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SAY
                         NO TO
                       CORRUPTION
                       AND
A Samudaaya Campaign
                       PRICE RISE
Adarsh, Satyam and Common Wealth!
  What virtuous names for vicious scams!
                                                      Spate of corruption scandals
                                                2G Spectrum     : Rs. 1,76,000 cr.
                                                Commonwealth : Rs. 58,000 Cr.
                                                Mining Scandal : Rs. 22,000 cr
                                                Land Scams       : Rs. 17,000 cr


              India is the only country with
 Annual GDP Growth                                  8%
 Dollar billionaires (49 spawned in one decade)    54
 GDP share of Dollar billionaires                  31 %
 Population below offiicial poverty line           48%
 Population spending Rs. 20 (half a $) per day     77 %
 Population chronically hungry                 Rs. 23 Crores
 Stunted children (under 3 years)                  38 %
 Anemic children (under 3 years)                   79 %
 Anemic pregnant women                             58 %

Spate of questions ? Why so many scams ? Why so frequent ? Why a massive increase in quantum
? Why denials ? Why cover-ups ? Why has it become acceptable? What has brought us this far ? Why
the media is ineffective ? Why the silence on corporates ? Why should we take this lying down ?
What the corruption has got to do with Price Rise ? What can we do ? Why ?...What ? .How ?..
Vegetable Price Rise reminding IPL Auction !
                                                               • Vegetable price increase 67% in 9 months
                                                               • Onion prices jumped from Rs. 80 to Rs.110 this Jan
                                                               • Petrol prices hiked 7 times since deregulation
                                                               • Speculation in essential commodities
                                                                                     =1.5 times budget
                                                               • corporate share in food retailing tripled in past 4
                                                                 years
                                                                   “
                                                                   • Onion symbol of food inflation of 2011, as Sugar in 2010
                                                                   • Waiting for 8th oil price hike for state elections to be over !
                                                                   • Food Price increase at 2011 Jan at 18.32 % above 2010 jan
                                                                     level (2010 was the worst year for food price increases


• month on month food increase also above 9% most part of
  2010 touching 11 in Nov 2010

  Retail Price Rise (per kg) in Karnataka (in last one year)

                         Apr 2010        Max

 Onion                     Rs. 11      Rs. 65 (Dec 10)
 Tomato                    Rs 14       Rs. 45 (Dec 10)
 Potato                    Rs. 12      Rs. 22 (Dec 10)
 Groundnut oil             Rs. 64      Rs, 80 (Jan 11)
 Urad Split                Rs. 73      Rs, 80 (Dec 10)
 (GoI data at NIC website)
Corruption has always been around, everywhere !
   …….Major Scams since 1947
  1948-1991 (in crores of Rs)
Mundhra Scandal         1957    1.2
Dhamateja Loan          1960   22.0
Kairon (Punjab CM)      1963    NA
Biju Patnaik (Ors CM)   1963    NA
Kuo Oil Deal            1976    2.2
Antulay Trust           1981   30.0
HDW Commissions         1987   20
Bofors Pay-off          1987   64

                                            1992-1998 (in crores of Rs)
                                      Harshad Mehta Security      1992      5000
                                       Indian Bank Rip-off          1992     1300
                                       Sugar Import                 1994      650
                                       Vote for Notes - 1           1995       ?00
                                       MSShoes Share Price Rig     1994       699
                                       Bihar Fodder Scam            1996      950
                                       Urea Import                  1996      133
                                       Hawala Jain Diary            1996      ?00
                                       Bhansali Financial Pyramid   1997     1000
                                       Harshad Mehta Share Price Rig1997     ?000
                                       Sukharam Telecom              1997    1500
                                      Companies Vanishing Post-IPO 1997       330
                                      Teak Plantation                1997    2600
And some more!
Scams have never been in short supply here
        1999-2004 (in crores of Rs)
Mobile License Policy Change   1999     46,000
Modern Foods Privatisation     2000      2,050
BALCO Privatisation            2001      4,050
Ketan Parekh K-10 Scrip Rig    2001      1,250
UTI Collapse                   2001      4,800
Dinseh Dalmia                  2001        595
Stock Market collapse          2001   1,15,000
Wheat Import                   2003     10,000
NICE Land Grab                 2004      10,000
Karnataka Land Scam – 1        2004      1,550


                                                     2005-2011 (in crores of Rs)
                                                  IPO-Demat                     2005     146
                                                  Taj Corridoor                 2006      175
                                                  Satyam                        2008 10,000
                                                  Army Ration pilferage         2008    5,000
                                                  Rice Export                   2009    2,500
                                                  Madhu Koda Jhrakand Mine Lease 2009    4,000
                                                  Orissa Mine Lease             2009    7,000
                                                   Karnataka Illegal Mining      2009 22,000
                                                  Operational Lotus              2009   ?,000
                                                   Karnataka Land Sacm - 2       2009   5,800
                                                  Vote for Notes - 2             2010 ??,000
                                                  Commonwealth Loot              2010   58,000
                                                  Resort Politics                2010 ??,000
                                                  2G Spectrum                    2011 1,76,000
                                                  Hassan Ali Tax evasion         2010   89.000
Scams increased in torrents
after Economic Reforms in 1991
Period/              Number of                 Scam loot                Remarks
  Yrs                                       (in Rs. Crores)
            Resig      Convi     Major   Typ     Max      Tot
            nation     ctions    Scams
            s

1947-1990     5          5         8     Tens      64      150    rot reaches PM
   45        (2+3)

1991-1998     3          3        13     Hund    5,000   25,000   PM is accused
             (2+1)                       reds
    8


1999-2004     0          2        10     Thou     1,15       2    No arrests
                                         sands
    6                                            Lakh    lakhs
2005-2010     1          1        15       Ten    1,76       4    Denials till FIR;
             (1+0)                       thous                    Arrests in 4 cases
    6                                            Lakh    lakhs
                                          ands


                                                                    •    Major scam occurances gone up from 1 in 6 years
                                                                         to 1 in 6 months
                                                                    •    Scams are direct result of economic reforms in
                                                                         1990s unleashed by Manmohan Singh and later
                                                                         accelerated by Vajpeyee and Dr. Singh’s regimes
                                                                    •    Scam size grown in torrents from tens to
                                                                         hundreds, thro’ thousands to lakhs of crores in
                                                                         the 4 phases
                                                                    •    Resignations , arrests and convictions reduced to
                                                                         trickle and cases are delayed indefinitely
                                                                    •    Scam has reached top echelons of Politicos,
                                                                         Bureaucracy, Army, Industrialists and Judiciary
                                                                         too
COMMONWEALTH
   COMMONWEALTH GAMES LOOT Rs. 58,000 Cr.
                                                       Original Estimate Rs. 617.5 Crores

                                                       Cost of Commonwealth Games

                                                       2002 (UK)             : Rs 2,100 crores
                                                       2006 (Australia)      : Rs 5,000 crores
                                                       2010 (India)          : Rs 60,000 crores!!!
                                                       2014 (UK,estimated)   : Rs 2,200 crores!


 • Every concievable trick was used to loot - overcharge, fake
   front companies to cover up nepotism, no or single tender,
 • 90% of infrastructure cost was looted
 • Every concievable item was overcharged – from toilet paper,
   transport to stadia
                                                         cover-
 • Org Com violated all conceivable norms to loot and cover-up the
   loot and violations
 • Consistent bad quality and horrible delays also did not wake up
   the authorities
        anti-
 • All anti-corruption checks failed to detect, prevent the
   malafied action of OC and its coterie
 • All bodies above OC including Central Govt. denied any
   wrongdoing till it was impossible to continue
 • Investigation, action to presecute is also too less too late

“ The Commonwealth Games were no showcase, but a mirror of India 2010. If they showcased
anything, they showcased Indian crony, casino capitalism at its most vigorous. To build such a society
and then expect The Games won't reflect its warts and sores is high optimism…              ”
                                                                                     P Sainath The Hindu 06 Jun 2010
2G Orgy
     Of Rs. 17,60,00, 00,00,00,000
                                                                 Why did we decide to audit ?
                                                                 “In January 2008, Department of Telecommunications
                                                                 issued 120 new licences for unified access services on the
                                                                 same day. These licences were issued at price which had
                                                                 been discovered in 2001. Issuance of 120 licences in just one
                                                                 day and at a price discovered in 2001 has drawn the attention
                                                                 of Media, Parliament and informed members of the civil
                                                                 society. Questions have been raised regarding the
                                                                 transparency in the allocation process and the failure in
                                                                 maximization of revenue generation from the allocation of
                                                                 spectrum, which is a national asset. This department had
                                                                 been receiving innumerable references from Members of
                                                                 Parliament and other sources repeatedly, questioning the
                                                                 allocation process and the price fixed for such allocation ”
                                                                 from Executive Summary of CAG Report on 2G Spectrum

“Who says there was no auction in 2 G ?                             There
was in fact a successful auction of spectrum — only it was not conducted by
the government but by its corporate sector cronies who made a fortune on the
deal. Having been gifted that scarce public-owned resource by the
                                      public-
government, the cronies then auctioned it privately for astronomical sums of
money ..Also auctioned alongside were the government's individual
Ministers,posts and integrity. Two auctions for the price of
none..” P Sainath The Hindu Feb 21, 2011
none..”
12-
     12-zero figure from Horse’s Mouth
         Rs. 17,60,00, 00,00,00,000




