Democracy and Corruption

 

Democracy and Corruption

Democracy breeds corruption. Corruption is bred by the Society – We the People. For “We the People” elect leaders and political parties to rule them by demanding/accepting money, liquor and freebies in exchange for votes.  In turn, leaders and parties elected by fraudulent means breed corruption to safeguard future electoral prospects.

Remember always that politics in democracy is the game played in pursuit of power, wealth and status.  Self - “I-Me-Myself and my progeny” - is the pursuit of “Dynasts, neo-Maharajahs, feudal lords, capitalists, criminals and Dons.   “Winnability” is the sole criteria for selection of candidates by political parties without exception. What can one expect out of such a vicious drama or game?

No wonder, the damning perception of corruption is real and dangerous. It undermines people’s faith in government institutions. In turn, it fuels the crisis of democracy. Of course, everyone is well aware that corruption knows no geographic boundaries, and its impact is devastating, particularly for developing countries. It is the most sinister and devastating threat to national security interests.

Most important to note, the anti corruption movement faces a backlash by entrenched elites sitting in opposition keen to protect their privileges—and avoid accountability. At the same time, anti-corruption efforts can also be weaponized by opportunistic leaders to target their political rivals. Furthermore, the rise of populist governments in particular poses challenges. By their nature, populists tend to define themselves against a corrupt elite, but once in office, they often weaken institutions and divert attention from their own use of the levers of power to enrich themselves.

The Constitution states that “all are equal before the law”.  In reality, the powerful politicians and the rich know how to circumvent laws. Even if the courts convict the powerful and the rich, they enjoy ‘five star comforts even in jails. It is a grim reality today.

Who is responsible for such an absurd situation wherein political criminals and crooks escape conviction? Judiciary blames the Investigating and Prosecuting Agencies. In turn, the Investigating and Prosecuting Agencies blame the Executive for not following sanctions and also providing evidence. Ironically, “law takes its own course” is the common euphemism used for the cover ups

In reality, the Congress Party, having ruled the country for well over 50 years, is the fountain head of corruption. Of course, “Har ek political party mein Chor hai” is a grim reality.   If you want to look for one, you may find hundreds and thousands around you. Such is the harsh reality.

In retrospect, politics, economics and corruption are ‘hand in glove’. The prevailing polarized, radicalized political chaos today, in fact, is in large part the classic aftermath of major economic turmoil on account of corruption. The effects of the crisis of corruption over the past 75-years are the root cause for India not realizing its full potential. Corruption also has international dimensions and cannot be overlooked.

Corruption, particularly the flight of the capital, destroys a lot of wealth very fast. When wealth is destroyed, people get angry. In retrospect, a virulent populist backlash may rise like a volcano.

In sum, “Zero tolerance against corruption” has proved to be an illusion. Nobody thinks the system is fully safe now. And nobody thinks we have adequate plans and resources to handle the next series of scams in the making.

Such has been the course or curse on which political leaders have run the course of the society over the past 75 years; it is difficult to find honest people around you. List of key scams post 1947 are covered in the end to provide the grim realities and the dangerous course of the nation traversing.

As per Association of Democratic Reforms (ADR), political parties in India collected more than Rs 2,172 crore from "unknown sources" in the financial year 2021-22, accounting for 66.04 percent of their total income. And, there are 475 Crorepathi’s out of 539 MPs elected in 2019.

As per India Today report, out of the 539 winners analysed in Lok Sabha 2019, 233 MPs have declared criminal cases against themselves. This is an increase of 44 per cent in the number of MPs with declared criminal cases since 2009. Congress MP Dean Kuriakose from Idukki constituency in Kerala has declared 204 criminal cases against himself. These include cases related to committing culpable homicide, house trespass, robbery, criminal intimidation, etc.

As per submission made to the Supreme Court, a whopping 2,556 MLAs and MPs from 22 states are accused – more than 60%.

In Transparency International’s latest Corruption Perceptions Index, most governments are seen as corrupt by their own citizens. As per the Transparency International 2021, India's ranking is 85 in the list of 180 countries with 40 out of 100 score. The “Panama Papers” ranks India 19th out of 180 countries in terms of the number of names in the offshore data leak -total of 714 Indians named

Viewed in the above highlights, media hyper activism or sensationalism of corruption is the worst fraud on the gullible people of India. Ironic but true that none of the media houses highlight that the “Bribe Giver” as much as the “Bribe Taker” are punishable under the Laws of the Land.

