Swaraj in Bharath

7/28/2019 Swaraj in Bharath

1/27

The campaign against corruptionIn India


2/27

How effective are our laws to combatcorruption?

THE SANTHANAM Committee Report 1964 defines

corruption as a complex problem having roots and

ramifications in society as a whole. In its widest

connotation, corruption includes improper or selfish

exercise of power and influence attached to a public

office.

During the last one decade, several cases ofcorruption have come to public notice due to the

vigilant press, efforts of public spirited persons and

a proactive judiciary.


3/27


4/27

The Bofors gun, Airbus deal, ABB loco deal, Jain

hawala racket, sugar scam, telecom scam, securities

scam, urea scam and fodder scam in Bihar are a few

instances. The scams which surfaced are only the tip

of the iceberg.

A majority of the scams relate to ``public expenditure''

by the Central and State Governments. The basiccriteria in detecting corruption in public expenditure is

the prevalent market value of the item of purchase,

though such a yardstick presents certain difficulties in

detecting corruption in defence purchases.


5/27

The cases of corruption in the collection of

``public revenues'' and arrears thereof are not

detected on a significant scale. It is not

anybody's case that there is no corruption in the

realisation of ``public revenues,'' the direct and

indirect taxes.


6/27

Defaulting on bank loans is a penal offence

without provision of attachment of properties.

Yet another corruption is and money laundering

in the banking sector. The securities scam

alone involved a loss of Rs. 1,28,534 crores

according to the JPC which probed the matter.


7/27


8/27

Former Jharkhand Chief Minister Madhu Koda has

been booked by the Enforcement Directorate under

the Prevention of Money Laundering Act for allegedlydiverting state funds and making huge investments

abroad.

Senior officials of the ED said Koda, who ironically is

the first Chief Minister to be booked under PMLA, isalleged to have made huge investments abroad

besides those in India.

ED books former Jharkhand CMMadhu Koda under PMLA


9/27


10/27


11/27


12/27

Harshad Mehta & Ketan ParekhStock Market Scam

Although not corruption scams, these have affected

many people. There is no way that the investor

community could forget the unfortunate Rs. 4000

crore Harshad Mehta scam and over Rs. 1000 crore

Ketan Parekh scam which eroded the shareholders

wealth in form of big market jolt.


13/27

Income tax arrears in 1993 stood at Rs. 6,000 crores.

This is in respect of assessed tax. Under-assessed tax

accounts for some thousands of crores of tax losses. So

is the case in relation to indirect taxes - central excise

duties. Another angle of revenue loss relates to non-

recovery of bank loans from the industrialists

accounting for nearly Rs. 50,000 crores.


14/27

The Hawala case to the tune of $18 million bribery

scandal, which came in the open in 1996, involved

payments allegedly received by countrys leading

politicians through hawala brokers. From the list ofthose accused also included Lal Krishna Advani who

was then the Leader of Opposition.

It gave a feeling of open loot all around the public,

involving all the major political players being accused of

having accepted bribes and also alleged connections

about payments being channelled to Hizbul Mujahideen

militants in Kashmir


15/27

2G Spectrum Scam

This scam involved the process of allocating

unified access service licenses. At the heart of thisRs.1.76-lakh crore worth of scam is the former

Telecom minister A Raja who according to the

CAG, has evaded norms at every level as he carried

out the dubious 2G license awards in 2008 at a

throw-away price which were pegged at 2001

prices.

The Top Scams in India


16/27

Commonwealth Games Scam: It is estimated that out of

Rs. 70000 crore spent on the Games, only half the said

amount was spent on Indian sportspersons.

The Central Vigilance Commission, involved in probing

the alleged corruption in various Commonwealth Games-

related projects, has found discrepancies in tenders

like payment to non-existent parties, willful delays inexecution of contracts, over-inflated price and bungling in

purchase of equipment through tendering and

misappropriation of funds



17/27

Abdul Karim Telgi forged in printing duplicate stamp

papers and sold them to banks and other institutions. The

fake stamp and stamp paper case penetrated 12 states

and was estimated at a whooping Rs. 20000 crore plus.

The Telgi clearly had a lot of support from government

departments that were responsible for the production and

sale of high security stamps.



18/27

Satyam is the biggest fraud in the corporate history to the

tune of Rs. 14000 crore. The companys disgraced

former chairman Ramalinga Raju for a decade fudged

the books of accounts for several years and inflating

revenues and profit figures of Satyam. Finally, the

company was taken over by the Tech Mahindra which has

done wonderfully well to revive the brand Satyam.



19/27


If you havent heard of Bihars fodder scam of 1996, you

might still be able to recognize it by the name of Chara

Ghotala , as it is popularly known. In this corruption

scandal worth Rs.900 crore, an unholy nexus was traced

involved in fabrication of vast herds of fictitious

livestock for which fodder, medicine and animal

husbandry equipment was supposedly procured


20/27

IPL Scam

The recent scam in IPL and embezzlement with

respect to bidding for various franchisees. The

scandal already claimed the portfolios of two big-

wigs in the form of Shashi Tharoor and former

IPL chief Lalit Modi.


21/27

India has lost nearly a half-trillion dollars in illegal

financial flows out of the country, says a new

study by Global Financial Integrity. So massiveare these illegal outflows, says the study, that the

total capital flight represents approximately 16.6

per cent of India's GDP as of year-end 2008.


22/27

Its estimate falls far short of the $1.4 trillion

figure cited in the India media prior to the 2009general elections. But, says the report, the

figure still represents a staggering loss of

capital. Illegal flight of capital, it says,

worsens income distribution, reduces the

effectiveness of external aid, and hampers

economic development.


23/27

The studyThe GFI study is titled The Drivers and Dynamics of IllicitFinancial Flows from India: 1948-2008. Authored by Dr.

Kar, formerly a senior economist at the International

Monetary Fund (IMF) and now Lead Economist at the GFI,

it defines illicit flows' as comprised of funds that are

illegally earned, transferred, or utilised if laws werebroken in the origin, movement, or use of the funds then

they are illicit. Such fund transfers are not recorded in the

country of origin for they typically violate that nation's laws

and banking regulations.


24/27


25/27


26/27

Basis In Self-Sacrifice

Swaraj can be maintained only where there is a

majority of loyal and patriotic people to whom the

good of the nation is paramount above all other

considerations what-ever including their personal

profit. M K G (YI, 28-7-1921, p.238)


27/27

If Swaraj was not meant to civilize us,

and to purify and stabilize our civilization,

it would be nothing worth. The very

essence of our civilization is that we give

a paramount place to morality in all our

affairs, public or private. (YI, 23-1-1930, p. 26)

Documents

Swaraj in Bharath