The document summarizes several corruption scandals in India involving billions of dollars lost to graft and cronyism. It notes that corruption has increased significantly since economic reforms in the 1990s, with scam amounts growing from tens of crores to lakhs of crores. Major scams discussed include the 2G spectrum scandal estimated at Rs. 1.76 lakh crore, the Commonwealth Games scam at Rs. 58,000 crore, and mining and land scams in Karnataka totaling over Rs. 40,000 crore. The document argues that corruption has reached the highest levels of government and is a byproduct of the country's "casino capitalism".
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/