Ten Scams That Knocked India Off Its Feet

February 15, 2013 by MI

India shrugs at yet another scam in the country that involves people who represent honor and integrity and who rather chose to act on the contrary. However their lack of etiquette has not only cost India big sum of money but it has also cost the people the trust they have invested in the system. The scams in India that involve politicians, financial moguls, defence personnel, corporate honchos are many.

Here are the ten scams that knocked India off its feet, as reported by Apoorva Sripathi and Mowna Ravikumar for Yahoo.com

1 Chopper Deal Scam

The most recent of all scams in the country dealing with Rs 74.5 crore, is the Chopper deal scam. As per Reuters, the investigation which started more than a year ago against the Italian firm Finmeccanica has finally culminated to the arrest of the Italian firm head, also the former IAF Chief Air Chief Marshal S P Tyagi confessed meeting the middle man, however he did claim to be innocent.

2 Tatra

Over 7000 trucks were manufactured by Bharat Earth Movers Ltd (BEML) in collaboration with Tatra Vectra Motors in 2010. It was disclosed by the retired General VK Singh that he was offered a bribe of Rs 14 crore in his office in order to clear the purchase of 1,676 substandard Tatra BEML trucks. The estimated amount of the scam is 750 crore.

3 Coalgate

Coalgate is the political scandal involving the government’s allocation of the nation’s coal deposits to public sector entities and private companies between 2004 and 2009, also called the coal allocation scam. It is one of the most infamous scams in India that estimated a loss of Rs 185,591 crore. The comptroller and Auditor General (CGA) has accused the government of India for distributing 155 coal acres to companies in an arbitrary manner instead of auctioning it out to the highest bidder.

4 Antrix Devas Deal

The former ISRO chairman G Madhavan Nair and three other scientists were responsible for controversies created over the deal between the Indian Space Research Organisation (ISRO) and commercial arm Antrix Corporation and Devas Multimedia, which was signed in 2005. The scam involved ISRO leasing the S-band transponders on two satellites, GSAT6 and GSAT6A, for broadcasting purposes to Devas Multimedia. The controversy led to G Madhavan Nair being barred from holding any government jobs in January 2012, until further review.

5 The 2G Scam

The Telecom Ministry in 2008 under the supervision of A.Raja sanctioned about 122 Licenses of the 2 G Spectrum to 85 companies which also included many new Telecom Companies with non or little experience at a price set in the year 2001.This illegal undercharging to various telecom companies of the allocated 2G licenses for cell phone subscriptions gave way to the 2G spectrum scam. The report prepared by the CAG estimating the scam amount to about Rs 176,000 crore, however, the CBI report estimates it to be Rs 30,984 crore.

6 Satyam Scam

The satyam scam, considered to be the biggest scam in Indian corporate history came out in the early 2009 which shook the Indian stock market. Satyam Computers Chief B. Ramalinga Raju manipulated the accounts which he later confessed. The misrepresentation of the accounts included showing of company’s balance sheet as Rs 5,040 crore and non- existent interest of Rs 376 crore in September 2008. Ultimately the scam that began with misappropriate books and inflated figures led to a loss of

Rs 8000 crore suffered by the Satyam chief.

7 CWG

CWG is another one of the major political scams in India. In the 2010 Commonwealth Games (CWG) Suresh Kalmadi the former chairman of the Organizing Committee of the Commonwealth Games was accused for the CWG scam. There were number of corrupt deals involved including overstated contracts. For the timing equipment from Swiss Timing, Kalmadi handed out a contract of Rs 141 crore, which was inflated by Rs 95 crores. The athletes were asked to relocate into shabby and unkempt apartments just 10 days before the games.

8 Adarsh Housing Society

In 2002, the chief minister of Maharashtra allotted land to construct a cooperative society in the heart of the Mumbai city for the ‘welfare of serving and retired personnel of the Defence Services’. Instead of the defence personnel getting flats in the society, top politicians, bureaucrats and military officials took the flats at low prices. It was found by the CBI, IT department and the ED that among the involved in the scam were Ashok Chavan, Sushilkumar Shinde and Late Vilasrao Deshmukh.

