Saturday, September 26, 2015





If you did not read earlier blogs in this series please click on


As Bihar enters the decisive phase, it is meet we discuss the good work done by NDA government led by Narendra Modi. Readers of the blog are welcome, if they feel there are shortcomings, they can send comments. I will analyze.  It will be preposterous to compare Modi performance with Nitish performance as Nitish ruled Bihar for ten years, he was ably supported by BJP, both worked in a very hostile atmosphere with UPA at the Centre, creating hurdles and not helping the state. The negative role played by Lalu and Company can not be underestimated. So, let us confine to Modi rule though Nitish too did good work to develop a state ridden by violence, crime, fraud, scams and corruption at higher levels when he took over. He did a good job before three Witches appeared as in Macbeth to hail him "KING OF INDIA". Ambition took over the good sense. His downfall started and will end in November this year.

(From Part 1)

In my previous blog I dealt with what the nation lost, what kind of a fractured nation, dispirited body politic and ruined economy were handed over to Modi. Though we can not identify the forces at work to destabilize the nation to escape the noose that is tightening by the day around necks of the scam tainted and the corrupt, we are sure such forces are at work. One reason is that the present supreme political leader is incorruptible, getting strengthened by the day and is being appreciated as world leader that will take India to the pinnacle of growth both economically and culturally. The new Black Money Act is sending shivers in the spines of people who accumulated black money.

(From Part 2)

“It is impossible to know when and how much water a fish drank, similar is the act of stealing government money by officials.” 


Part three deals what Modi inherited in the form of political debauchery, corrupt bureaucracy, irresponsible politicos, silent PM, rule by the inept and inefficient, by proxy from outside. free- for-all federalism, scam tainted higher echelons of power, toothless investigating agencies with almost all heads of these agencies led by caged parrots and an inactive and sometimes pliant judiciary. 

"Kautilya reflected serious concerns about opacity in the operations of the world of the corrupt. Illegal transactions were so shrouded in mist that he compared embezzlers to fish moving under water and the virtual impossibility of detecting when exactly the fish is drinking water. He also noted that while it is possible to ascertain the movements of bird flying in the sky, it is difficult to gauge the corrupt activities of government officials."

He realized its inevitability but chose to remain positive and committed to root it out in the administration through elaborate and strict measures. This is the real significance of the Arthashastra as far as the issue of corruption in contemporary times is concerned.


Now onto Part 4.

As I was about to embark on Part 4 that deals with the legacy of a corrupt past, pat comes this news today.

It is self-explanatory. Today, it is his daughter's marriage. It may sound discourteous. But it is the right thing to do. Truth comes out on such occasions easily. I do not know about thick-skinned politicos. I was once sitting in a big Finance Company Office with the boss. A delinquent client came requesting release of his car seized by the Company as that day he was performing daughter's marriage. The Boss directed them to Recoveries Section. They came inside.

" Boss! What shall we do?"

"Do not release the car. Within an hour he will beg, borrow or steal and pay. If you miss today, he will not be seen nor the car"

He asked me to wait. Yes! Within half hour he repaid the entire loan and took his car back. Issue of prestige. So, those detractors in Media who say CBI is harsh, just spit on their faces. This is going to happen in India more times. If you find any corrupt person in your vicinity, call CBI. You are safer now. I will do that with vigor and I have started already.


Indira Gandhi said in the '70s that corruption was a global phenomenon and she had no magic wand. But she had. The infamous Nagarwala case that never saw the light of the day, was a classic example. It was not bribery, it was not swindling, it was not scam. It was just what you call mid-noon theft. He was killed. Case was closed. All was in the HAND. 

None can deny corruption is global. But it is only in India that funds are allotted in the name of poor through schemes and through which scams are perpetuated. It is only in India that natural resources are allocated to swallow funds and the resources never reach the people. It is only in India, houses are said to be constructed in the name of poor but no houses exist. It is only in India that irrigation projects are planned, funds released but no canal is dug, no water is provided. Only in India, land is seized by changing laws by members of dynasty and the honest officer who questioned would be haunted. Only in India a ruling party can forcibly occupy the leased premises of a News Paper and misuse funds with no audit. To quote there are many. I started with corruption at state level and gave examples of three Congress ruled states last time.

In India corruption can be classified into various categories.

1. Bribery:

This is all pervading. And the person who pays bribe or receives it has no party affiliation. His only aim is to build an empire of his own. This can not be eradicated overnight. This was a malaise inherited by Modi Sarkar. As Chanakya said these were fish drinking water in an ocean. No CAG can estimate the amount swallowed. 

How does this effect the body politic?. It effects. If an engineer takes bribes and allows low quality infra, the infra will collapse. People lose lives. If a policeman takes bribe and allows a drunk driver, he kills. If a banker takes bribes and finances, lakhs of crores of tax money gets stuck, economy is ruined.