                                                                    CAG Formula vs. Kapil Sibal Formula
What CAG found on 2G Spectrum
 (i) Gaps in policy implementation (ii) Telecom Commission
was not consulted (iii) Views and concerns of Ministry of
Finance overruled (iv) Advice of Ministry of Law and Justice
were ignored (v) Hon'ble Prime Minister's suggestions were
not followed (vi) Arbitrary changes by DoT in the cut-off
date. (vii) First Come First Served Policy was not followed
(viii) Issue of license to ineligible applicants (ix) Presumptive
value of spectrum allocated to 122 new UAS licencees
and 35 Dual Technology licencees in 2007-08 (x) Value of
additional spectrum allotted to 13 existing operators beyond
contracted quantities
from Executive Summary of CAG Report on 2G Spectrum
2G and other Orgy Partners
                              courtesy : Radia Tapes
                                                                          “The telecom, mining and oil
                                                                          exploration policies were
                                                                          designed to benefit certain big
                                                                          business houses and select
                                                                          corporates. State policy has
                                                                          brazenly become an instrument in
                                                                          the process of accumulation of
                                                                          capital..........The recent revelations
                                                                          have confirmed the hard truth. The
                                                                          prime minister presides over a
                                                                          cabinet in which some are
                                                                          advocates of certain business
                                                                          interests and some are
                                                                          businessmen themselves. A few are
                                                                          lawyers who have represented the
                                                                          very corporates with whom they
                                                                          have to deal with in the portfolios
                                                                          they look after. It is illegal money
                                                                          generated by the corrupt big
                                                                          business-politician-bureaucrat
                                                                          nexus that is flowing into the
                                                                          political system and perverting
                                                                          politics and democracy. There is a
                                                                          direct link between this corruption
                                                                          and the illegal money which is being
 Disclaimer: This maze is an Artist’s impression of 2G and other Orgy
parties. Any resemblance with persons partying in public or private not   used on a large scale in elections..”
                co-incidental, more likely to be factual.
                                                                                       Prakash Karat .-CPI(M)
Karnataka Landscams



                                                            Land Scam in Karnataka has occurred in this decade in many
                                                            forms
                                                            • over – acquisition for development projects (e.g. NICE)
                                                            • ‘fixed’ auction of govt lands at low prices, to ‘interested’
                                                               parties
                                                            • Using discretionary powers for allocation to ‘interested’ trusts,
                                                               education institutions, mutts, companies, political favourites,
                                                               relatives, friends etc.
                                                            • De-notification of land
                                                            • in the name of acquisition for SEZ from farmers
                                                            • Handing over forest land to companies


• According to AT Ramaswamy committee that investigated first phase of Land
  scams (upto 2004 ?) about 41,000 acres of land in and around was
  scandalously grabbed
• NICE over-acquisition scam amonuts to more than Rs. 10,000 crores
• Taking a conservative price of Rs. 1000/sq.ft. for land grabbed (41,000 acres)
  works out to loot of Rs. 1550 Crores
• Value of land grabbed by Yediyurappa family alone in and around Shimoga
  alone, said to amount to Rs. 2000 Crores
• Yediyurappa Govt has denotified at least 600 acres of prime land in and
  around Bangalore, with a value of around Rs. 3800 crores
• Lokayukta is investigating 18 cases of Land grab by CM Yediyurappa alone
• Lokayukta filed an FIR and Urban Development Minister Katta had to resign
• Any time an FIR may be filed on CM in any of these cases
Karnataka Minescam
                                                            Mining scam mainly consist of
                                                              • Mining without required lease license
                                                              • Extending license to adjoining areas, state also
                                                              • Illegal transport, Export of minerals
                                                              • Extortion from illegal mining companies
                                                              • Tamper with land records to obfuscate borders and
                                                                illegal mining areas
                                                              • Conduct mining with forged license papers
                                                              • Using forest areas and free areas as dumping ground
                                                              • Undervalue exports to a fromt company
                                                              • Evasion of taxes on mining and exports

                                                            • Reddy brothers of Bellary owning Oblapura Mining
                                                              Company are the major perpetrators
                                                            • Used their proximity with former AP CM YSR and current
                                                              BJP govt to cover-up and carry on all illegal activitis

• 2003-04 to 2009-1010, a total of 304.91 lakh tonnes of iron
  ore had been exported without valid permits. 71.28 lakh
  tonnes was illegally exported in 2009-10 alone.
• the nominal value of the illegally exported iron ore from
  Karnataka comes to Rs 15,245 crore
• CEC appointed by Supreme Court has indicted OMC of
  Reddy brothers of most suspected scam methods listed
  above
• CEC has also indicted both state governments of
  allowing and conniving with illegal activities of mining
  companies
• ED has estimated IT evasion of at-least Rs. 86 crores
  using undervalued exports to a front company
• Total estimated loot in mining scams is Rs. 22,000 crores
• Supreme Court has banned mining in 19 mining leases in
  Bellary area and exports .
Kar(nataka)
                      Kar(nataka) Circus
                                              TAGS our LEADERS have earned us

                                              • Karnataka seen as most corrupt
                                                states in India
                                              • State ruled by real estate and
                                                mining mafia
                                              • Fixing and toppling of Govt.s by
                                                the Mafia
                                              • Operation Lotus to Resort politics,
                                                they've done it all
                                              • Average rate of MLA around Rs. 50
                                                crores




“Karnataka is on the path of becoming number one state in the country in corruption….”
             Prof. G Venkatasbbayya veteran scholar - in the Presidential Address of 77th Kannada Sahitya Parishath
                                                                                                          Parishath
Black Money - Swiss Banks, Hawala and Mutts
                                                   • Corruption scams are not the only form in
                                                     which we are being looted by the rich and ugly
                                                   • Legal/Illegal Tax evasion, Black Money,
                                                     Hawala, Depositing black money in - Swiss
                                                     Banks and other tax havens, underworld and
                                                     religious mutts – are some other forms
                                                   • This rich and ugly brigade include politicians,
                                                     bureacrats, actors, industry captains, traders,
                                                     underworld dons
                                                   • Most of such money is earned in shady
                                                     activities and deals

India is first among deposits in Tax havens,
• over 3 times the 2nd and 3rd runner-up - UK
  and Russia,
• 14 times 4th and 5th Ukraine and China
• India lost over $ 460 Billion (Rs. 21 Lakh
  crores) since 1947 in illegal capital outflows
• Losing Rs. 240 crores per day in illegal
  outflows
• India has a 74th place per Transparency
  index even below Pakistan
Subverting Democracy - Bribing Voters to Fixing Govt.s
                                                                    “ Electoral corruption has taken several obnoxious forms
                                                                      • funding of parties with black money by corporates
                                                                        and underworld
                                                                      • Bribing of leaders for party tickets
                                                                      • Overspending on elections
                                                                      • Dubious means (e.g. Paid news) to cover-up
                                                                        expenditure over legal limits
                                                                      • Bribing of voters in cash or kind (sari, liquor etc.)
                                                                      • Bribing of voters with post-election bounties
                                                                      • Bribing/Horse-trading, offering ministership/other
                                                                        positions to MLA/MP to defect and manufacture
                                                                        majority
                                                                      • Bribing for vote of confidence
                                                                      • Auction of ministry/ministers for highest bidder from
                                                                        corporates
                                                                      • Fixing of governments by likes of Amar Singh on
                                                                        behalf of corporates like Tata-Ambani
• It is said that
       • Rs. 50 -100 crores required for a ‘becoming’ a MLA
       • Rs. 500 crores required for a ‘becoming’ a MP
• In horse-trading for forming and retaining BJP government
  in Karnataka , price of MLA shot up from few crores to 50
  Crores
• In 2009 Lok Sabha Vote of Confidence MPs were offered up-
  to Rs. 500 crores
• Hence MP/MLAs resort to massive corruption to recoup the
  expenditure, often even resorting to bribes for asking
  questions in LA or Lok Sabha and worse
• Upper House (Rajya Sabha) seats are being auctioned to
  corporate reps (e,g, Anil Ambani, Rajeev Chandrashekhar)
• They often serve in Committees/Task forces that have an
  impact on their business, in clear case of conflict of interest
ABC of Indian Media by P Sainath
                                                                    The dominant media are
                      Advertising                                   not pro-corporate or
                                                                    pro-big business. They

                               Bollywood                            are corporates. They are
                                                                    big business. Some
                                                                    have margins of profit
                                                            Crime that non-media outfits
                                                           Cricket might envy. Media
                                                          Celebrity corporations are into
                                                                    hundreds of businesses

