scams and scandals in india since independence

5/19/2018 Scams and Scandals in India SINCE INDEPENDENCE

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Scams and scandals in IndiaSINCE

INDEPENDENCE


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Corruption in India

India is becoming the heaven for corruption andscams. From common man to top politicians, all aretrying to grab public money by any means.

Corruption in government offices and departments,land acquisition, hospitals, income tax, etc. has becomethe norm.

Judiciary, the highest authority associated with law

also shock people when judges of Supreme courts areexposed for taking bribes.


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Corruption in India contd.

Armed forces also displayed Indian corrupted mentality

several times and even succumbed to personal gains while

keeping the country's defense at stake!

And do not ask about the law makers in our Parliament!

In India even the priests in temples and other religious placesare not above question when it comes to corruption!


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Some bitter facts!

India tops the list for black money in the entire world

with almost US$ 1456 billionin Swiss Banksthat is

about $1.5 trillion!

India has more black money than the rest of the

world combined: Swiss Banking Association Report.

India was ranked 87thout of 178thcountries inTransparency International's Corruption Perceptions

Index in 2010.


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Some bitter facts! contd.

Inter-state transport: Truckers in India alone pay$5

billion(yes, US Dollars) in bribes annually.

There is a Bangalore based website, which encourages

citizens to report bribes anonymously they have paid, has so

far compiled 21,038 reportswith a total bribe value ofabout Rs. 53,19,15,991!


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List of scandals in India

Jeep Purchase(1948)Rs. 80 lacs!

Cycle Import scam(1951)

BHU funds misappropriation(1956)Rs. 50 lacs!

The Mundhra Scandal(1958)Rs. 1.2 crore!

Teja loan scandal(1960)Rs. 22 crore!

Pratap Singh Kairon scam(1964)


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List of scandals in India contd.

Kaling tubes scandal(1965)

Maruti Scandal(1974)

Cement Scam involving A R Antulay(1981) - Rs. 30 crore!

Bofors Scandal(1987)

Indian Bank scandal(1992)Rs. 1,300 crore!

Harshad Mehta securities scam(1992) - Rs. 5,000 crore!


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Fertilizer import scam(1996) - Rs. 133 crore!

Sukh Ram telecom equipment scandal(1996)

Bihar fodder scam(1996) - Rs. 950 crore!

Bihar land scam (1997) - Rs. 400 crore!

Hawala scandal(1997)

Ketan Parekh securities scam(2001)


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Kargil coffin scam(2002)

Telgis Stamp paper scam (2002) - Rs. 20,000 crore!

Taj corridor scandal(2003)

Bihar flood relief scam(2005) - Rs. 17 crore!

Haryana Teachers' recruitment scam(2008)

The Satyam scam(2008)


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Hasan Ali black money controversy(2008)

Cash for Vote Scandal(2008)

Madhu Koda mining scam(2009)

Karnataka land scam(2010)

Indian Premier League scandal(2010)

Madhya Pradesh MGNREGA scam (2010) - Rs. 9 crore!


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Commonwealth Games scam(2010)

Adarsh Housing Society scam(2010)

Tatra scam (2011) - Rs. 750 crore!

KG Basin Oil scam(2011)

ISRO's S-band scam(2011)Rs. 200,000 crore!

Indian coal mining controversy(2012)Rs. 185,591.34 crore!


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Jeep Purchase(1948)

The history ofcorruption in post-Independence India startswith the Jeep scandal in1948.

V K Krishna Menon, thethen High Commissionerfor India in London signeda deal with a foreign firm

worth Rs 80 lakh for jeepsfor the Indian Army inKashmir without observingnormal procedure.


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Jeep Scam contd.

The then Government announced on September 30, 1955that the Jeep scandal case was closed, despite the demand ofthe opposition for judicial inquiry as suggested by the InquiryCommittee led by Ananthsayanam Ayyangar.

Union Minister GB Pant said "that as far as Government wasconcerned it has made up its mind to close the matter. If theopposition is not satisfied they can make it an election issue."

Soon after, on February 3, 1956 V K Krishna Menon wasinducted into the Nehru cabinet as minister without portfolio.


