THIS story was published on the eve of Independence Day last year. But it has become relevent today against the backdrop in Baba Ramdev and Anna Hazare's crusade against corruption. Some things never change in India. Will Baba Ramdev and Anna buck this trend? Here is a list of six things/issues that we Indians should be shameful about:
Corruption: As old as the countryIndia's date with corruption seems to be as old as the country itself. Starting with the British bribing the Maharajas to gain control of the unconquered lands, it is a long trait that has been a boon and a bane to many. You must be thinking how is it a boon? I'll come to that later.
Licence Raj:
Corruption Raj since Independence, India's economy has been driven by socialist-inspired policies for practically three to four decades. When Indira Gandhi came to power in 1966, she went on a socialist spree --- Nationalising banks, Garibi hatao campaign and Licence Raj. Licence Raj became synonymous with corruption as red tape was inevitable while the companies scouted for licences to set up businesses in India.
Imagine this: Up to 80 government agencies had to be satisfied before private companies could set up shop, and if they did manage to do it, the government would regulate the production. Probably that is not what Jawaharlal Nehru, the architect of the system of Licence Raj, had in mind.
Spectrum Raja: Billions vanish into air
That licence raj is still prevailing today, albeit in a different manner, thanks to Spectrum Raja, is disturbing. A Raja, who is the Union Minister for Telecommunications, seems to have literally thrown spectrum to the winds. There were major irregularities in allotting wireless radio spectrum and licences by the telecom ministry to nine private telcos in 2007(second generation).
The Rs 60,000 crore-scam began when the government allocated scarce 2G spectrum at throwaway prices that too to a string of companies without any experience in the telecom sector. The allegation is that the government gave away scarce spectrum to nine companies, clubbed with licences, on a first-come-first-serve basis, rather than through an auction process. That is, an operator got start-up spectrum by paying pan-India licence fee of Rs 1,650 crore. This price was not taken on the basis of the 2007 market value but on the basis of an auction held in 2001.
Also, many new players roped in foreign investors soon after acquiring the licences, thereby making a neat sum. The value of the licence and spectrum in 2007 could not be the same as in 2001 as the telecom market has grown phenomenally during this period. Prime Minister Manmohan Singh refused to accept the allegations surrounding Spectrum Raja.
Raja has continually maintained that the government has simply following its earlier practice of allotting 2G start-up spectrum along with licences on a first-come-first-serve basis. The 2G spectrum allocation issue came under the scrutiny of various bodies, including the Central Vigilance Commission (CVC) and the Central Bureau of Investigation (CBI). Despite these investigations during the UPA-1 regime, Raja returned as the IT and communications minister in UPA-2. Raja is an MP of UPA ally DMK.
The government policy of 2G spectrum is facing fire as the ongoing auction of 3G (third generation) spectrum has resulted in exceedingly high bids. Against the pan-India reserve price of Rs 3,500 crore, the 3G auction has yielded close to Rs9,000 crore in 16 days of bidding. The 3G bidding is nowhere near the closing line yet.
Commonwealth Games: Muck yet to stop flying
Imagine buying a 100 litre fridge for Rs 42,202 (which can be bought for a mere Rs 14,000-15,000), a toilet tissue paper roll for Rs 4,132 (Original price: Rs 30-40) and a 2 tonne AC for Rs 1,87,957 and wait..... an umbrella for Rs 6,000 and more!!!!
This is probably a Guinness record and the neatest way in which Suresh Kalmadi, the chairman of the Games Organising Committee, could make pots of money... after all price is a matter of perception. The rot starts right at the top. The probe of Comptroller Auditor General of India (CAG) revealed that undue favour had been showed to London-based Fast Track Sales solely on the recommendation of Commonwealth Games Federation Mike Fennell and Chairman Suresh Kalmadi.