                                 CORPORATE                          beyond their own
                                                                    realm......
. . ... The Indian Premier League
represents an advanced merger of
corporate control, political power and
media stenography. The media cover the
warts in that enterprise only when forced
to by its internal feuds. Corporate bosses
own cricket teams. The nation’s most
loved sport stands privatised. Media
companies own IPL teams too, or are
their media sponsors. Political
heavyweights are the big bananas in the
IPL Republic. These links are structural
and not about individuals....
 The media are mostly stenographers to power, not its banana peel. Especially to corporate
 power. The Radia tapes, whether in origin, content or fallout, do nothing to dampen that
 dictum..... If the Radia tapes show us anything, they show us again who runs this country.
 Corporates...... Given this long corporate-media jugalbandhi, should it surprise us that a
 lobbyist for two giant business groups is able to influence which story will appear on what
 page of which newspaper and even who will write it?
Judiciary aids or abets corruption
                                                             “
                                                                  Judicial system that is expected to the
                                                                 watchdog to prevent and punish corruption
                                                                 is aiding or abetting high level corruption in
                                                                 many ways
                                                                   • Long delays in the judicial process
                                                                   • Many loopholes that aids powerful escape
                                                                   • Poor conviction rates, few instances of
                                                                      powerful going to jail ( 11 Of 46 major
                                                                      cases since 1947)
                                                                   • Some in judiciary has strong links with
                                                                      politician-bureacracy-business nexus
                                                                   • Corruption in the judiciary at all levels
                                                                   • Corruption has reached higher echelons
                                                                      of high and supreme courts also

  Some of the instances of corruption at judiciary
  • A former chief justice of Supreme Court is accused of serous corruption,
    apart from “judgement fixing” in many cases of major scams including
    Karnataka illegal mining scam
  • Several High court justices (including Chief Justices) are accused of
    large scale corruption
  • Many Justices have refused to voluntarily disclose their assets
  • Known Assets of many Justices indicate serious large scale corruption
  • Some of the cases in which alleged “judgement fixing” has taken place
    include – Karnataka MLAs defection/disqualification
  On the positive side, in 2G and Commonwealth scams judiciary
  has shown exemplary commitment, that shown the possibilities

“...Our Republic will drown if corruption gains control of State power and lucre purchases that most important wing of the State. The
judiciary. In these days of graft seeping into every corner of the nation, the risk of the poor perishing and the rich grabbing the nation’s
resources is serious. To regain ‘self-rule’, it is not enough to mouth platitudes; a new do-or-die movement must be launched where all
rogues, rascals and freeloaders are eliminated..... But in such a time of crisis, the former Chief Justice of India (CJI), KG Balakrishnan,
has been accused of horrendous corruption.... Even more disgraceful is his refusal to step down as chairperson of the National Human
Rights Commission (NHRC)... ..it is the prime minister’s job to show him the door without delay. ..”
Policies beget Scams - Evolution
                                                                  Neo- Liberal-Accelerated (Package-4) :
                                                                  Fixing Governments, Minister, PM, Cabinet etc. - Auction
    2005-2011                                                     to highest bidder (open to Foreign Business and Govt.
    Neo-Liberal (Accelerated)                                     also) – 2G, Nuclear Deal
                                                                  Sell/Lease Natural Resources (Mine, Gas/Oil, Forests,
                                                                  Spectrum ) – Landscams, Minescams + Package 3
                                                         Scam Package – 4: Typ scam 10,000s of Cr.s, Max Rs. 1.76 Lakh Cr.s,
                                                         15 scams in 6 years, 1 in 5 months
    1999-2004
    Neo-liberal
                                            Neo- Liberal(Package-3) :
                                            Polcy fixing (New or Change) - Auction to highest bidder (open to Foreign
  1991-1998                                 Business also) – e.g. Telecom,
  Liberalization                            Sell/Lease Public Assets (Land, Water) – e.g. Landscams
                                            Favored for Privatization of PSUs – e.g. BALCO + Package 2
                   Scam Package – 3: Typ scam 1000s of Cr.s, Max Rs. 1.15 Lakh Cr.s, 10 scams in 6 years, 1 in 7 months




                     Liberalization (Package-2) :
1948-1991 Pre-
Liberalization       Fixing Sectoral Policy favorable to a Company (e.g. Import Excise policy on Petro
                     products fixed in favor of Reliance ) + Package 1
                      Scam Package – 2 : Typ scam 100s of Cr.s, Max Rs. 5,000 Cr.s, 13 scams in 8 years, 1 in 7 months

                                                                                             Scam Package – 1:
           Pre-Liberalization (Package 1)                                                    Typ scam 10s of Cr.s
                                                                                                 Max Rs. 64 Cr.s
           Industry License; Exemptions, Incentives, Fiscal/Budget Policies
                                                                                               8 scams in 44 years
           Govt Purchases, Contracts (e.g. Bofors)                                                 1 in 6 years
Flowchart of Corruption Industry
(Disclaimer : This is a picture of only a subset of respective segments. Does not mean whole segment is part of the industry)

                                                                                                                Deal to Fix Policy :
                                                            Bureacracy                                          New/ Change,




                                                                                                                Deal to
                                                                                                                Fix Min, CoM, PM,



                                                                                                                  Policy-New/ Change,
                                                                                                                  Budget, Post Pliant
                                                                                                                  Offcrs, Remove non-
                                                                                                                  pliant offcrs,
                                                                                                                  oversee services
                                                                                                                  from Bureacracy,
                                                                                                                  Scam cover-up,
                                                                                                                  delay action
                                                                        Cabinet
                                                                        of
                                                                        Ministers

                                                                                                          License, Waivers, Exemptions,
                                                                                                          Influence Ministers, Prepare
Party/                                                                                                    reqd docs, File pushing, Reveal
election                                                                                                  info, Sabotage investigation,
Funds,                                                                                                    Weaken case in court
Buy MPs,
Fix
Coalition

                                                                                                           Pay-off, Kick-backs,
                                                                                                           Shares, Employ
                                                                                     Electroral            Relatives, Plum
  Tax                   Black                                                        Corruption            Position
 Havens                 Money
Why Corruption ? Crony Capitalism !
                                                        Banana republics are run on cronyism. People of great power
                                                        wield great power, but people of lesser power or people who have
                                                        fallen out of power go to jail without adequate evidence or their
                                                        bodies are found in the trunks of cars. The danger is that you could
                                                        degenerate into that kind of atmosphere unless the necessary parts
                                                        of government play their role in upholding the law and fine, let no
                                                        one be above the law......So I think it can happen, I mean a Banana
                                                        Republic kind of an environment could emerge, if we don’t put an
                                                        end to this kind of thing and under the guise of freedom of speech or
                                                        the guise of many other numbers of so-called rights of democracy
                                                        abused, the luxury of a democracy.
                                                                                                                 Ratan Tata

       When a person like him makes a statement, I think we should take him seriously," -       It was gratifying to have the
                                                                           Sharad Pawar           head of India’s most
“In fact, every policy decision, or                                                               reputed business house
                                                                                                  confirm the existence of
change in policy, in most of these
                                                                                                  crony capitalism in the
sectors are being made based on                                                                   country. True, others have
the money which is handed out by                                                                  believed this for 20 years
the consortium of Indian big                                                                      but it carries more weight
business and MNCs. Whole                                                                          when Ratan Tata says so.
institutions and state agencies are                                                               As he put it in a television
suborned by big capital. India is fast                                                            interview with admirable
                                                                                                  candour: “Yes, I can see
reaching the level of Thailand,
                                                                                                  evidence of it. ” Gee
Philippines and Indonesia - all                                                                   whiz! It exists, after
countries which see the free play of                                                              all.....Mr. Tata rightly warns
MNCs and crony capitalism...                                                                      us against becoming
                       Prakash Karat                                                              a banana republic.....
                                                                                                                P Sainath

If four public figures across the spectrum are agreeing..It must be true.. Corruption is caused by
  Neo-
  Neo-liberal policies                  driven by and encouraging CRONY CAPITALISM !
APL, BPL and IPL
incentiVes for The rich and ugly, death Sentence for farmers
                                                     • Corruption scams and illegal capital outflow are not the
                                                       only form in which the rich and ugly loot
                                                     • Govt. gifted away to rich and ugly Rs. 5 lakhs crores in
                                                       last budget, under just three heads - corporate income
                                                       tax, excise and customs duty by foregoing revenues (=2.5x
                                                       the 2G scam losses)
                                                     • Rs. 21 lakhs crores (or half a trillion dollars) is the legal
                                                       loot of rich in last 5 years (since 2005-06)
                                                     • It is also equal to the black money siphoned off since
                                                       1948. But this legal loot done in public in budget , has
                                                       equalled it in just 5 years
                                                     • The same budget cuts Rs. 5568 Crores from Agriculture
                                                     • While Food subsidy for the poor is being cut in the name of
                                                       APL and BPL, Super-rich Scandal-infested IPL is given IT
                                                       rebate
                  “If auctions are not taking place then what is the basis for
                  you to calculate a loss? ... We have a budget which gives
                  subsidy for food, Rs.80,000 crores per annum, some
                  people may say these foodgrains should be sold at
                  marketplace. Will we say then because they are not sold at
                  market prices, because you are giving them a subsidy, it is
                  a loss of Rs. Rs.80,000 crores?

