the world, the ban lead to the increase in the cost of rice in international market-from $ 350 to a peak of $ 1000 per metric tonnes. Then followed a chain of events in which guidelines were flouted and rules bypassed by state-owned trading companies to allow select private rice-exporting companies (obviously owned by people who had a friend in the government) to export rice at almost triple the price. They simply walked away with business worth Rs 2,500 crore. 21 African nations were shortlisted by the centre in whose name the government claims they exported rice that too on "humanitarian grounds".

I just love the way our leaders apply their brains to earn money.


[S]TAMP PAPER SCAM (Rs 20,000 Crores)
Yet another rags to riches story after Madhu Koda. But this man has made himself immortal in the history of India of post independent era, probably only Harshad Mehta and Ali Hassan could give him some competition.

Abdul Karim Telgi who paid for his own education at Sarvodaya Vidyalaya, by selling fruits and vegetables on trains, took counterfeiting as his career after returning from Saudi Arabia.

After starting with fake passports he diversified to counterfeit stamp papers and sold them in to bulk purchasers, including banks, insurance companies, and share-broking firms.

The Rs 20,000 Crores scam began to unearth when a police officer involved with Telgi, having a monthly salary of mere Rs 9000 was found to be of a net worth of Rs 100 crores, while Mr. Telgi had already purchased half of Brigade Road.


[T]AJ CORRIDOR SCAM (Rs 175 Crores)
While her counter parts across the nation were selling rare natural resources, prime lands and rice, she sold the Taj Mahal.

Taj Corridor Project was initiated during the last tenure of then chief minister of state Mayawati to upgrade the facilities for tourists near the Taj Mahal site. The projects that was to cost Rs 175 crores and was initiated with a backing from BJP leaders(supposedly in exchange of protection of BJP leadersL.K. Advani, Murli Manohar Joshi and Uma Bharti from prosecution in the case of the demolition of the Babri Masjid) who were ruling the central government then.

CBI found out that Mayawati has been enriching herself with the money allocated for this project and buying lands in the name of herself and her relatives.

There is hardly any progress in the case. The Supreme Court of India has to give a wake up calls at regular intervals to our Sherlock Holmes (read CBI) regarding the case, while they keep pressing snooze.


[U]REA SCAM (Rs 133 Crores)

India Today in its issues of December 14, 1998 described it as a “comic situation” since P.V. Prabhakar Rao, the youngest son of former prime minister P.V. Narasimha Rao, accused in the case, had evaded arrest for years despite having a non-bailable warrant against him and investigating agencies "struggled" to trace him; Prabhakar was provided Special Protection Group (SPG) cover at the same time by the government itself. In their argument SPG claims that their job is to protect VVIPs and telling Prabhaka’s whereabouts would have been a violation to the rule.

Speaking of scam, it was just like many of the above written scams. P. V Narsimha Rao government has floated a global tender of 2 lakh tonnes of urea in September 1995. National Fertilizers Limited CMD C. K Ramakrishnan (who was appointed by PM himself) awarded the contract without following any procedure and advanced the entire amount of Rs 133 crores to Karsan without any bank guarantees. The Swiss bank which received an invoice for making payment to Karsan, raised certain objections about the transaction and sent it back. But there was no response from RBI, SBI or NFL.

The money was transferred to Turkey by executives of Karsan and is now untraceable. Prabhakar Rao was never touched by CBI despite his major role and a non-bailable arrest warrant against him. And the urea ordered in 1995 is yet to be delivered.


[V]ETERINARY SCAM

The otherwise quiet and recluse atmosphere of Guru Angad Dev Veterinary and Animal Sciences University (GADVASU), in Ludhiana, Punjab was rocked by a scam that emerged from the Animal Husbandry department of the university. While the magnitude of the scam may not be too big, yet it did raise many eyebrows.

The scam is related to the preparation of a mineral mixture given to milch animals to make up for any deficiencies. This mixture is prepared by the Department of Animal Husbandry (GADVASU) and is very popular among dairy farmers.

A preliminary inquiry conducted found a plethora of irregularities in this scheme — from misappropriation of funds, to materials falling way short of what it should be as per records, to indiscipline.

Needless to say, the culprit is yet to be booked for his crime.


[W]HEAT SCAM

Sharadchandra Govindrao Pawar (popularly known as Sharad Pawar), Minister of Agriculture in the present Indian government imported low quality red wheat from Australia for distributing it among the poor people under PDS. Red wheat which is an inferior quality of wheat is considered unfit for human consumption. Beside being an inferior quality of wheat, he imported this wheat overlooking the wheat that was available with Indian farmers and was available at half the price (just for record Mr Pawar is also a Minister of Consumer Affairs).

For a man who is the head of a ruling party in Maharashtra, takes care of cricket in India, heads International Cricket Counsel, a member of Empowered Group of Minister beside taking care of Agriculture and Consumer Affairs in India must define his priorities its high time.


[X]EROX SCAM (Rs 3.15 Crores)

It is common knowledge that corp orates indulge in "improper payments'' in a routine fashion for their own profit motives, just as in case of Enron described above. But it was during Xerox scam that for the first time such payments had been formally acknowledged.

In july 2002, while the Xerox Corporation was already facing allegation of financial irregularities of over $ 2 Billion by US Securities and Exchange commission, their Indian venture disclosed that they had made “improper payments” to government officials and fictitious firms linked to sales of Xerox equipment to Government agencies in India.

Xerox, whose name is a virtual synonym for the term photocopy, is a joint venture between US based Xerox Corp. and Indian ModiCorp (now Spice group).


[Y]ELERU LAND SCAM (Rs 2.5 Crores)

Mr Chandrababu Naidu also made hay while the sun was shining at him.

It is alleged that the then chief minister of Andhra Pradesh, Chandrababu Naidu and his ministers in the cabinet had received kickbacks in the the sale of land in Yeleru, Andhra Pradesh.

Just another land scam, nothing extraordinary about it.



[Z]OO SCAM

I was expecting a scam related to zebras when I started searching the internet for a scam with the letter Z; I found an entire zoo.

In 2009 West Bengal Zoo Authority was formed. As per society memorandum, all the state zoos were supposed to run under the absolute control of the society. The humour lies in the fact that the members of the society were either IAS or IFS, no zoologist, applied biologist, naturalist, conservationist or wildlifer was included in the governing body.

Needless to say the formation of such societies only leads to further irregularities (financial and otherwise). Like for example, tenders were floated for construction of ticket plazas in one of the zoos and without any consideration were directly given away to a Delhi based company. There is a standing order from the Finance department, West Bengal that not to engage any casual/daily rated worker but the director of the society hardily bothered and engaged a number of daily labors and casual staffs.