Affirmative Action by Modi: 

As a first step he removed the middle men in the higher bureaucracy and ministries. He did not leave choice to Ministers to appoint Personal staff. These had been the breeding grounds for the corrupt viruses. Next, he asked all officers/staff with pending charges, inept, inefficient to retire early, with full benefits, but with a rider that investigations would continue. Wherever possible, he installed CC cameras and strengthened intelligence gathering. In Chanakya Rajaneeti, Sama, Daana. Bheada, Danda are the four steps. He tried with good words. He offered them retirement choice if they proved innocent.He tried to create the needed wedge between the news peddlers. relations of ministers, sources in ministries and employed the most professional methods in booking the persons who were selling files for a price. This is the beginning. Once the message reaches down, the incorrigible will receive the Danda, Punishment. In the meantime, it is our duty to help the government move slowly and cautiously before the big fish is brought to book, as there is a habit in India to gain sympathy. Now, we see what Lalu is trying.

2. Schemes for Scams: 

This is the method invented during Indira regime. Announce a scheme for poor. Name it after The great leader from the family. Show Moon in the morning. Steal the Moon and Stars in the night. PDS, MGNREGA, JNURM, IRDP, Twenty point Program, 12 point Program, Indira Awas YojanaAdhaar Card issue, small loans under DRI, (@4%), Crop Insurance schemes, Cattle Insurance Schemes, SC, ST, Minority welfare. Name any. Crores of crores were swindled in sixty years. If all these funds reached real beneficiaries India would have won over poverty long back

Affirmative Action: 

Adhaar issue was streamlined. Bank Accounts were opened. One by one, subsidy is getting credited to account avoiding duplication, triplication, quadruplication, multiplication in fund's use. A whopping Rs.20,000/- cr is being saved on LPG subsidy this year alone means, the country would have lost 2.00 lakhs crores in a decade. 25 lakh bogus LPG connections were removed. Middle classes are opting out of subsidy. If all other subsidies are credited to accounts directly, the nation will be able to mop up anywhere above Rs.10 lakh crore in a decade on the subsidy alone. Steps are on to credit fertilizer subsidy that will save enormous amount.

3. Natural Resources:

Image result for five elements of nature images

Earth (Land), Water, Air, Sky and Fire form the five elements of earth. There were land scams, there were irrigation scams, there were Spectrum Scams, there were Space scams, there were mining and coal scams. It started in 1948 and hopefully ended in 2014. There was no element untouched, no element missed, no fund left  not embezzled. All was done in the name of poor. And 67% of Indians, as per their Planning Commission records, remained poor.

Affirmative Action: 

Old allocations were cancelled, wherever possible. New transparent auctions yielded substantial income. More is to follow. One by one, all the criminals are being booked. Hopefully, by 2022 all will be, where they should be.

4.Money Laundering:

This is one of the biggest crimes world wide. India earned the notorious reputation of being in the forefront. Earn illegal money, stash away abroad in Tax Havens, float bogus companies. Get back the money in the form of shares at huge premium. This is one method. These Companies vanish overnight. Money remains here. More assets are purchased. 

Affirmative Action:

New Black Money Act was brought with stringent punishment to evaders of tax and illegal assets, cash. Time was given till 30th September for voluntary disclosure. Government expects Rs.20,000 crores as taxes through these disclosures. We will know. It was rumored even NDTV was issued notice. Big fish are facing the heat. As the date closes, raids are on rise. Crores of cash stashed has been confiscated. More is to follow. Unable to feel the heat, fresh issues are coming to fore. Agitations are on the rise. Statements that border on sedition are becoming order of the day. This is a no-nonsense government. Without pain to populace, people are being counselled or crushed as per the need. States are now more pro-active, except few black sheep. Even Congress ruled states are on war path with their High Command. They want their political future safe. The third Sutra, Bheada!

Major Scams in a nut-shell: 

1951: The Mundra Scandal. 

This was the first big scandal that brought the rift in Nehru family into the open. Despite Nehru cautioning, the fire brand Feroz, raised the issue in Parliament. Haridas Mundra, a light-bulb salesman-turned billionaire, forced LIC of India to invest Rs.12.4 mn Rupees in his six defunct Companies.  

"Parliament must exercise vigilance and control over the biggest and most powerful financial institution it has created, the Life Insurance Corporation of India, whose misapplication of public funds we shall scrutinize today." Feroze Gandhi, Speech in Parliament, on 1957-12-16.[3]

And his grand son mocks PM Modi Jee as Chaiwala.

1971: Nagarwala Scandal:

On 21 May 1971, Nagarwala called Malhotra at the State Bank of India, and imitated then Prime Minister Indira Gandhi. Nagarwala claimed that the Prime Minister immediately needed Rs 60 lakhs. Some sources reported that the money was needed for a "secret mission to Bangladesh", while others reported more simply that the money was requested for a "man from Bangladesh".
Within less than one day, Nagarwala was found and arrested, and the majority of the money was recovered. Malhotra allegedly confessed to the crime on 26 May, within five days, and was convicted in a ten-minute court trial. In his book on investigative journalism, S.K. Aggarwal called the speed of this trial "unique in legal history".[1] Nagarwala was sentenced to four years imprisonment and died while in custody.
You can draw inferences or forget it as another scam in scams. It was a mystery, trial was completed in just TEN (10) minutes in Court, after five days of committing the crime. Read beyond lines.