Firstly, he equates plunder with the pathetic subsidies tossed
at the world's largest hungry population. We rank 67th out of
84 nations in the Global Hunger Index. Secondly, subsidies
for the super-rich soar each year. While food subsidies for
hundreds of millions were cut by Rs. 450 crore in the last
budget.
“Mera Baap Ka Sapna..Sab ka Maal Apna”
                   Sapna..
                        ..Sab         Apna”
Ambanis dizzying growth                                 • Ambanis practised the worst form of crony capitalism and been
(RIL – primary arm of Ambanis        Mera baap ka sapna the prime drivers of Neo-liberal policies that are responsible both
only, not counting Anil’s empire)     Sab ka maal apna    for Corruption and Price Rise
                                                        • UPA and NDA and other regimes have been pliant to Ambanis
1980 Rs 212 Cr (Tot Inc)                                • Ambanis had a big role in 2G scam, fixing Telecom & Oil ministers
1985 Rs 744 Cr (Tot Inc )
                                                        • Ambani stranglehold on Energy policy has direct impact on price
1991 Rs 1,944 Cr (Net Worth )
                                                          rise
1995 Rs 8,405 Cr ( Net Worth)
2000 Rs 23,024 Cr ( Turnover)                                  • Turnover has grown > 10 times in
2005 Rs 89,124 Cr (Turnover)                                     this decade
2010 Rs258,651 Cr (Turnover)                                   • Networth increased in 90s 12 times
                                                               • Total income increased in 80s 9
Profits of Ambanis grown
  • 16 times in 1980s                                            times
  • 8 times in 1990s                                           • growth in 80s due to ‘fixing’ of yarn
                                                                 customs, excise, import-export duty
  • 7 times in in this decade
                                                                 policies
                                                               • growth in 90s due to PSU
                                                                 Privatization, diversification into oil
                                                                 refineries, telecom
                                                               • growth in this decade due to growth
                                                                 in Telecom, diversification into Gas,
                                          Mera Sapna             Retail etc.
                                          Sab ka Apna          • In every diversification policies fixed
                                                                 to Ambanis advantage

                                                               •   Handing over a national asset -Krishna
                                                                   Basin – for a song to Ambanis
                                                               •   combined with therir entrenched
                                                                   position in oil, virtually makes energy
                                                                   sovereignity to Ambanis

R”… It wasn’t long ago that a whole session of Parliament went by in just debating the dispute between the Ambani
brothers. A private spat over a public-owned resource called natural gas. Oddly enough, Parliament has never had a
                                public-
whole session focussed on agriculture. Not even through the sector’s worst crisis in the past decade. Whether it is gas,
spectrum, or mining, luxury private townships or other dubious land deals, the last 20 years have seen the consolidation
                                                       India....”
of corporate power on a scale unknown in independent India....”
Price Rise and Government Policies
                                                          •     Price rise is neither market nor natural
                                                                phenemenon
                                                          •     It is caused or affected by delibarate Govt policies
                                                          •     It can also be prevented or fought by right policies
                                                              unprecedented price rise in last few years are caused by Neo-
                                                              liberal policies
                                                                 • Oil Price de-regulation
                                                                 • Allowing Commodity forward trading
                                                                 • Allowing 2.5 times excess stocking in Govt godowns
                                                                 • Dismantling of PDS in the name of targeting
                                                                 • Corporate takeover of retail (including food)
                                                                 • Reducing role of public agencies in commodities
                                                                   wholesale trade
                                                                 • Import-Export policies of essential commodities
                                                                 • Cut in subsidies to agriculture inputs making it unviable
                                                              Also not fighting following with right policies
                                                                 • Commodity speculation
                                                                 • Hoarding and black-marketing
Policies that can fight and prevent price-rise
• Ban speculative and forward trading in essential commodities
• Use excess foodgrain stock for universal PDS
• Remove Ad valorem tax on petroleum products
• restructure tax system and reduce drastically Rs. 30 of indirect
  tax on petroleum
• Ban corporate and FDI entry in food retail
• Import-export policy that encourages production and reduces
  domestic prices
• Comprehensive policy to make agriculture viable
       • Restore subsidies for agriculture inputs
       • Priority lending at 4 % interest
       • Procurement prices that encourage producers
       • Other policies recommended by National Commission on
         Farmers in the wake of widespread Farmers suicide
Corruption, Price Rise and us
                                                      •   Unprecedented levels of both
                                                          Corruption and Price Rise - are
                                                        caused and encouraged by neo-liberal
                                                        policies
                                                      • Neo-liberal policies are being driven
                                                        and encouraged by Crony Capitalism
                                                        that is growing rapidly in the last 20
                                                        years of so called ‘Economic Reforms’
                                                      • Both are symptoms of a system
                                                      • need to overhaul of the system to
                                                        eradicate them
2G scam losses = 1.76 lakh crores
           = 2 years of cost of universal PDS
           = 5 years of RTE implementation
Commonwealth scam = 58,000 Crores
           = 2 Lakh Primary Health Centers
           = 12 lakh low-cost houses
           = 1 lakh PHC + 6 lakh houses
Tax Concessions to Rich in 2011 budget
  = 1.20 lakh crores
  = I year of REGA like program + 1 year RTE impl
  = 2 Loan waiver schemes
Revenues Foregone per 2011 budget
  = 5 lakh crores (corp IT+ Customs+ excise)
  = 2 years of (universal PDS + REGA like program +
  Loan waiver schemes + RTE program)
Instruments to fight Corruption
                                                 Our constitution provides for several instruments to
                                                  fight corruption

                                                 CAG : Comptroller and Auditor General
                                                 CBI : Central Bureau of Investigation
                                                 JAC : Joint Accounts Committee
                                                 JPC : Joint Parliamentary Committee
                                                 CVC : Chief Vigilance Commissioner
                                                 Acts like FEMA, Prevention of corruption, Money
                                                  Laundering
                                                 Lokayukta
                                                 Right to Information Act
                                                 Public Interest Litigation


• But most instruments (e.g. CAG, CBI, JAC, JPC)
  are meant to be used by the Executive to
  investigate cases
• Hence will of Executive is must to use them
• Pressure for Executive to use them have to
  come from MP/MLAs or Media
• Citizens have very few instruments to fight
  corruption (Lokayukta, Right to Information Act,
  Public Interest Litigation)
• Some of them are not available in all states (e.g.
  Lokayukta, CVC) or centre (Lokpal)
•
Effectiveness of Anti-Corruption Measures
                                                    • Effectiveness of most of the measures have
                                                      been pathetic in major scams as shown by rate
                                                      of conviction (6 Out of 38 Major cases since
                                                      1991)
                                                    • At best, there have been political ‘sanyas’
                                                    • Bureacracy is rarely even accused and never
                                                      convicted or punished
                                                   Some of the famous acquittals or no-actions
                                                    • Bofors, Karnataka Landscam, Karnataka
                                                      Minescam, HDW, BALCO privatisation, Vote
                                                      for Notes-1, Vote for Notes-2, Operation Lotus
Some of the reasons for ineffectiveness
• Lack of will, commitment from Executive
• Lack of urgency in taking cognizance of the
  scam
• Political/Bureacratic intervention in the
  investigation and later phases
• In-ordinate delay in investigation, proceeding
  and prosecution
• Witnesses turning hostile due to inducement,
  pressure or threat
• Destruction of evidence by powerful accused
  often in connivance with business-
  bureacracy-political nexus
• lack of deterrent punishment
Political will to fight Corruption
                                                  “
                                                  • Political parties who play a major part in creating
                                                    pressures on Executive not shown the will to act
                                                    on corruption and price-rise
                                                  • Bofors has been a case that despite its political
                                                    importance, govt.s of alternative political
                                                    alliances led by Congress & BJP have not shown
                                                    political will to take it to its logical conclusion
                                                  • Hawala Diary case where politicians from both
                                                    alliances (led by Congress & BJP) were involved
                                                    was buried
                                                  • Frequent noises at election time about Black
                                                    Money, Swiss bank deposits similarly has not
                                                    seen follow-up from both

• Radia tapes and wikileaks have exposed the
  nexus of all political parties (with the exception of
  left) with Indian & Foreign Business, Foreign
  Govt,s, Bureacracy
• Similarly published assets and its growth after a
  term (in govt or opposition) of candidates of
  various political parties (again with exception of
  left) have shown the corruption of political parties
• Enthusiastic support to neo-liberal policies (again
  with exception of left) have shown their lack of
  will to fight unprecedented levels of corruption
  and price-rise
be-
     Is Jan Lokpal Bill be-all of fight against Corruption ?
                                                     •“ Anna Hazare’s fast for
                                                     pressing for Lokpal Bill has
                                                     galvanized the people
                                                     expressing the frustration
                                                     against denial, inaction in the
                                                     face of massive corruption,
                                                     • Demanding participation of
                                                     civic society in drafting bills of
                                                     importance also is a positive
                                                     development,
                                                     •But many aspects of Jan
                                                     Lokpal Bill proposed and the
                                                     nature of some elements trying
                                                     to control the movement raises
                                                     many serious issues