9 Vanishing Companies Scam

In 1998, Over 600 companies on the Dalal Street disappeared after raising money from the public. A probe was ordered by P Chidambaram to look into the matter. The SEBI probe revealed that at least 80 of the companies had raised Rs 330.78 crore. Later the Department of Company Affairs (DCA) was asked to start investigation and penalize the scamming company. The investigation still remains open.

10 Hawala scam

The scandal that involved Indian politicians allegedly receiving payment through four hawala brokers, the Jain brothers. An estimated Rs 1000 crore was involved in the bribery scandal implicating some India’s leading politicians like L K Advani, Sharad Yadav, Madan Lal Khurana, V C Shukla, Balram Jakhar and P Shiv Shankar. The arrest of militants in Kashmir in 1991 led to a raid on hawala brokers which revealed evidence of heavy payments made to many politicians in the country. The court case on the scandal ultimately collapsed without convictions.

Since independence the number of scams and scandals India has witnessed can leave anyone dumbstruck, with the amount of money involved India could have boosted its economy. As Gandhi said, “There is enough to satisfy every man’s need, but not every man’s greed,” only if the people scamming the country could understand.

Will India Escape The Olympic Ban?

December 5, 2012 by MI

When sports and corruption join hands it leads to catastrophe, causing distress to the athletes who put their heart and soul in the sport. Suresh Kalmadi abdicated his President’s post in the Indian Olympic Association, a post he held for 16 years, after he was alleged with corruption charges. After he stepped down, Abhay Singh Chautala and Randhir Singh decided to contest for the posts on the committee.

A lot of information has been reveled since then, even this, that the top officials were elected unopposed, much before the poll date.
Most controversial is the return of Lalit Bhanot to the Indian Olympic Association (IOA), as the new secretary general, and it has raised many questions across the country calling the election futile.
Now stuck with tainted officials India’s suspension from the Olympic movement is to be known in the near future, but can India escape the ban is hard to say. The International Olympic Committee (IOC) has its meeting set in Lausanne on December 4^th and 5^th.At the meeting it will be decided if India should be suspended for breaking the Olympic agreement in its election process, as reported by AFP.

The IOA has been asked by Delhi court to hold the elections as per the government sports code, but instead the IOC wanted it to abide by the Olympic treaty which favours autonomy.

The association elected Lalit Bhanot after the IOC member Randhir Singh removed his name from the contest, leaving Lalit Bhanot unopposed to be elected as the IOA’s secretary general.

Bhanot was released on bail after being in custody for 11 months last year over corruption charges during the 2010 Commonwealth Games held in New Delhi, when he was at the same position of secretary general of the organising committee.
In October the IOC Ethics Commission warned the Indian committee against keeping Bhanot or IOA’s former head Suresh Kalmadi, who is also out on bail over corruption allegations.
About Bhanot contesting elections Chautala said there is nothing wrong with it as Bhanot hasn’t been convicted. Chautala said, “Many people have cases pending against them, but they can’t be called guilty till the courts say so.” He added, “Bhanot has every right to contest, “as reported by AFP.
Chautala informed that at the Executive Board meeting in Lausanne two of the IOA members had been deputed to meet the IOC representatives before the probable poll against India.

India’s suspension from IOC membership means India would not receive IOC funding and its members would be banned from attending Olympic events and meetings.
The Indian athletes would be excluded from competing in the Olympics bearing the national flag. However, the IOC probably would allow them to take part under the Olympic flag.
Abhinav Bindra, India’s lone individual Olympic gold medalist spoke after seeing Bhanot elected as the IOA secretary general. He said that it makes his ‘blood boil.’ He further said, “It’s about politics and stooping to a new low,” as reported the AFP. He finds it agonizing to see such people taken back.
However he claimed, “If our Olympic association is banned, it could be a blessing in disguise. With no multi-sport event in 2013, Indian athletes could… unite to change the present system.”
Clean Sports India (CSI), an organization formed by former sportspersons hoping corruption free sports administration has also supported the IOC’s terms.