How many “Bribe Givers” who are punishable under the Prevention of Money Laundering Act, have been convicted? Has the media named and shamed them just as the “bribe takers”?

For example, the Karnataka Contractors Association has alleged in the past that their members pay almost 40% as commission for getting projects. In the latest expose by the Karnataka contractor Association President, that 10% commission is the minimum to get the bills passed, which is quite common knowledge since 1980s. But, how many “Bribe Givers” have exposed “Bribe Takers”?

Ipso facto, after I K Gujral, former Prime Minister's Days in 1980s, nearly every Prime Minister has invoked “Zero Tolerance against Corruption” as the most urgent need to consolidate and advance national interests. In reality, how many of them have acted against the corrupt political leaders, parties and officials collaborating with them?

Nowadays, the CBI, ED and the IT agencies are blamed for conducting raids against corrupt leaders. And, the most invoked term is “political vendetta” focused on opposition political parties.

Of course, the ruling party leaders get away with ‘blue murder of corruption”. For example, Karnataka LokAyukta officials seized Rs 8.12 crore unaccounted cash from the office and residence of BJP MLA K Madal Virupakshappa’s son Prashanth Madal in Bengaluru. While Prashanth was arrested and remanded in judicial custody, the BJP lawmaker, who was the prime accused, avoided arrest and got interim anticipatory bail by the High court. And, the case is pending in the Supreme Court. 

Surely, Madal Virupakshappa must be arrested by various investigative agencies and kept in judicial custody like others currently in judicial custody from the opposition parties.

 At stake is Modi’s credibility! Can Modi crack the whip on corruption on all alike with disregard to party affiliations in such a complex environment? Invoking catchy-phrases or slogans is easy. But, effectively enforcing them in a time bound manner is another thing, which is most challenging.

Modi must direct prompt action against BJP MLA Madal Virupakshappa and his son Prashanth Madal. Unless Modi directs the concerned authorities to take time-bound actions and give wide publicity by giving daily ATR (Action Taken Report), the Aam Admi would not be impressed by Modi’s strong leadership capabilities. Naturally, there is bound to be backlash at polling outcomes.

Even in the case of Adani Scam, the CJI and the Supreme Court must deliver its verdict earliest, sending clear signals that even powerful persons are “equal in the eyes of law” thereby restoring confidence of people in the system. And, the Supreme Court must direct the CBI, the ED and the IT departments to fast track the investigation processes and file the charge sheets against all the “TIGERS” of corruption in all political parties masquerading as leaders.

 

 

 

 

 

 

 

 

 

Key scams/scandals Post 1947

 

1947 - INA treasure chest disappearance; 1948 - Jeep scandal case 155 jeeps delivered out of 2,000 jeeps ordered – Rs. 80 lakhs; 1949 - Gems Graft case -  Industry minister Rao Shiv Bahadur Singh, father of Arjun Singh, was jailed for three years for taking a bribe of Rs 25,000 from gemstone trader Sachendubhai Baron for renewing his diamond mining lease.

 

1950 - 1951: Mudgal scandal; Cycle Scam; 1956 BHU funds misappropriation (₹5 million); 1957: Haridas Mundhra Insurance company scandal (₹12 million); 1959: Ramakrishna Dalmia, chairman, Bharat Insurance Company, was arrested for misappropriating around Rs 2.2 crore from the company and sent to jail for two years.

 

1960s - Dharma Teja scam; 1964: Pratap Singh Kairon resigned for favoring his family; 1965: Biju Patnaik resigned over corruption charges favouring his own Kalinga Tubes company. 1970s - 1971: Nagarwala Scandal - Rs.60 lakhs; 1974: Maruti scandal; 1976: Kuo Oil deal – US $ 200 Mn. Scam linked to Indira Gandhi and Sanjay Gandhi.

 

1980s - 1980: THAL Vaishet project scam; 1981: 1) Antulay Trust scandal; 2) The HDW Submarine Purchase Kickback – US$ 100 million; 1982: 1) Cement Scam involving A R Antulay; 2)Fallout of Enron scandal; 1983: Lakhubhai Pathak Cheating Scandal; 1985 Fodder scam (₹9.5 billion); 1986: Bofors – US $ 15 Bn contract. Kickbacks involving Rs.64 crores; 1987 HDW Submarine scandal; 1989: St. Kitts Forgery.

