Steal of Few Hundred and You

8/14/2019 Steal of Few Hundred and You

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support for the Bill, it would further enhance their stature apart from doing the economy a

good turn.

Indian 2G Spectrum Scam

The 2G spectrum scam was a scam involving politicians and government officials in India

illegally undercharging mobile telephony companies for frequency allocation licenses, which

they would then use to create 2Gspectrum subscriptions for cell phones. The shortfall between

the money collected and the money that the law mandated to be collected is estimated to be

1766.45 billion (US$27 billion), as valued by the Comptroller and Auditor General of India

based on3G and BWA spectrum auctionprices in 2010.[1]However, the exact loss is disputed.

In a chargesheet filed on 2 April 2011 by the investigating agency, Central Bureau of

Investigation (CBI),the loss was pegged at 309845.5 million (US$4.7 billion)[2]whereas on 19

August 2011 in a reply to CBI, Telecom Regulatory Authority of India (TRAI) said that the

government gained over 30 billion (US$460 million) by giving 2G spectrum.[2]SimilarlyKapil

Sibal, theMinister of Communications & IT,claimed in 2011, during a press conference, that

"zero loss" was caused by distributing 2G licenses onfirst-come-first-servedbasis.[3]It has to be

pointed out, however, that "zero loss" can simply mean that frequencies were not sold for less

than cost. The phrase indicates nothing about whether the sale was a scam.

All the speculations of profit, loss and no-loss were put to rest on 2 February 2012 when the

Supreme Court of India delivered judgement on a public interest litigation (PIL) which was

directly related to the 2G spectrum scam. The Supreme Court declared allotment of spectrum as

"unconstitutional and arbitrary" and quashed all the 122 licenses issued in 2008 during tenure of

A. Raja (thenminister for communications & IT from 2007 to 2009)the main official accused in

the 2G scam case.[4]
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Commonwealth Games Scam

A number of concerns and controversiessurfaced before the2010 Commonwealth Games in

New Delhi,India,which received widespread media coverage both inIndia (the host nation) and

internationally.

The Commonwealth Games was severely criticised by several prominent Indian politicians and

social activists because billions of dollars have been spent on the sporting event despite the fact

that India has one of the world's largest concentration of poor people.[1][2]Additionally, several

other problems related to the 2010 Commonwealth Games have been highlighted by Indian

investigative agencies and media outlets; these include serious corruption by officials of the

Games' Organising Committee, delays in the construction of main Games' venues, infrastructuralcompromise, possibility of a terrorist attack, and exceptionally poor ticket sales before the event.

Socio-economic impact

Financial costs

Azim Premji,founder ofWipro Technologies,remarked that India faced several socio-economic

challenges and "to instead spend on a grand sporting spectacle sounds like we [India] have got

our priorities wrong."[3]

Social and environmental impact

Nearly 400,000 people from three large slum clusters in Delhi have been relocated since 2004.

Gautam Bhan, an Indian urban planner with the University of California-Berkeley, said that the

2010 Commonwealth Games have resulted in "an unprecedented increase in the degree,

frequency and scale of indiscriminate evictions without proper resettlement. We havent seen

[these] levels of evictions in the last five years since the Emergency."[5]
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In response to a Right to Information (RTI) application filed for study and statements by civil

society groups, a report by the Housing and Land Rights Network (HLRN) - an arm of the

Habitat International Coalition - detailed the social and environmental consequences of the

event.[6] It stated that no tolerance zones for beggars are enforced in Delhi, and the city has

arbitrarily arrested homeless citizens under the "Bombay Prevention of Begging Act 1959".

women workers living and working in the labour camp style work sites.[12]Furthermore, workers

on the site of the main Commonwealth stadium have reportedly been issued with hard hats, yet

most work in open-toed sandals and live in cramped tin tenements in which illnesses are rife .[13]

The High Court of Delhi is presently hearing a public interest petition relating to employers not

paying employees for overtime and it has appointed a four-member committee to submit a report

on the alleged violations of workers rights.[12][14]

During the construction of the Games Village, there was controversy over financial

mismanagement,[15]profiteering by the Delhi Development Authority and private real estate

companies,[16]and inhumane working conditions.