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The Mundhra Scandal(1958)

It was the media that first hinted there might be a scam

involving the sale of shares to LIC by Calcutta based

industrialist and stock speculator Haridas Mundhra.


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The Mundhra Scandal contd.

Feroz Gandhi sourced the confidential correspondencebetween the then Finance Minister T. T. Krishnamachari andhis principal finance secretary, and raised a question inParliament on the sale of 'fraudulent' shares to LIC by HaridasMundhra.

The then Prime Minister, Jawaharlal Nehru, set up a one-mancommission headed by Justice MC Chagla to investigate thematter. Chagla concluded that Mundhra had sold fictitiousshares to LIC.

Mundhra was sentenced to 22 years in prison. The scam alsoforced the resignation of T. T.Krishnamachari.


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Bofors Scandal(1987)

The Bofors scandal is known as thehallmark of Indian corruption. The Boforsscam was a major corruption scandal inIndia in the 1980s.

PM Rajiv Gandhi and several othersincluding a powerful NRI family named theHindujas , were accused of receivingkickbacks from Bofors AB for winning a bidto supply Indias 155 mm field howitzer.

The Swedish State Radio had broadcast astartling report about an undercoveroperation carried out by Bofors , Swedensbiggest arms manufacturer, whereby $16million were allegedly paid to members ofPM Rajiv Gandhis Congress.


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Bofors Scandal contd.

The name of the middlemanassociated with the scandal was Ottavio

Quattrocchi, an Italian businessman

who represented the petrochemicals

firm Snamprogetti.

Quattrocchi was reported close to

the family of Prime Minister Rajiv

Gandhiand emerged as a powerfulbroker in the 1980s between big

businesses and the Indian government.


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Bofors Scam contd.

A Delhi court discharged Quattrocchi from the case, as there

was no credible evidence against him, on 4 March 2011


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Cement Scam involving A R

Antulay(1981)AR Antulay(former Maharashtra CM) had garnered Rs 30 crore

from businesses dependent on state resources like cement,

and kept the money in a private trust.


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Cement Scam involving A R

Antulay contd.

He was forced to resign as Chief Minister of Maharashtra after

the Bombay High Court convicted him of extortion on January

13, 1982.

The court ruled that Antulay had illegally required Bombay

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.


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Harshad Mehta securities

scam(1992)

Harshad Mehta was a stock broker on theBombay Stock Exchange and had an expensivelifestyle.

Through the second half of 1991, Mehtahad earned the sobriquet of the 'Big Bull',because he was said to have started the bullrun.

On April 23, 1992, journalist Sucheta Dalal

exposed Mehta's illegal methods in a columnin The Times of India. Mehta was dippingillegally into the banking system to finance hisbuying.


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Harshad Mehta securities scam

contd.The game went on as long as the stock prices kept going up, and no onehad a clue about Mehta's modus operandi. Once the scam was exposed,the banking system had been swindled of a whopping Rs 4,000 crore.

The Chairman of the Vijaya Bank committed suicide by jumping from hisoffice roof. He knew that he would be accused if people came to knowabout his involvement in issuing cheques to Mehta.

Mehta made a brief comeback as a stock market guru in 1998, giving tipson his own website as well as a weekly newspaper column. This timearound, he was working with owners of a few companies andrecommended only the shares of those companies. This game, too, did notlast long.

By the time he died, Mehta had been convicted in only one of the manycases filed against him.


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LalusBihar fodder scam(1996)

The Fodder Scam involvedthe alleged embezzlementof about Rs 950 crore from

the government treasury ofBihar.

Although the scandal brokein 1996, the theft had beenin progress, and increasingin size, for over twodecades.


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LalusBihar fodder scam contd.

Besides its magnitude and theduration for which it was said tohave existed, the scam was andcontinues to be covered in Indianmedia due to the extensive nexus

between tenured bureaucrats,elected politicians andbusinesspeople that it revealed.

As it became evident that Bihar

Chief Minister Lalu Prasad wasinvolved in this scam, he had toresign as chief minister.


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Hawala scam(1997)

The Hawala scandal involvedpayments allegedly received bypoliticians through hawala brokers,the Jain brothers.

It was a Rs 70 crore bribery scandalthat implicated some of the country'sleading politicians.

There were also alleged connectionswith payments being channelled toHizbul Mujahedeen militants inKashmir.