 

1990s - 1990: 1) Air Bus A 320 deal;2) Telephone equipment’s & STC purchases; 1991: Jain Hawala case – Rs. 64 crores; 1992: 1) Rs. 4,000 crores Harshad Mehta securities scam; 2) Palmolein Oil Import Scam; Railway Engines; 3) House allotments; 4) Gold Star/ABFL; 1993: 1) $18 million Hawala bribery scandal; Babanrao Gholap disproportionate-assets case; 1995: 1) JM Bribery; 2) The Fertiliser Import Scam – US$ 330 Million; 3) Sukh Ram Telecom Equipment Scandal; 4) Purulia arms drop; 5) Telgi scam; 1996: 1) Bihar fodder scam - US$ 250 Million; 2) Oil and gas distributorship; 3) Indian Bank loans totaling Rs 1,500 crore to companies without obtaining adequate-collateral-security; 4) Lakhubhai Pathak Paper Pulp Contract Bribery; 1996 disproportionate assets case against Jayalalithaa; 1997: 1) The Telecom Scam – US$ 400 Million; 2) SNC Lavalin scandal; C. R. Bhansali scam (₹11 billion); Fertiliser import scam (₹1.33 billion); Meghalaya forest scam (₹3 billion); 1998 Anubhav Plantations scam; 1999: 1) Kargil Coffingate; 2) UTI Mutual Fund scam – Rs. 4800 crores.

 

2000 - 2000: 1) Cricket Match fixing; 2) Telgi Stamp Paper Scam – over US $40 million; 2001: 1) UTI Scam – US$ 1.1 Billion; 2) Rs.1,000 crores Ketan Parekh securities; 2) Barak Missile Scandal; 3) Calcutta Stock Exchange; 4) Tehelka Sting; 2002: Provident Fund scam; Home Trade Scam; 2003: 1) Rs.20,000 crore Telgi Stamp Paper Scam; 2) Taj corridor scandal; Housing and Urban Development Corporation scam; Andhra Pradesh Social Welfare scholarship scam; Uttar Pradesh food grain scam; Haryana teacher-recruitment scam; 2004: Gegong Apang PDS Scam; Taj Co-operative Group Housing Scheme scam (₹45 billion); IPO scam; Bihar flood-relief scam (₹170 million); 2005: 1) Oil-for-food programme (Natwar Singh); 2) Cash for Query; 3) MPLAD scam. 4) Scorpene Submarine Scam – Only US$ 4.7 Billion; 2006: 1) Kerala Ice Cream Parlor Scandal; 2) Scorpene Deal Scam; 3) Navy War Room spy scandal; Punjab city-centre project scam (₹15 billion); UP ayurveda scam (₹260 million); 2007: Human Trafficking Forged Passport Scam; 2008: 1) Cash For Votes Scandal; 2) 2008 Mumbai Attacks; Hasan Ali Khan money-laundering case; State Bank of Saurashtra scam (₹950 million); Paazee Forex scam (₹8 billion); Cash at judge's door scam; Power-theft scandal; 2009: 1) Madhu Koda mining scam – US$ 900 Million; 2) Rs.14,000 crore Satyam scandal; Goa special economic zone scam; JVG scam; Rice export scam (₹25 billion); Orissa paddy scam; Sukhna land scam (Darjeeling); Vasundhara Raje Deendayal Upadhyaya Trust land scam; Austral Coke scam (₹10 billion); Gujarat VDSGCU sugarcane scam (₹187 million).

 

2010: 1) Rs.1,76,000 lakhs crores 2G spectrum and Radia Tapes Controversy; 2) Adarsh Housing Society; 3) Rs. 70,000 crores Commonwealth Games scam; 4) Housing loans; 5) Belekeri port; 6) Lavasa Scandal;

7) UP Food Grain Scam; 8) AP Industrial Infrastructure Corporation Controversy; 9) ISRO-Devas S band Scam; 10) Indian Premier League Cricket Scandals; Andhra Pradesh Emmar scam (₹25 billion); Karnataka land scam; Karnataka housing-board scam (₹350 million); Uttarakhand land scam; Medical Council of India scandal; Chandigarh booth scam; Odisha illegal-mining scam; Gegong Apang PDS scam (₹100 bn).