                                                     Few other weaknesses also
                                                       are noteworthy
                                                     • Jan lokpal bill as a be-all of
                                                       anti-corruption measures
                                                     • Apolitical and ignoring of all
                                                       parliamentary institutions
                                                     • Narrow definition of
                                                       corruption
                                                     • Lack of understanding of
                                                       the root of problem – crony
                                                       capitalism and neo-liberal
                                                       policies

“.....proposed Lokpal has the makings of a super-monster. By absorbing all existing anti-corruption agencies, the Lokpal will have
complete powers of independent investigation and prosecution. It will be an institution with overriding powers — but without any
accountability. As such, ........ If the Jan Lokpal is to live up to its jan character, its authoritarian and centralised structure should be
dispensed with and it should be turned into an instrument of people's empowerment. ..”                   Prof K N Panikker
We pledge to have
                                  Price-
ZERO tolerance for Corruption and Price-Rise
            We PLEDGE TO
            1. Have ZERO tolerance for corruption at high places and price-
               rise
            2. If we see, hear corrupt practices, we will speak out
            3. Support and protect whistleblowers against corruption in all
               organizations including corporates
            4. Use RTI to expose corruption in all organizations
            5. Refuse to sell vote for notes or other allurements
            6. Refuse to vote to a candidate whose assets significantly
               increased after a term
            7. Utilize all avenues to participate in policy-making and
               oversseing of public programs
            WE DEMAND
            1. A comprehensive effective Lokpal Bill by this August 15
                drafted with public consultation
            2. Teeth to Karnataka Lokayukta including cabinet ministers in
                the jurisdiction and suo moto powers
            3. Resignations of all accused in the recent scams - 2G,
                Commonwealth, Karnataka Mine and landscams
            4. time-bound action and speedy conviction of accused in recent
                scams
            5. RTI to be extended to private organisations including
                corporates
            6. Protection of Whistleblowers Bill
            7. Ban on Forward trading of essential commodities          If we see, hear
            8. Reduction of indirect taxes on Petroleum products
                                                                        anything about
            9. Strict action on Black-marketeers and hoarders of essentials
            10. Universalisation of PDS
            11. Implementation of Swaminathan Commission                CORRUPTION,
                recommendations (2005) to make Agriculture viable       we will speak out
Samudaaya grateful ly acknowldeges
                                                                                     Quotes, Resources
 Cartoonist                          Cartoon Publisher
                                                                                     Justice V R Krishna Iyer
                                                                                     Prof. K N Panicker
  Mahamud                          Sudha, Prajavani, Deccan Herald                   P Sainath
  Satish Acharya                    Sunday Midday                                    Dr. Manmohan Singh
  Surendra                          The Hindu                                        Ratan Tata
                                                                                     Sharad Pawar
  Keshav                                                                             Prakash Karat
  R Prasad                           Mail Today
  Unny                               Indian Express                                  India Today
  R K Laxman                         Times of India                                  Outlook
                                                                                     Frontline
  Ravishankar                        India Today                                     Peoples Democracy
  Manjul                             DNA                                             IDEAS
  Raghupathy Sringeri                                                                Transparency International
                                                                                     CAG
                                     Amul                                            Wikileaks
And many other unknown unnamed unsung ones,
including many Whistleblowers , who unearthed the scams
And not to forget
GOOGLE who helped us discover many of them

Produced by Karnataka Raajya Samudaya Samanvaya Samiti , No.162 6th Main, 4th Phase 7th Block BSK 3rd Stage
Bangalore 560085. Ph.No.s 9449528643/9480148963/ 9844109706 http://samudaayacampaign.wordpress.com/