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Hawala scam contd.

The scandal surfaced following CBIraids on hawala operators in Delhi in1991. The accused included LKAdvani, VC Shukla, P Shiv Shankar,Sharad Yadav, Balram Jakhar andMadan Lal Khurana.

Many were acquitted in 1997 and1998, partly because the hawalarecords (including diaries) werejudged in court to be inadequate asthe main evidence.

The failure of this prosecution by theCentral Bureau of Investigation hasbeen widely criticised.


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Barak Missile scandal(2001)

The Barak Missile Scandalis a case ofalleged defense corruption relating tothe purchase of Barak 1 MissileSystems by India from Israel.

The then Defence Minister, GeorgeFernanda's, resigned after the Tehelkasting operation tapes were made public,but he was reinstated later.

Part of the tapes show the treasurer ofhis party talking about accepting bribesof 1 crore or more.


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Stamp Paper Scam (2003)

Abdul Karim Telgi began printing fake

stamp paper in 2003.

His monthly profits have been

estimated about Rs 202 crore. The

size of the scam was estimated to bemore than Rs 43,000 crore.


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Stamp Paper Scam(2003) contd.

A videotape emerged in September 2006 of Abdul Karim Telgi

taking a Narco Analysis test.

Under the influence of the supposed truth serum, Telgi is said

to have blurted out the names of NCP leaders Sharad Pawar

and Chaggan Bhujbal.

On June 28, 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.


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Scorpene submarine deal scam (2006)


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Scorpene submarine deal scam contd.

The Scorpene deal scam has gone down in history as one of India's largest

bribery corruption scandals, in which Rs 500 crore is alleged to have been

paid to government decision makers by Thales, the makers of the Scorpene

submarine.

The amount was channelled via middlemen such as Abhishek Verma. Also

involved was Ravi Shankaran, a relative of the then chief of navy staff Arun

Prakash. He is the prime accused in the navy war room scandal and was

selling defence documents to the Thales.

In October 2005, defence minister Pranab Mukherjee approved the Rs

19,000 crore submarine deal with French company Thales. Scorpene

submarines are now being built in India under a technology transfer

agreement that was part of that contract.


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Satyam scam(2008)

Ramalinga Raju founded SatyamComputers in 1987. A botchedacquisition attempt involving Maytasin December 2008 led to a plunge inthe share price of Satyam.

In January 2009, Raju indicated thatSatyam's accounts had been falsifiedover a number of years.

He admitted to an accounting duperyto the tune of Rs 7,000 crore rupeesand resigned from the Satyam boardon January 7, 2009.


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Satyam scam contd.


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Satyam scam contd.

Raju and his brother, B Rama Raju, were then arrested by the

Andhra Pradesh police.

Raju was convicted of cheating six million shareholders and is

being held in Hyderabad's Chanchalguda jail on charges

including embezzlement, insider trading, breach of trust,

conspiracy, cheating, and falsification of records.


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Hasan Ali black money

controversy(2008)

Hassan Ali is allegedly worth $9 billionor more, according to law authorities.

The Government of India has also

confirmed the existence of this accountin UBS, and ordered him to pay Rs50,000 crore in taxes on that wealth.

However, according to Khan, he is ascrap dealer with an annual income of

Rs 30 lakh.

Some sources claim that he might bethe fourth richest person in India andamongst the world's dollar billionaires.


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Hasan Ali black money controversy

contd.The Enforcement Directorate(ED),Income Tax department along with theEconomic Offences Wing (EOW) ofMaharashtra are probing the illegalinvestments and charges of moneylaundering against Khan.

The Supreme Court of Indiaquestioned the Central Government'sinertia on this issue.

Despite this, the Central Governmentdoesn't intend to prosecute Khanunder India's money laundering lawsimply because it hadn't gone intoeffect at the time the alleged crimeswere committed.


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2G spectrum scam(2010)


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2G spectrum scam contd.

Telecoms minister A.Raja introduced unique procedure forallocation, he allocated by first in first served policy.

What Mr A. Raja has done is that, he given away the spectrumto his favorites, important thing to note that Karunanidhi'sfamily holds large share of Telecoms and Television Networksin Tamilnadu.