Morad Ali Khan, CSI official and former shooter said “If medicines do not work, it needs a surgery,” he added, “IOC’s threat of suspension is a surgery for the Indian sporting system,” as reported by AFP.
The ban for India from Olympics will be no doubt embarrassing. However, with no multi disciplinary actions in 2013 some feel that this step could be a better opportunity for a clean-up process in the Indian sports league.

Do Politicians Really Enjoy the Money They Make?

October 19, 2011 by MI

Everybody is looking at how to make more money. And while we are talking about everybody, how can our beloved politicians not feature in the rat race. Our great Indian politicians spend hours at a stretch in devising error proof strategies to loot people and fill their bank accounts. But the irony of the entire situation is that, do they actually get a chance to enjoy the money they skim. Despite being loaded with millions they still cannot flaunt a BMW or an Armani outfit. But there has to be an exception everywhere. The Iron lady of India Jayalalitha has no hitches in flaunting whatever she has achieved.

If we were to look at different politicians who were involved in various scams and earned big fat money then the list would be never ending. So let’s take a look at few prominent politicians who made corruption the limelight of India.

A.Raja- 2G Scam

He is someone associate to everytime you hear about the 2G spectrum financial scandal in the Telecommunications and IT Ministry. This is the largest political corruption case in the Indian history, a scam worth 176,000 crore. This was followed by his resignation and a raid at his residence by the CBI. Raja was involved in illegally undercharging mobile telephony companies for allocating licenses, which they would use to create 2G subscriptions for cell phones. He arranged the sale of the 2G spectrum licenses below their market value. The estimate to Raja’s wealth is a big amount of 3,000 crore. His personal income increased from 11.47 lakh to 22.12 lakh from 2009 to 2010. Despite making so much money and his newly conquered wealth, he is confined within the walls of Tihar Jail.

Suresh Kalmadi- CWG Scam

Once belonging to the Indian Sports fraternity, Suresh Kalmadi, tainted former CWG Organising Committee chairman, gave rise to the CMG scam for awarding illegal contracts to a Swiss firm for Timing Scoring Result system for the 2010 Commonwealth Games causing a loss of 95 crore to the exchequer. It is estimated that out of 70000 crore spent on the Games, only half the said amount was spent on Indian sportspersons. Kalmadi and his team were in a habit of in the habit of handing out contracts to firms that provided equipment or services at exorbitant rates. During the 2009 Lok Sabha elections, Kalmadi had declared assets worth 12.81 crore while filing nomination from Pune. He had claimed that he owned agriculture land worth 1.38 lakh and house and apartments worth 2.49 crore. What a pity for this man, who looted the public to build his wealth and is now using it to cure his new crisis ‘dementia’, a disease related to memory loss.

BS Yeddyurappa- Land Scam

Every scam must have something unique in it to make money, take a look at the multi-crore land scam by the former Karnataka Chief Minister and the BJP leader BS Yeddyurappa that had all the suspense and drama a scam needs. He made a sincere effort in bringing a complete change in every rule stated in the book, only to ensure allotment of land for his sons and other family members. He gave away two acres of industrial land to his family firm in Bangalore, two acres to his daughter’s BPO firm, a residential plot to his son in Bangalore, 134 acres (mining lease) to his followers and residential plots to his relatives in Mysore. He made sure the lands were de-notified in return for investments in his family firms or lands were allotted on a preferential basis to enable the business growth of these companies. With 15 illegal transactions carried out by the CM, his family made around 190 crore. According to Yeddyurappa’s affidavit, the assets owned by him are worth 1. 82 Crore while liabilities are 2.59 Lakhs. This bumpy ride gradually led to a downfall of Yeddyurappa.