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Bhrastachar poster show

  • 1. SAY NO TO CORRUPTION AND A Samudaaya Campaign PRICE RISE
  • 2. Adarsh, Satyam and Common Wealth! What virtuous names for vicious scams! Spate of corruption scandals 2G Spectrum : Rs. 1,76,000 cr. Commonwealth : Rs. 58,000 Cr. Mining Scandal : Rs. 22,000 cr Land Scams : Rs. 17,000 cr India is the only country with Annual GDP Growth 8% Dollar billionaires (49 spawned in one decade) 54 GDP share of Dollar billionaires 31 % Population below offiicial poverty line 48% Population spending Rs. 20 (half a $) per day 77 % Population chronically hungry Rs. 23 Crores Stunted children (under 3 years) 38 % Anemic children (under 3 years) 79 % Anemic pregnant women 58 % Spate of questions ? Why so many scams ? Why so frequent ? Why a massive increase in quantum ? Why denials ? Why cover-ups ? Why has it become acceptable? What has brought us this far ? Why the media is ineffective ? Why the silence on corporates ? Why should we take this lying down ? What the corruption has got to do with Price Rise ? What can we do ? Why ?...What ? .How ?..
  • 3. Vegetable Price Rise reminding IPL Auction ! • Vegetable price increase 67% in 9 months • Onion prices jumped from Rs. 80 to Rs.110 this Jan • Petrol prices hiked 7 times since deregulation • Speculation in essential commodities =1.5 times budget • corporate share in food retailing tripled in past 4 years “ • Onion symbol of food inflation of 2011, as Sugar in 2010 • Waiting for 8th oil price hike for state elections to be over ! • Food Price increase at 2011 Jan at 18.32 % above 2010 jan level (2010 was the worst year for food price increases • month on month food increase also above 9% most part of 2010 touching 11 in Nov 2010 Retail Price Rise (per kg) in Karnataka (in last one year) Apr 2010 Max Onion Rs. 11 Rs. 65 (Dec 10) Tomato Rs 14 Rs. 45 (Dec 10) Potato Rs. 12 Rs. 22 (Dec 10) Groundnut oil Rs. 64 Rs, 80 (Jan 11) Urad Split Rs. 73 Rs, 80 (Dec 10) (GoI data at NIC website)
  • 4. Corruption has always been around, everywhere ! …….Major Scams since 1947 1948-1991 (in crores of Rs) Mundhra Scandal 1957 1.2 Dhamateja Loan 1960 22.0 Kairon (Punjab CM) 1963 NA Biju Patnaik (Ors CM) 1963 NA Kuo Oil Deal 1976 2.2 Antulay Trust 1981 30.0 HDW Commissions 1987 20 Bofors Pay-off 1987 64 1992-1998 (in crores of Rs) Harshad Mehta Security 1992 5000 Indian Bank Rip-off 1992 1300 Sugar Import 1994 650 Vote for Notes - 1 1995 ?00 MSShoes Share Price Rig 1994 699 Bihar Fodder Scam 1996 950 Urea Import 1996 133 Hawala Jain Diary 1996 ?00 Bhansali Financial Pyramid 1997 1000 Harshad Mehta Share Price Rig1997 ?000 Sukharam Telecom 1997 1500 Companies Vanishing Post-IPO 1997 330 Teak Plantation 1997 2600
  • 5. And some more! Scams have never been in short supply here 1999-2004 (in crores of Rs) Mobile License Policy Change 1999 46,000 Modern Foods Privatisation 2000 2,050 BALCO Privatisation 2001 4,050 Ketan Parekh K-10 Scrip Rig 2001 1,250 UTI Collapse 2001 4,800 Dinseh Dalmia 2001 595 Stock Market collapse 2001 1,15,000 Wheat Import 2003 10,000 NICE Land Grab 2004 10,000 Karnataka Land Scam – 1 2004 1,550 2005-2011 (in crores of Rs) IPO-Demat 2005 146 Taj Corridoor 2006 175 Satyam 2008 10,000 Army Ration pilferage 2008 5,000 Rice Export 2009 2,500 Madhu Koda Jhrakand Mine Lease 2009 4,000 Orissa Mine Lease 2009 7,000 Karnataka Illegal Mining 2009 22,000 Operational Lotus 2009 ?,000 Karnataka Land Sacm - 2 2009 5,800 Vote for Notes - 2 2010 ??,000 Commonwealth Loot 2010 58,000 Resort Politics 2010 ??,000 2G Spectrum 2011 1,76,000 Hassan Ali Tax evasion 2010 89.000
  • 6. Scams increased in torrents after Economic Reforms in 1991 Period/ Number of Scam loot Remarks Yrs (in Rs. Crores) Resig Convi Major Typ Max Tot nation ctions Scams s 1947-1990 5 5 8 Tens 64 150 rot reaches PM 45 (2+3) 1991-1998 3 3 13 Hund 5,000 25,000 PM is accused (2+1) reds 8 1999-2004 0 2 10 Thou 1,15 2 No arrests sands 6 Lakh lakhs 2005-2010 1 1 15 Ten 1,76 4 Denials till FIR; (1+0) thous Arrests in 4 cases 6 Lakh lakhs ands • Major scam occurances gone up from 1 in 6 years to 1 in 6 months • Scams are direct result of economic reforms in 1990s unleashed by Manmohan Singh and later accelerated by Vajpeyee and Dr. Singh’s regimes • Scam size grown in torrents from tens to hundreds, thro’ thousands to lakhs of crores in the 4 phases • Resignations , arrests and convictions reduced to trickle and cases are delayed indefinitely • Scam has reached top echelons of Politicos, Bureaucracy, Army, Industrialists and Judiciary too
  • 7. COMMONWEALTH COMMONWEALTH GAMES LOOT Rs. 58,000 Cr. Original Estimate Rs. 617.5 Crores Cost of Commonwealth Games 2002 (UK) : Rs 2,100 crores 2006 (Australia) : Rs 5,000 crores 2010 (India) : Rs 60,000 crores!!! 2014 (UK,estimated) : Rs 2,200 crores! • Every concievable trick was used to loot - overcharge, fake front companies to cover up nepotism, no or single tender, • 90% of infrastructure cost was looted • Every concievable item was overcharged – from toilet paper, transport to stadia cover- • Org Com violated all conceivable norms to loot and cover-up the loot and violations • Consistent bad quality and horrible delays also did not wake up the authorities anti- • All anti-corruption checks failed to detect, prevent the malafied action of OC and its coterie • All bodies above OC including Central Govt. denied any wrongdoing till it was impossible to continue • Investigation, action to presecute is also too less too late “ The Commonwealth Games were no showcase, but a mirror of India 2010. If they showcased anything, they showcased Indian crony, casino capitalism at its most vigorous. To build such a society and then expect The Games won't reflect its warts and sores is high optimism… ” P Sainath The Hindu 06 Jun 2010
  • 8. 2G Orgy Of Rs. 17,60,00, 00,00,00,000 Why did we decide to audit ? “In January 2008, Department of Telecommunications issued 120 new licences for unified access services on the same day. These licences were issued at price which had been discovered in 2001. Issuance of 120 licences in just one day and at a price discovered in 2001 has drawn the attention of Media, Parliament and informed members of the civil society. Questions have been raised regarding the transparency in the allocation process and the failure in maximization of revenue generation from the allocation of spectrum, which is a national asset. This department had been receiving innumerable references from Members of Parliament and other sources repeatedly, questioning the allocation process and the price fixed for such allocation ” from Executive Summary of CAG Report on 2G Spectrum “Who says there was no auction in 2 G ? There was in fact a successful auction of spectrum — only it was not conducted by the government but by its corporate sector cronies who made a fortune on the deal. Having been gifted that scarce public-owned resource by the public- government, the cronies then auctioned it privately for astronomical sums of money ..Also auctioned alongside were the government's individual Ministers,posts and integrity. Two auctions for the price of none..” P Sainath The Hindu Feb 21, 2011 none..”
  • 9. 12- 12-zero figure from Horse’s Mouth Rs. 17,60,00, 00,00,00,000 CAG Formula vs. Kapil Sibal Formula What CAG found on 2G Spectrum (i) Gaps in policy implementation (ii) Telecom Commission was not consulted (iii) Views and concerns of Ministry of Finance overruled (iv) Advice of Ministry of Law and Justice were ignored (v) Hon'ble Prime Minister's suggestions were not followed (vi) Arbitrary changes by DoT in the cut-off date. (vii) First Come First Served Policy was not followed (viii) Issue of license to ineligible applicants (ix) Presumptive value of spectrum allocated to 122 new UAS licencees and 35 Dual Technology licencees in 2007-08 (x) Value of additional spectrum allotted to 13 existing operators beyond contracted quantities from Executive Summary of CAG Report on 2G Spectrum
  • 10. 2G and other Orgy Partners courtesy : Radia Tapes “The telecom, mining and oil exploration policies were designed to benefit certain big business houses and select corporates. State policy has brazenly become an instrument in the process of accumulation of capital..........The recent revelations have confirmed the hard truth. The prime minister presides over a cabinet in which some are advocates of certain business interests and some are businessmen themselves. A few are lawyers who have represented the very corporates with whom they have to deal with in the portfolios they look after. It is illegal money generated by the corrupt big business-politician-bureaucrat nexus that is flowing into the political system and perverting politics and democracy. There is a direct link between this corruption and the illegal money which is being Disclaimer: This maze is an Artist’s impression of 2G and other Orgy parties. Any resemblance with persons partying in public or private not used on a large scale in elections..” co-incidental, more likely to be factual. Prakash Karat .-CPI(M)
  • 11. Karnataka Landscams Land Scam in Karnataka has occurred in this decade in many forms • over – acquisition for development projects (e.g. NICE) • ‘fixed’ auction of govt lands at low prices, to ‘interested’ parties • Using discretionary powers for allocation to ‘interested’ trusts, education institutions, mutts, companies, political favourites, relatives, friends etc. • De-notification of land • in the name of acquisition for SEZ from farmers • Handing over forest land to companies • According to AT Ramaswamy committee that investigated first phase of Land scams (upto 2004 ?) about 41,000 acres of land in and around was scandalously grabbed • NICE over-acquisition scam amonuts to more than Rs. 10,000 crores • Taking a conservative price of Rs. 1000/sq.ft. for land grabbed (41,000 acres) works out to loot of Rs. 1550 Crores • Value of land grabbed by Yediyurappa family alone in and around Shimoga alone, said to amount to Rs. 2000 Crores • Yediyurappa Govt has denotified at least 600 acres of prime land in and around Bangalore, with a value of around Rs. 3800 crores • Lokayukta is investigating 18 cases of Land grab by CM Yediyurappa alone • Lokayukta filed an FIR and Urban Development Minister Katta had to resign • Any time an FIR may be filed on CM in any of these cases
  • 12. Karnataka Minescam Mining scam mainly consist of • Mining without required lease license • Extending license to adjoining areas, state also • Illegal transport, Export of minerals • Extortion from illegal mining companies • Tamper with land records to obfuscate borders and illegal mining areas • Conduct mining with forged license papers • Using forest areas and free areas as dumping ground • Undervalue exports to a fromt company • Evasion of taxes on mining and exports • Reddy brothers of Bellary owning Oblapura Mining Company are the major perpetrators • Used their proximity with former AP CM YSR and current BJP govt to cover-up and carry on all illegal activitis • 2003-04 to 2009-1010, a total of 304.91 lakh tonnes of iron ore had been exported without valid permits. 71.28 lakh tonnes was illegally exported in 2009-10 alone. • the nominal value of the illegally exported iron ore from Karnataka comes to Rs 15,245 crore • CEC appointed by Supreme Court has indicted OMC of Reddy brothers of most suspected scam methods listed above • CEC has also indicted both state governments of allowing and conniving with illegal activities of mining companies • ED has estimated IT evasion of at-least Rs. 86 crores using undervalued exports to a front company • Total estimated loot in mining scams is Rs. 22,000 crores • Supreme Court has banned mining in 19 mining leases in Bellary area and exports .