The spectrum was sold in the price of 2001,in 2008. The lossfrom 2G spectrum allocation is about Ra 1.76 lakh Corers, Rs1400 per man in the country.

What makes this big is that, the amount country loose in 2GSpectrum allocation is more than India annual income FromExport Business.


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The major beneficiary of this deal was Reliance and Tata, it is

evident from the tapes that having the conversation between

Corporate middle men and Minister A. Raja.

The whole credits to bring out the scam in to light goes to

Janatha party president Mr. Subramaniam Swami who filed an

affidavit in the Supreme court, CPI(M), CPI, BJP and all the left

parties.


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CWG scam(2010)

On 28 July 2010, the Central

Vigilance Commission released a

report showing irregularities in up

to 14 CWG projects.

The detailed preliminary findings

included the award of work

contracts at higher prices, poor

quality assurance andmanagement, and work contracts

awarded to ineligible agencies


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CWG scam contd.

There were also allegations ofwidespread corruption in variousaspects of organizing the gamesincluding procurement andawarding contracts forconstructing the game venues.

The CWG Organizing Committee,on Aug 5, 2010, suspended jointdirector T S Darbari and deputydirector general Sanjay

Mahendroo following the report ofthe three-member panel whichwas probing the financialirregularities related to theQueen's Baton Relay.


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CWG scam contd.

Also, Organizing Committeetreasurer Anil Khanna resigned fromthe post in the wake of allegationsthat his son's firm had secured acontract for laying synthetic courtsat a tennis stadium.

Among the alleged corruption anddefrauding of the games budget,toilet paper rolls valued at $2 werecosted at $80, $2 soap dispensers at

$60, $98 mirrors at $220, $11,830altitude training simulators at$250,190.


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CWG scam contd.

CWG Organizing Committee Chief Suresh Kalmadi's conduct

also came under scrutiny, with the CVC asking the CBI to

probe certain aspects of the games' organization.

On April 25, 2011 after being questioned over alleged

irregularities in the conduct of Queen's Baton Relay (QBR)

held in London in 2009, CBI arrested Kalmadi under Sections

120 B and 420 (criminal conspiracy and cheating) of the Indian

Penal Code in the Commonwealth Games Time ScoringEquipment scam.


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Adarsh Housing Society scam(2010)

In 2010, Indian media brought

to public the violations of rules

at various phases of

construction in the Adarsh

Society - an apartment complex

reserved for the war widows

and veterans of the Kargil War.


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Adarsh Housing Society scam contd.

Several inquiries have been ordered by the army and the

Government to probe into the irregularities.


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Adarsh Housing Society scam contd.

Environment minister Jairam Ramesh formally set the ball

rolling for the demolition of the entire 31-story scam-tainted

Adarsh building in Coloba's eco-sensitive zone on Friday

November 12, 2010.

Ramesh sent a show cause notice to the Adarsh housing

society, saying that "all options under the law are open except

regularisation of the structure".


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Coal mining controversy(2012)

The report of the Controller and

Auditor General of India (CAG) on coal

block allotment to private parties

amounts to a very damaging

accusation of financial irregularity.

States such as Rajasthan, Chhatisgarh

and West Bengal have opposed a

bidding process, Jaiswal said. This hasleft the state dispensation route a

major source of corruption open.


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Coal mining controversy contd.

Examining the parties in power in these States since 2004, it isobvious that political groupings across the ideological spectrumLeft, Right and Centre are allegedly involved in the scam.


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Coal mining controversy contd.

Similarly, the industry players

who secured coal blocks

were from varied

backgrounds including

those with no track record inpower generation or even

manufacturing.

Yet, they managed to securecoal blocks against proposed

projects.


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Conclusion

Let us end this presentation in a positive and optimisticmanner!

Can we do something to eradicate corruption?

Yes, we can!

Raise our voice against it

Dont take and/or give bribe

Educate people about itExercise our power of VOTE judiciously

Inculcate moral values in children

Support Anti-Corruption movements


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The life and future of the nation is secure

only when the nation is corruption free.

JAI HIND!

scams and scandals in india since independence

Documents

india contd

list of scandals

india sinc

r antulay1981 rs

corruption andscams

bihar land scam

total bribe value ofabout

public money