 

2011 - Hasan Ali Khan scam US$ 11.11 Billion in taxes; Indian Black Money in Swiss Banks;  Reliance Gas scam; Belekeri port scam ₹35,000 crores; Tatra scam (₹7.5 billion; National Technical Research Organisation scam (₹8 billion); Goa mining scam; BBMP scam; HP housing scam; Pune housing scam; Pune land scam; Orissa pulse scam; Kerala investment scam; Mumbai sales tax fraud; Maharashtra education scam; Maharashtra public distribution system scam; UP Teacher Eligibility Test scam; UP MGNREGA scam; Orissa MGNREGA scam; Indian Air Force land scam; Bihar solar lamp scam; B. L. Kashyap, Employees' Provident Fund Organization scam; Assam education scam; Pune ULC scam.

 

2012 - Aadhaar scam; Andhra Pradesh liquor scam; Bengaluru mayor's fund scam; Bharat Earth Movers housing-society scam; Delhi surgical-glove procurement scam; DIAL Scam (₹1,669.72 billion); Flying Club fraud; Foreign exchange derivatives scam (₹320 billion); Girivan land scam; Granite scam in Tamil Nadu (about ₹160 billion (US$2.0 billion); Haryana forest scam; Himachal Pradesh pulse scam; Indian coal allocation scam; Jalgaon housing scam; J and K Cricket Association scam (about ₹500 million); J and K PHE scam; J and K recruitment scam; J and K exam scandal; Karnataka Wakf Board Land Scam; Maharashtra stamp duty scam (₹6.4 billion); Maharashtra land scam; Maharashtra Housing and Area Development Authority repair scam (₹1 billion); Maharashtra Irrigation Scam (about ₹720 billion); Ministry of External Affairs gift scam; MSTC gold-export scam (₹4.64 billion); Nayagaon, Punjab land scam; NHAI allegations scam; NHPC cement scam; Patiala land scam (₹2.5 billion); Punjab paddy scam (₹180 million); Ranchi real-estate scam; Service Tax and Central Excise fraud (₹19,000 crore); Tax refund scam(₹30 million);Taxpayer identification number scam; Toilet scam; UP NRHM scam; Ultra Mega Power Projects scam – The central government lost ₹290.33 billion (US$3.6 billion) due to undue benefits to Reliance Power; UP elephant-memorial scam (₹1,400 crore); UP horticulture scam (₹700 million); UP Labour and Construction Co-operative Federation scam; UP palm tree plantation scam (₹550 million); UP seed scam (₹500 million); UP stamp duty scam (₹1,200 crore);

 

2013 - Virbhadra Singh bribery controversy (₹2.4 crore); MP pre-medical test scam; MP wheat-procurement scam (₹4 crore); Arvind and Tinoo Joshi disproportionate-assets case (MP); Delhi-Gurgaon Toll Plaza scam; Employees' Provident Fund Organisation scam; Haryana seed scam (₹5 crore); Directorate General of Civil Aviation "free ticket" scam; Leave Travel Concession scam; Telangana rape victim names & Mother reaction 2019; NSEL case (₹5,500 crore); Railway iron ore freight scam (₹17,000 crore); UP illegal sand mining; Vodafone tax controversy[308] (₹11,000 crore); Railway bribery scam[311] - The CBI arrested railway minister Pawan Kumar Bansal's nephew for allegedly accepting a ₹9 million bribe for a Railway Board member); 2013 Indian Premier League spot-fixing and betting case; 2013 Kerala solar panel scam; Odisha land-allotment scam; 2013 Indian helicopter bribery scandal; MP Scholarship scam; Saradha Group financial scandal: Collapse of a Ponzi scheme run by Saradha Group, a consortium of over 200 private companies believed to be running so-called chit funds); MBBS seats scam - Rasheed Masood was sentenced to four years imprisonment and expelled from the Rajya Sabha;