Jubilee Sports Technology, a relatively unknown company, had bagged many Games contracts and was a key supplier. It appears as if the company's headquarters and other shareholders have simply vanished into thin air as most of the addresses have turned out to be a fake. There too much more muck....At this rate, Mani Shankar Aiyar's dreams of the Delhi Games flopping might come true.
Among the other famous scams that have rocked India for several years are the Bofors scandal (which is yet to see the light of the day), fodder scam and Mayawati's Taj Corridor Scam. A quick look at history to find out why they are still rocking the Parliament.
Bofors:
The Indian government signed a $1.4 billion contract with Swedish arms company AB Bofors on March 24, 1986, for the supply of over 400 155mm howitzers. It is alleged that Bofors paid kickbacks to top Indian politicians and key defence officials to secure the deal. Italian businessman Ottavio Quattrocchi, who was close to Rajiv Gandhi, was the middle man.
Former prime minister Rajiv Gandhi's name figured in the first CBI chargesheet in the case as "an accused not sent for trial" as he was killed in 1991. The Hinduja brothers also have been charged in this case --- with cheating, criminal conspiracy and corruption. Both were later cleared of any involvement by the Delhi High Court. The latest --- CBI has applied for a closure of the case against Italian businessman Ottavio Quattrocchi.
Taj Corridor Scam:
In 2002-03, the then chief minister of Uttar Pradesh decided to upgrade tourist facilities near the Taj Mahal. The BJP government at the Centre gave her the environmental clearance for the project, but later backed out. It is alleged that Mayawati embezzled money set aside for the Rs 175-crore project. The case is still under investigation by the CBI.
Fodder Scam:
The Rs 950-crore scam kept Lalu Prasad Yadav in the limelight long enough. It involved the alleged embezzlement of about Rs 950 crore from the treasury of Bihar. This was done over many years and through various officials who even fabricated vast herds of fictitious livestock for which fodder, medicines and animal husbandry equipment were supposedly procured.
Now back to why it is a boon for people like us. It is because our officials are corrupt that we know that a bribe here and there will get our work done, without breaking our heads too much about being law-abiding citizens. We evade taxes, pay off cops for traffic violations, register properties under false names, play for the country even if we are not eligible all because corruption has become so intrinsic in our system.
Corruption: As old as the countryIndia's date with corruption seems to be as old as the country itself. Starting with the British bribing the Maharajas to gain control of the unconquered lands, it is a long trait that has been a boon and a bane to many. You must be thinking how is it a boon? I'll come to that later.
Licence Raj:
Corruption Raj since Independence, India's economy has been driven by socialist-inspired policies for practically three to four decades. When Indira Gandhi came to power in 1966, she went on a socialist spree --- Nationalising banks, Garibi hatao campaign and Licence Raj. Licence Raj became synonymous with corruption as red tape was inevitable while the companies scouted for licences to set up businesses in India.
Imagine this: Up to 80 government agencies had to be satisfied before private companies could set up shop, and if they did manage to do it, the government would regulate the production. Probably that is not what Jawaharlal Nehru, the architect of the system of Licence Raj, had in mind.
Spectrum Raja: Billions vanish into air
That licence raj is still prevailing today, albeit in a different manner, thanks to Spectrum Raja, is disturbing. A Raja, who is the Union Minister for Telecommunications, seems to have literally thrown spectrum to the winds. There were major irregularities in allotting wireless radio spectrum and licences by the telecom ministry to nine private telcos in 2007(second generation).
The Rs 60,000 crore-scam began when the government allocated scarce 2G spectrum at throwaway prices that too to a string of companies without any experience in the telecom sector. The allegation is that the government gave away scarce spectrum to nine companies, clubbed with licences, on a first-come-first-serve basis, rather than through an auction process. That is, an operator got start-up spectrum by paying pan-India licence fee of Rs 1,650 crore. This price was not taken on the basis of the 2007 market value but on the basis of an auction held in 2001.