  • 13. Kar(nataka) Kar(nataka) Circus TAGS our LEADERS have earned us • Karnataka seen as most corrupt states in India • State ruled by real estate and mining mafia • Fixing and toppling of Govt.s by the Mafia • Operation Lotus to Resort politics, they've done it all • Average rate of MLA around Rs. 50 crores “Karnataka is on the path of becoming number one state in the country in corruption….” Prof. G Venkatasbbayya veteran scholar - in the Presidential Address of 77th Kannada Sahitya Parishath Parishath
  • 14. Black Money - Swiss Banks, Hawala and Mutts • Corruption scams are not the only form in which we are being looted by the rich and ugly • Legal/Illegal Tax evasion, Black Money, Hawala, Depositing black money in - Swiss Banks and other tax havens, underworld and religious mutts – are some other forms • This rich and ugly brigade include politicians, bureacrats, actors, industry captains, traders, underworld dons • Most of such money is earned in shady activities and deals India is first among deposits in Tax havens, • over 3 times the 2nd and 3rd runner-up - UK and Russia, • 14 times 4th and 5th Ukraine and China • India lost over $ 460 Billion (Rs. 21 Lakh crores) since 1947 in illegal capital outflows • Losing Rs. 240 crores per day in illegal outflows • India has a 74th place per Transparency index even below Pakistan
  • 15. Subverting Democracy - Bribing Voters to Fixing Govt.s “ Electoral corruption has taken several obnoxious forms • funding of parties with black money by corporates and underworld • Bribing of leaders for party tickets • Overspending on elections • Dubious means (e.g. Paid news) to cover-up expenditure over legal limits • Bribing of voters in cash or kind (sari, liquor etc.) • Bribing of voters with post-election bounties • Bribing/Horse-trading, offering ministership/other positions to MLA/MP to defect and manufacture majority • Bribing for vote of confidence • Auction of ministry/ministers for highest bidder from corporates • Fixing of governments by likes of Amar Singh on behalf of corporates like Tata-Ambani • It is said that • Rs. 50 -100 crores required for a ‘becoming’ a MLA • Rs. 500 crores required for a ‘becoming’ a MP • In horse-trading for forming and retaining BJP government in Karnataka , price of MLA shot up from few crores to 50 Crores • In 2009 Lok Sabha Vote of Confidence MPs were offered up- to Rs. 500 crores • Hence MP/MLAs resort to massive corruption to recoup the expenditure, often even resorting to bribes for asking questions in LA or Lok Sabha and worse • Upper House (Rajya Sabha) seats are being auctioned to corporate reps (e,g, Anil Ambani, Rajeev Chandrashekhar) • They often serve in Committees/Task forces that have an impact on their business, in clear case of conflict of interest
  • 16. ABC of Indian Media by P Sainath The dominant media are Advertising not pro-corporate or pro-big business. They Bollywood are corporates. They are big business. Some have margins of profit Crime that non-media outfits Cricket might envy. Media Celebrity corporations are into hundreds of businesses CORPORATE beyond their own realm...... . . ... The Indian Premier League represents an advanced merger of corporate control, political power and media stenography. The media cover the warts in that enterprise only when forced to by its internal feuds. Corporate bosses own cricket teams. The nation’s most loved sport stands privatised. Media companies own IPL teams too, or are their media sponsors. Political heavyweights are the big bananas in the IPL Republic. These links are structural and not about individuals.... The media are mostly stenographers to power, not its banana peel. Especially to corporate power. The Radia tapes, whether in origin, content or fallout, do nothing to dampen that dictum..... If the Radia tapes show us anything, they show us again who runs this country. Corporates...... Given this long corporate-media jugalbandhi, should it surprise us that a lobbyist for two giant business groups is able to influence which story will appear on what page of which newspaper and even who will write it?
  • 17. Judiciary aids or abets corruption “ Judicial system that is expected to the watchdog to prevent and punish corruption is aiding or abetting high level corruption in many ways • Long delays in the judicial process • Many loopholes that aids powerful escape • Poor conviction rates, few instances of powerful going to jail ( 11 Of 46 major cases since 1947) • Some in judiciary has strong links with politician-bureacracy-business nexus • Corruption in the judiciary at all levels • Corruption has reached higher echelons of high and supreme courts also Some of the instances of corruption at judiciary • A former chief justice of Supreme Court is accused of serous corruption, apart from “judgement fixing” in many cases of major scams including Karnataka illegal mining scam • Several High court justices (including Chief Justices) are accused of large scale corruption • Many Justices have refused to voluntarily disclose their assets • Known Assets of many Justices indicate serious large scale corruption • Some of the cases in which alleged “judgement fixing” has taken place include – Karnataka MLAs defection/disqualification On the positive side, in 2G and Commonwealth scams judiciary has shown exemplary commitment, that shown the possibilities “...Our Republic will drown if corruption gains control of State power and lucre purchases that most important wing of the State. The judiciary. In these days of graft seeping into every corner of the nation, the risk of the poor perishing and the rich grabbing the nation’s resources is serious. To regain ‘self-rule’, it is not enough to mouth platitudes; a new do-or-die movement must be launched where all rogues, rascals and freeloaders are eliminated..... But in such a time of crisis, the former Chief Justice of India (CJI), KG Balakrishnan, has been accused of horrendous corruption.... Even more disgraceful is his refusal to step down as chairperson of the National Human Rights Commission (NHRC)... ..it is the prime minister’s job to show him the door without delay. ..”
  • 18. Policies beget Scams - Evolution Neo- Liberal-Accelerated (Package-4) : Fixing Governments, Minister, PM, Cabinet etc. - Auction 2005-2011 to highest bidder (open to Foreign Business and Govt. Neo-Liberal (Accelerated) also) – 2G, Nuclear Deal Sell/Lease Natural Resources (Mine, Gas/Oil, Forests, Spectrum ) – Landscams, Minescams + Package 3 Scam Package – 4: Typ scam 10,000s of Cr.s, Max Rs. 1.76 Lakh Cr.s, 15 scams in 6 years, 1 in 5 months 1999-2004 Neo-liberal Neo- Liberal(Package-3) : Polcy fixing (New or Change) - Auction to highest bidder (open to Foreign 1991-1998 Business also) – e.g. Telecom, Liberalization Sell/Lease Public Assets (Land, Water) – e.g. Landscams Favored for Privatization of PSUs – e.g. BALCO + Package 2 Scam Package – 3: Typ scam 1000s of Cr.s, Max Rs. 1.15 Lakh Cr.s, 10 scams in 6 years, 1 in 7 months Liberalization (Package-2) : 1948-1991 Pre- Liberalization Fixing Sectoral Policy favorable to a Company (e.g. Import Excise policy on Petro products fixed in favor of Reliance ) + Package 1 Scam Package – 2 : Typ scam 100s of Cr.s, Max Rs. 5,000 Cr.s, 13 scams in 8 years, 1 in 7 months Scam Package – 1: Pre-Liberalization (Package 1) Typ scam 10s of Cr.s Max Rs. 64 Cr.s Industry License; Exemptions, Incentives, Fiscal/Budget Policies 8 scams in 44 years Govt Purchases, Contracts (e.g. Bofors) 1 in 6 years
  • 19. Flowchart of Corruption Industry (Disclaimer : This is a picture of only a subset of respective segments. Does not mean whole segment is part of the industry) Deal to Fix Policy : Bureacracy New/ Change, Deal to Fix Min, CoM, PM, Policy-New/ Change, Budget, Post Pliant Offcrs, Remove non- pliant offcrs, oversee services from Bureacracy, Scam cover-up, delay action Cabinet of Ministers License, Waivers, Exemptions, Influence Ministers, Prepare Party/ reqd docs, File pushing, Reveal election info, Sabotage investigation, Funds, Weaken case in court Buy MPs, Fix Coalition Pay-off, Kick-backs, Shares, Employ Electroral Relatives, Plum Tax Black Corruption Position Havens Money
  • 20. Why Corruption ? Crony Capitalism ! Banana republics are run on cronyism. People of great power wield great power, but people of lesser power or people who have fallen out of power go to jail without adequate evidence or their bodies are found in the trunks of cars. The danger is that you could degenerate into that kind of atmosphere unless the necessary parts of government play their role in upholding the law and fine, let no one be above the law......So I think it can happen, I mean a Banana Republic kind of an environment could emerge, if we don’t put an end to this kind of thing and under the guise of freedom of speech or the guise of many other numbers of so-called rights of democracy abused, the luxury of a democracy. Ratan Tata When a person like him makes a statement, I think we should take him seriously," - It was gratifying to have the Sharad Pawar head of India’s most “In fact, every policy decision, or reputed business house confirm the existence of change in policy, in most of these crony capitalism in the sectors are being made based on country. True, others have the money which is handed out by believed this for 20 years the consortium of Indian big but it carries more weight business and MNCs. Whole when Ratan Tata says so. institutions and state agencies are As he put it in a television suborned by big capital. India is fast interview with admirable candour: “Yes, I can see reaching the level of Thailand, evidence of it. ” Gee Philippines and Indonesia - all whiz! It exists, after countries which see the free play of all.....Mr. Tata rightly warns MNCs and crony capitalism... us against becoming Prakash Karat a banana republic..... P Sainath If four public figures across the spectrum are agreeing..It must be true.. Corruption is caused by Neo- Neo-liberal policies driven by and encouraging CRONY CAPITALISM !
  • 21. APL, BPL and IPL incentiVes for The rich and ugly, death Sentence for farmers • Corruption scams and illegal capital outflow are not the only form in which the rich and ugly loot • Govt. gifted away to rich and ugly Rs. 5 lakhs crores in last budget, under just three heads - corporate income tax, excise and customs duty by foregoing revenues (=2.5x the 2G scam losses) • Rs. 21 lakhs crores (or half a trillion dollars) is the legal loot of rich in last 5 years (since 2005-06) • It is also equal to the black money siphoned off since 1948. But this legal loot done in public in budget , has equalled it in just 5 years • The same budget cuts Rs. 5568 Crores from Agriculture • While Food subsidy for the poor is being cut in the name of APL and BPL, Super-rich Scandal-infested IPL is given IT rebate “If auctions are not taking place then what is the basis for you to calculate a loss? ... We have a budget which gives subsidy for food, Rs.80,000 crores per annum, some people may say these foodgrains should be sold at marketplace. Will we say then because they are not sold at market prices, because you are giving them a subsidy, it is a loss of Rs. Rs.80,000 crores? Firstly, he equates plunder with the pathetic subsidies tossed at the world's largest hungry population. We rank 67th out of 84 nations in the Global Hunger Index. Secondly, subsidies for the super-rich soar each year. While food subsidies for hundreds of millions were cut by Rs. 450 crore in the last budget.