Madhu Koda- Hawala Scam

Another feather in the cap of the Indian corruption list is Hawala Scam by the former Jharkand Chief Minister,’ Madhu Koda’ was responsible for a scam worth over 4000 Crore. This corrupt politician exploited the state’s natural resources by licensing illegal mining leases and hiding the wealth collective during the undertaking. You would be astonished on reading the eventful life this man enjoyed. From being a labourer who worked in the mines to receiving all the benefits by capturing the Chief Minister’s chair and now the district jail, he was charged with washing off money. He has propery worth 130 Crore. And the government is set to confiscate assets worth 125.

Mayawati- Power Scam

Someone who didn’t leave even a single opportunity to misuse her power is Mayawati. The mother of all scams, who uses shoddy way to get funds. She is accused of 3,000 Crore power scam. The state-owned Uttar Pradesh Power Corporation sacrificed lower rate of power from the National Thermal Power Corporation (NTPC) and other agencies, and made an agreement with five private power companies to purchase 5,000 crore units of power from July 2011 to June 2012 at a much higher rate. She was also charged with corruption when the Taj Heritage corridor case was uncovered. Mayawati’s government is involved in 100 scams worth 2.54 lakh crore and 4 lakh crore scams of central government. Her net worth at present is more than 87 crore, a gain of at least 35 crore over her 2007 declaration of 52 crore. With more than 67 percent returns in three years. She is the most corrupt politician India has ever seen.

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Most Corrupted Politicians

September 7, 2011 by MI

A Raja

Said to be the mother of all scams, 2G spectrum scandal had A Raja at its center from the beginning. The whole deal of issuing 1232 2G spectrum licenses to 85 companies at a price set in the year 2001 by the UPA alliance was in the shadow of doubt from its beginning. The CAG report on the scam reveals that it caused a loss of 1.76-lakh crore to the exchequer. The report which termed allocation deal as arbitrary, unfair and inequitable held the then telecom minister Raja responsible for the sale of 2G spectrum and the huge revenue loss. It was revealed that the minster had personally signed and approved the majority of the questionable allocations. Raja was arrested on February 2, 2011 and later sent to Tihar Jail for judicial custody. CBI and Enforcement Directorate estimate that Raja could have made as much as 3,000 crore from the alleged bribes.

Amar Singh

Its jail time for Amar Singh, the politician who always enjoyed the limelight for various reasons from his close bonds with Ambanis and Bachchans to the cash-for-votes scam that questioned the value of democracy. He is the latest one in the band of politicians spending days counting the bars at the Tihar jail. The high profile jail has felt the presence of many big shots lately including 2G-scam accused A Raja and Kanimozhi as well as former CWG chairman Suresh Kalmadi. Here is a list of top politicians who are in jail for some of the recent scams that rocked the Indian politics.

The political heavyweight from Uttar Pradesh has been a prominent voice in the Indian parliament over a decade now. Beyond politics, he has a special affection for Bollywood where he called its Godfather Amitabh Bachchan his brother and was linked to many actresses including Jaya Prada. He was often seen in the company of Bollywood stars and corporate honchos. In a leaked tape that Singh claimed is bogus, his close friend and Chairperson of Reliance ADAG Anil Ambani allegedly offered him 20-25 crore to fix a deal. He was quick in making friends and foes in politics and on many occasions, his political friends turned to be bitter rivals and vice versa. In a major setback, Singh was charge sheeted in the ash-for-votes scandal in 2008. It was alleged that he conspired and masterminded the scam when the UPA government was facing a floor test in Parliament after the Left Front pulled off from the collision due to difference over the U.S.-India nuclear deal. The day has come now for Amar Singh as the Special judge rejected his interim bail plea and sent him to judicial custody in Tihar jail.

M. K. Kanimozhi

She has been the favorite child of DMK Chief M Karunanidhi and has been the urban face of the party. The political career that began in 2007 after being elected to the Rajya Sabha, has been under the shadow of doubt after ever since the 2G scam broke out. On 20 May 2011 Kanimozhi Karunanidhi was arrested and sent to Tihar Prisons in India after her bail plea was rejected in the 2G spectrum scam case, in which she is alleged to be co-conspirator.