1981: AR Antulay Cement Scam involving Rs.300 mn.

He resigned as Chief Minister of Maharashtra after the Bombay High Court convicted him of extortion on 13 January 1982. The court ruled that Antulay had illegally required Mumbai area builders to make donations to Indira Gandhi Pristhan trust, one of several trust funds he had established and controlled, in exchange for receiving more cement than the quota allotted to them by the Government.

1987: BOFORS Scandal.

You all know this. 
The Swedish company paid 640 million (US$9.7 million) in kickbacks to top Indian politicians and key defence officials.was revealed through investigative journalism tipped off by a Reuters news revelation on Swedish radio, followed up by a team led by N. Ram of the newspaper The Hindu. The journalist who secured the over 350 documents that detailed the payoffs was Chitra Subramaniam reporting for The Hindu. Later the articles were published in The Indian Express and The Statesman when The Hindu stopped publishing stories about the Bofors scandal under immense government pressure and Chitra Subramaniam moved to the two newspapers. In an interview with her, published in "The Hoot" in April 2012 on the 25th anniversary of the revelations,[5] Sten Lindstrom, former chief of Swedish police discussed why he leaked the documents to her and the role of whistle-blowers in a democracy.
I was regularly reading her and the other reporter's revelations. The Account Numbers. I saw BOFORS office in my visit to Sweden in 2010 and recalled her contributions. She is settled abroad now.


As per Wiki sources, these are the major scandals that hit us in recent times. As all are in Public domain and are being investigated, let us close it here.

    Notable scandals in India
    ScandalYear reportedScope INR CroreLocationKey playersSummary
    Saradha Group financial scandal201340,000West BengalKunal Ghosh,Sudipto Sen, Madan Mitra and many more[1][2][3]Financial scam caused by the collapse of a Ponzi scheme run by Saradha Group, a consortium of over 200 private companies that was believed to be running collective investment schemes popularly but incorrectly referred to aschit funds.[4][5][6][7]
    Common Wealth Games Scam201070,000 Crore. (Rs 70,000,000,0000 )New DelhiSuresh Kalamadi, Sheila Dixit- the then Chief Minister of the State.It is estimated that out of Rs. 70000 crore spent on the Games, only half the said amount was spent on Indian sportspersons. The Central Vigilance Commission, involved in probing the alleged corruption in various Commonwealth Games-related projects, has found discrepancies in tenders – like payment to non-existent parties, will-ful delays in execution of contracts, over-inflated price and bungling in purchase of equipment through tendering – and misappropriation of funds.
    Indian coal allocation scam[8]2012185,591NationalComptroller and Auditor General of India, the coal ministry, many electricity boards and private companiescoal blocks allotted, not auctioned, leading to estimated losses as per the Comptroller and Auditor General of India[9][10][11] Supreme Court cancels all 214 coal blocks allocations since 1993. Government to e-auction the coal blocks now.[12]
    Uttar Pradesh NRHM scam201210,000Uttar PradeshMayawatiBabu Singh KushwahaBabu Singh Kushwaha and IAS Pradeep Shukla behind bars fror their involvement in NHRM scam.[13][14][15][16][17][18][19]
    2G scam2008176,000NationalNira RadiaA. Raja,M. K. Kanimozhi, many telecommunications companiescommunication bandwidth auctioned for lower than market value.A. Raja and M. K. Kanimozhi have been in Tihar Jail for 15 months and 5 months respectively.They have been charge framed.[20][21]
    Uttar Pradesh food grain scam200330,[22] 00,00,000Uttar PradeshMulayam Singh Yadav, MayawatiFood which the government purchased to give to the poor was instead sold on the open market[23][24][25][26]

    They did not leave grass, they did not leave grains, they did not leave fuel, they did not leave air, they did not leave waves, they did not leave fish, they did not leave poor housing, they did not leave martyrs's rights, they did not leave minerals, they did not leave forests, wild life. The only thing they did not commit fraud was on toilets, as they never thought of it.

    Most probably they thought that as people were left with no food and no water, no air or fire, it was not needed to provide a toilet. They left the nation in a quagmire of filth and looted the wealth. 

    As most of the scandals are under investigation or in courts, I only gave the details of scams. The foregoing was a tip of the iceberg, The total amount looted might have been in crores of crores, leaving the country poor and Swiss Banks richer.  At last, their chicken are coming home to roost and they are taking Private Jets to fly on temporary vacations.

    We only hope, Bihar votes for positive paradigm shift in governance. A win in Bihar strengthens fight against corruption. Caste and religious animosities are sought to be raised. a mini-jungle raj is in place. Be circumspect. Nitish is behaving like the Britsh in 1947. Let the gory past be not reenacted. Let Lalu be shown his place. Congress must be wiped out.