2014 - Mumbai International Airport scam; Aavin scam - Tamil Nadu State Milk Union; SmartCity, Kochi scam; Cash for MLC seat scam; Pratapsingh Rane bribery case; Illegal mining in the Aravalli Range (Haryana and Rajasthan); Siliguri Jalpaiguri Development Authority scam; Reliance Jio spectrum-auction-rigging scam; Odisha industrial-land mortgage scam (₹52,000 crore); National Herald land scam; Vyapam scam; MP minister Gauri Shankar Chaturbhuj Bisen disproportionate assets case (₹2,000 crore); Hari Kumar Jha disproportionate assets case (₹15 crore); Nationalist Congress Party (NCP) unaccounted-cash case (₹34 crore); Haryana Urban Development Authority discretionary quota plot scam; Jyotiraditya Madhavrao Scindia land-grab case; R. C. Kuriel disproportionate assets case (Madhya Pradesh): Mayank Jain disproportionate assets case; Rajasthan Housing Board (RHB) arbitrary lease allotment of property; HPCA illegal land-allotments scandal; Indian Railways-RailTel Corporation of India mobile scam; Hindustan Aeronautics Limited and Rolls-Royce defence scam (₹10,000 crore); Air India Family Fare Scheme scam; Bokaro Steel Plant recruitment scam; Gujarat land-allotments scandal; Kribhco and Yara International fertilizer controversy; Delhi Jal Board scam (₹10,000 crore); Indian Railways "emergency quota" ticket scam; Cremation shed scam; Maharashtra money laundering etc.

 

2015 - The Supreme Court found that the Ministry of Housing and Urban Poverty Alleviation's National Urban Livelihood Mission had built only 208 houses for nine lakh (900,000) homeless people, although the central government had allocated ₹1,078 crore to the mission;  Amethi Rajiv Gandhi Charitable Trust land-grab case; Delhi CNG scam (₹100 crore); Delhi power scam; Gujarat fisheries scam (₹400 crore); GIDC plot-allotment bribery case; Mizoram office of profit scam; Maharashtra Sathe Development Corporation scam; Uttarakhand liquor-license scandal; Nagpur land-grab case; Integrated Child Development Services "Chikki" controversy; Bangalore land de-notification scam B. S. Yeddyurappa; Virbhadra Singh disproportionate-assets case; NTC land scam; Lalit Modi corruption case; 2015 Cash for Vote Scam; Corporate espionage - Officials of Reliance Industries, Reliance Anil Dhirubhai Ambani Group, Essar Group, Cairn India and Jubilant Energy were accused of stealing documents from the Petroleum Ministry; Uttarakhand flood-relief scam; NSE co-location scam; Louis Berger Group bribery.

 

 2016 - Narada sting operation; Freedom 251 scam - A ponzi scheme; Fugitive Economic Offender, Vijay Mallya escaped from India on March 2, 2016; PACL scam. 2017 - Noida Ponzi scheme; Maharashtra scholarship scam; Winsome Diamonds and Jewellery and Forever Precious Jewellery and Diamonds scam; PIL filed against Adani Group, Reliance Group, Essar Group and other mining and energy companies for an investigation of alleged ₹290 billion overcharges for Indonesian coal and imported power equipment from 2011 to 2015;

 

2018 - Rotomac bank fraud; Punjab National Bank Scam linked to Nirav Modi. Three jewellers (Gitanjali Group and its subsidiaries, Gili and Nakshatra) are also under investigation. 2019 - Karvy Scam; PMC Bank scam; DHFL scam and UPPCL employee provident fund (EPF) scandal; INX Media case against former Union Minister P. Chidambaram; IMA ponzi scheme; D. K. Shivakumar money-laundering case; Cox & Kings scam; IL&FS scam and fraud; Misuse of Clients' Funds by Amrapali Aadya Trading and Investments Private Limited and 8 others.

 

2020 - Kerala gold smuggling scandal; Fake TRP Scam - In October 2020, Mumbai Police filed a charge sheet against India Today, News Nation, Republic TV, and multiple Marathi channels on grounds of manipulation of TRP; Roshni Land Scam; Guru Raghavendra Bank scam; Sandalwood drug scandal; PM Kisan Nidhi scam in Tamil Nadu, where Rs. 110 crore was siphoned off to ineligible beneficiaries. 2021 - Vazegate Scandal; 2021 Recruitment scam; Pegasus Snooping Scandal; 2022 - Charity Scandal: On 10th February 2022, the ED attached assets of worth 1.77 crore from journalist Rana Ayyub under the money laundering act etc. 

Article by GB Reddy Sir