  • 22. “Mera Baap Ka Sapna..Sab ka Maal Apna” Sapna.. ..Sab Apna” Ambanis dizzying growth • Ambanis practised the worst form of crony capitalism and been (RIL – primary arm of Ambanis Mera baap ka sapna the prime drivers of Neo-liberal policies that are responsible both only, not counting Anil’s empire) Sab ka maal apna for Corruption and Price Rise • UPA and NDA and other regimes have been pliant to Ambanis 1980 Rs 212 Cr (Tot Inc) • Ambanis had a big role in 2G scam, fixing Telecom & Oil ministers 1985 Rs 744 Cr (Tot Inc ) • Ambani stranglehold on Energy policy has direct impact on price 1991 Rs 1,944 Cr (Net Worth ) rise 1995 Rs 8,405 Cr ( Net Worth) 2000 Rs 23,024 Cr ( Turnover) • Turnover has grown > 10 times in 2005 Rs 89,124 Cr (Turnover) this decade 2010 Rs258,651 Cr (Turnover) • Networth increased in 90s 12 times • Total income increased in 80s 9 Profits of Ambanis grown • 16 times in 1980s times • 8 times in 1990s • growth in 80s due to ‘fixing’ of yarn customs, excise, import-export duty • 7 times in in this decade policies • growth in 90s due to PSU Privatization, diversification into oil refineries, telecom • growth in this decade due to growth in Telecom, diversification into Gas, Mera Sapna Retail etc. Sab ka Apna • In every diversification policies fixed to Ambanis advantage • Handing over a national asset -Krishna Basin – for a song to Ambanis • combined with therir entrenched position in oil, virtually makes energy sovereignity to Ambanis R”… It wasn’t long ago that a whole session of Parliament went by in just debating the dispute between the Ambani brothers. A private spat over a public-owned resource called natural gas. Oddly enough, Parliament has never had a public- whole session focussed on agriculture. Not even through the sector’s worst crisis in the past decade. Whether it is gas, spectrum, or mining, luxury private townships or other dubious land deals, the last 20 years have seen the consolidation India....” of corporate power on a scale unknown in independent India....”
  • 23. Price Rise and Government Policies • Price rise is neither market nor natural phenemenon • It is caused or affected by delibarate Govt policies • It can also be prevented or fought by right policies unprecedented price rise in last few years are caused by Neo- liberal policies • Oil Price de-regulation • Allowing Commodity forward trading • Allowing 2.5 times excess stocking in Govt godowns • Dismantling of PDS in the name of targeting • Corporate takeover of retail (including food) • Reducing role of public agencies in commodities wholesale trade • Import-Export policies of essential commodities • Cut in subsidies to agriculture inputs making it unviable Also not fighting following with right policies • Commodity speculation • Hoarding and black-marketing Policies that can fight and prevent price-rise • Ban speculative and forward trading in essential commodities • Use excess foodgrain stock for universal PDS • Remove Ad valorem tax on petroleum products • restructure tax system and reduce drastically Rs. 30 of indirect tax on petroleum • Ban corporate and FDI entry in food retail • Import-export policy that encourages production and reduces domestic prices • Comprehensive policy to make agriculture viable • Restore subsidies for agriculture inputs • Priority lending at 4 % interest • Procurement prices that encourage producers • Other policies recommended by National Commission on Farmers in the wake of widespread Farmers suicide
  • 24. Corruption, Price Rise and us • Unprecedented levels of both Corruption and Price Rise - are caused and encouraged by neo-liberal policies • Neo-liberal policies are being driven and encouraged by Crony Capitalism that is growing rapidly in the last 20 years of so called ‘Economic Reforms’ • Both are symptoms of a system • need to overhaul of the system to eradicate them 2G scam losses = 1.76 lakh crores = 2 years of cost of universal PDS = 5 years of RTE implementation Commonwealth scam = 58,000 Crores = 2 Lakh Primary Health Centers = 12 lakh low-cost houses = 1 lakh PHC + 6 lakh houses Tax Concessions to Rich in 2011 budget = 1.20 lakh crores = I year of REGA like program + 1 year RTE impl = 2 Loan waiver schemes Revenues Foregone per 2011 budget = 5 lakh crores (corp IT+ Customs+ excise) = 2 years of (universal PDS + REGA like program + Loan waiver schemes + RTE program)
  • 25. Instruments to fight Corruption Our constitution provides for several instruments to fight corruption CAG : Comptroller and Auditor General CBI : Central Bureau of Investigation JAC : Joint Accounts Committee JPC : Joint Parliamentary Committee CVC : Chief Vigilance Commissioner Acts like FEMA, Prevention of corruption, Money Laundering Lokayukta Right to Information Act Public Interest Litigation • But most instruments (e.g. CAG, CBI, JAC, JPC) are meant to be used by the Executive to investigate cases • Hence will of Executive is must to use them • Pressure for Executive to use them have to come from MP/MLAs or Media • Citizens have very few instruments to fight corruption (Lokayukta, Right to Information Act, Public Interest Litigation) • Some of them are not available in all states (e.g. Lokayukta, CVC) or centre (Lokpal) •
  • 26. Effectiveness of Anti-Corruption Measures • Effectiveness of most of the measures have been pathetic in major scams as shown by rate of conviction (6 Out of 38 Major cases since 1991) • At best, there have been political ‘sanyas’ • Bureacracy is rarely even accused and never convicted or punished Some of the famous acquittals or no-actions • Bofors, Karnataka Landscam, Karnataka Minescam, HDW, BALCO privatisation, Vote for Notes-1, Vote for Notes-2, Operation Lotus Some of the reasons for ineffectiveness • Lack of will, commitment from Executive • Lack of urgency in taking cognizance of the scam • Political/Bureacratic intervention in the investigation and later phases • In-ordinate delay in investigation, proceeding and prosecution • Witnesses turning hostile due to inducement, pressure or threat • Destruction of evidence by powerful accused often in connivance with business- bureacracy-political nexus • lack of deterrent punishment
  • 27. Political will to fight Corruption “ • Political parties who play a major part in creating pressures on Executive not shown the will to act on corruption and price-rise • Bofors has been a case that despite its political importance, govt.s of alternative political alliances led by Congress & BJP have not shown political will to take it to its logical conclusion • Hawala Diary case where politicians from both alliances (led by Congress & BJP) were involved was buried • Frequent noises at election time about Black Money, Swiss bank deposits similarly has not seen follow-up from both • Radia tapes and wikileaks have exposed the nexus of all political parties (with the exception of left) with Indian & Foreign Business, Foreign Govt,s, Bureacracy • Similarly published assets and its growth after a term (in govt or opposition) of candidates of various political parties (again with exception of left) have shown the corruption of political parties • Enthusiastic support to neo-liberal policies (again with exception of left) have shown their lack of will to fight unprecedented levels of corruption and price-rise
  • 28. be- Is Jan Lokpal Bill be-all of fight against Corruption ? •“ Anna Hazare’s fast for pressing for Lokpal Bill has galvanized the people expressing the frustration against denial, inaction in the face of massive corruption, • Demanding participation of civic society in drafting bills of importance also is a positive development, •But many aspects of Jan Lokpal Bill proposed and the nature of some elements trying to control the movement raises many serious issues Few other weaknesses also are noteworthy • Jan lokpal bill as a be-all of anti-corruption measures • Apolitical and ignoring of all parliamentary institutions • Narrow definition of corruption • Lack of understanding of the root of problem – crony capitalism and neo-liberal policies “.....proposed Lokpal has the makings of a super-monster. By absorbing all existing anti-corruption agencies, the Lokpal will have complete powers of independent investigation and prosecution. It will be an institution with overriding powers — but without any accountability. As such, ........ If the Jan Lokpal is to live up to its jan character, its authoritarian and centralised structure should be dispensed with and it should be turned into an instrument of people's empowerment. ..” Prof K N Panikker
  • 29. We pledge to have Price- ZERO tolerance for Corruption and Price-Rise We PLEDGE TO 1. Have ZERO tolerance for corruption at high places and price- rise 2. If we see, hear corrupt practices, we will speak out 3. Support and protect whistleblowers against corruption in all organizations including corporates 4. Use RTI to expose corruption in all organizations 5. Refuse to sell vote for notes or other allurements 6. Refuse to vote to a candidate whose assets significantly increased after a term 7. Utilize all avenues to participate in policy-making and oversseing of public programs WE DEMAND 1. A comprehensive effective Lokpal Bill by this August 15 drafted with public consultation 2. Teeth to Karnataka Lokayukta including cabinet ministers in the jurisdiction and suo moto powers 3. Resignations of all accused in the recent scams - 2G, Commonwealth, Karnataka Mine and landscams 4. time-bound action and speedy conviction of accused in recent scams 5. RTI to be extended to private organisations including corporates 6. Protection of Whistleblowers Bill 7. Ban on Forward trading of essential commodities If we see, hear 8. Reduction of indirect taxes on Petroleum products anything about 9. Strict action on Black-marketeers and hoarders of essentials 10. Universalisation of PDS 11. Implementation of Swaminathan Commission CORRUPTION, recommendations (2005) to make Agriculture viable we will speak out
  • 30. Samudaaya grateful ly acknowldeges Quotes, Resources Cartoonist Cartoon Publisher Justice V R Krishna Iyer Prof. K N Panicker Mahamud Sudha, Prajavani, Deccan Herald P Sainath Satish Acharya Sunday Midday Dr. Manmohan Singh Surendra The Hindu Ratan Tata Sharad Pawar Keshav Prakash Karat R Prasad Mail Today Unny Indian Express India Today R K Laxman Times of India Outlook Frontline Ravishankar India Today Peoples Democracy Manjul DNA IDEAS Raghupathy Sringeri Transparency International CAG Amul Wikileaks And many other unknown unnamed unsung ones, including many Whistleblowers , who unearthed the scams And not to forget GOOGLE who helped us discover many of them Produced by Karnataka Raajya Samudaya Samanvaya Samiti , No.162 6th Main, 4th Phase 7th Block BSK 3rd Stage Bangalore 560085. Ph.No.s 9449528643/9480148963/ 9844109706 http://samudaayacampaign.wordpress.com/