Also, many new players roped in foreign investors soon after acquiring the licences, thereby making a neat sum. The value of the licence and spectrum in 2007 could not be the same as in 2001 as the telecom market has grown phenomenally during this period. Prime Minister Manmohan Singh refused to accept the allegations surrounding Spectrum Raja.
Raja has continually maintained that the government has simply following its earlier practice of allotting 2G start-up spectrum along with licences on a first-come-first-serve basis. The 2G spectrum allocation issue came under the scrutiny of various bodies, including the Central Vigilance Commission (CVC) and the Central Bureau of Investigation (CBI). Despite these investigations during the UPA-1 regime, Raja returned as the IT and communications minister in UPA-2. Raja is an MP of UPA ally DMK.
The government policy of 2G spectrum is facing fire as the ongoing auction of 3G (third generation) spectrum has resulted in exceedingly high bids. Against the pan-India reserve price of Rs 3,500 crore, the 3G auction has yielded close to Rs9,000 crore in 16 days of bidding. The 3G bidding is nowhere near the closing line yet.
Commonwealth Games: Muck yet to stop flying
Imagine buying a 100 litre fridge for Rs 42,202 (which can be bought for a mere Rs 14,000-15,000), a toilet tissue paper roll for Rs 4,132 (Original price: Rs 30-40) and a 2 tonne AC for Rs 1,87,957 and wait..... an umbrella for Rs 6,000 and more!!!!
This is probably a Guinness record and the neatest way in which Suresh Kalmadi, the chairman of the Games Organising Committee, could make pots of money... after all price is a matter of perception. The rot starts right at the top. The probe of Comptroller Auditor General of India (CAG) revealed that undue favour had been showed to London-based Fast Track Sales solely on the recommendation of Commonwealth Games Federation Mike Fennell and Chairman Suresh Kalmadi.
Jubilee Sports Technology, a relatively unknown company, had bagged many Games contracts and was a key supplier. It appears as if the company's headquarters and other shareholders have simply vanished into thin air as most of the addresses have turned out to be a fake. There too much more muck....At this rate, Mani Shankar Aiyar's dreams of the Delhi Games flopping might come true.
Among the other famous scams that have rocked India for several years are the Bofors scandal (which is yet to see the light of the day), fodder scam and Mayawati's Taj Corridor Scam. A quick look at history to find out why they are still rocking the Parliament.
Bofors:
The Indian government signed a $1.4 billion contract with Swedish arms company AB Bofors on March 24, 1986, for the supply of over 400 155mm howitzers. It is alleged that Bofors paid kickbacks to top Indian politicians and key defence officials to secure the deal. Italian businessman Ottavio Quattrocchi, who was close to Rajiv Gandhi, was the middle man.
Former prime minister Rajiv Gandhi's name figured in the first CBI chargesheet in the case as "an accused not sent for trial" as he was killed in 1991. The Hinduja brothers also have been charged in this case --- with cheating, criminal conspiracy and corruption. Both were later cleared of any involvement by the Delhi High Court. The latest --- CBI has applied for a closure of the case against Italian businessman Ottavio Quattrocchi.
Taj Corridor Scam:
In 2002-03, the then chief minister of Uttar Pradesh decided to upgrade tourist facilities near the Taj Mahal. The BJP government at the Centre gave her the environmental clearance for the project, but later backed out. It is alleged that Mayawati embezzled money set aside for the Rs 175-crore project. The case is still under investigation by the CBI.
Fodder Scam:
The Rs 950-crore scam kept Lalu Prasad Yadav in the limelight long enough. It involved the alleged embezzlement of about Rs 950 crore from the treasury of Bihar. This was done over many years and through various officials who even fabricated vast herds of fictitious livestock for which fodder, medicines and animal husbandry equipment were supposedly procured.
Now back to why it is a boon for people like us. It is because our officials are corrupt that we know that a bribe here and there will get our work done, without breaking our heads too much about being law-abiding citizens. We evade taxes, pay off cops for traffic violations, register properties under false names, play for the country even if we are not eligible all because corruption has become so intrinsic in our system.
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