Telgi and the Fake Stamp Paper Scam

The tentacles of the fake stamp and stamp paper scam, better known as the Telgi scam, has

penetrated 12 states and is estimated at a whopping Rs 20,000 crore plus. Between 1992 and

2002, 12 cases were registered against Telgi relating to counterfeit stamps in Maharashtra alone

and 15 cases in other parts of the country, but the lack of serious action suggests that the

scamster had mastered the technique of corrupting the system. The Telgi scam is by no means a

case of police corruption and political connivance helping an ingenious crook to set up a fast-

growing dubious business. Telgi clearly had a lot of support from other departments and

institutions of government that are responsible for the production and sale of high security

stamps. But questions about their involvement are just beginning to be asked. Even more

shocking is the fact that the Special Investigation Teams enquiry report, better known as the

Jaiswal report, had already asked these questions in November 2002, but no action has been

initiated on the wider issues raised in the report.

The scam was so big that large myths accreted around this criminal. Anil Dharker propagated

one in his piece in theHindu in 2003:
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The father died when Abdul Karim, the second of three sons, was still a child. He was

determined to study and supported his own education at a local English medium missionary

school by selling vegetables and fruit on trains.

This registers a distinct hit on my bullshit meter. Telgi was born in 1956. If he put himself

through school selling bananas, he would have done it in the early 60s. Comparing the profits

from selling bananas to the monthly charges in an English medium school in the 60s will tell

you how improbable this story is.

The scam fell below the media radar soon after this article was written, emerging from

comfortable obscurity when the first convictions came in 2006. At that time Frontline rand a long

article which is still worth reading:

ABDUL KARIM TELGI, mastermind of perhaps the biggest ever scam the country witnessed in

recent history, has finally been convicted. The judgment was really no surprise. Obviously, a

man who defrauded the exchequer of thousands of crores of rupees by selling fake stamp paper

could not possibly be allowed to walk free. However, the severity of the punishment seems

hardly the issue in the Telgi case.

On January 17, 2006, almost 11 years after the first case against Telgi was registered, special

Central Bureau of Investigation (CBI) Judge U.S. Salvi pronounced the scamster guilty on seven

counts: criminal conspiracy, counterfeiting government stamps and cheating, among others.

Telgis modus operandi involved washing cancelled stamp papers with chemicals, which would

make them look as good as new. He would sell them through his network of front men.

How Satyam Scam Unfolded

They are also looking into their e-mails and phone records over the last one month.


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Andhra chief minister Y S R Reddy reiterated his government did not flout any rule in awarding

the Hyderabad metro rail project to Maytas.

But how deep and how wide is the rot inside India's fourth largest software company?

Sources tell CNN-IBN the company is facing serious money crunch, and needs Rs 1,110 crore to

tide over the crisis and Rs 500 crore to pay the January salary to employees.

Meanwhile a search is also on for a new CEO for the embattled IT firm. Network-18 learns that

the board is looking at a 10-day time period to pick someone to head the company. Over 40

applications have come in so far.

There is now also a question mark on the number of employees Satyam has. It is reported that

Satyam has 53,000 employees.

How they did it

Investigators are now reportedly coming across evidence of insider trading by the promoters

even before the scandal broke.

The big takeaway from the Registrar of Companies report is that the top management of Satyam

- the directors and senior officials - sold shares ahead of the Big Bang revelation by Raju.

The reports say Satyam books have been overstated by Rs 5,000 to Rs 6,000 crore, leading to an

inflated stock price that helped the top management make money.

Who sold what?

Raju has claimed that no one else in the company was privy to the fudging of accounts. But

exclusive information with CNN-IBN suggests insider trading.

BSE figures show a number of senior people in the company, including Raju and CFO

Vadlamani were reportedly selling Satyam's shares over the last 22 quarters.

In June 2001, Raju had nearly 23 per cent shares. By December that year, his share was down to

22.4 per cent.

In September 2002, it fell to 21.6 per cent which fell a year later to just over 19 per cent.

In 2004, Raju's holding was 16 per cent which fell to 14 per cent in 2005, 11 per cent in 2006. In

2007 it was in single digit.

By September 2008 Raju's share was just 8.27 per cent.

BSE figure also show Vadlamani sold 92,538 shares while the then CEO Ram Mynampati sold

700,000 shares plus 2,50,000 ADRs.


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Apart from these, other senior officials also reportedly sold large number of shares. Sources say

they include one Kiran Cavale who reportedly sold 400,000 shares and 10,000 ADRs and one

Rajan Nagarajan who reportedly sold 430,000 shares and 70,000 ADRs.

Bofors Scandal

Aiming to replace the old field guns and artillery in the hands of the Army, the Indian

government in the mid 1980s decided to go ahead with the induction of bigger calibre 155 mm

howitzers. The Haubits FH-77 gun manufactured by AB Bofors of Sweden, a company which

was once owned by Alfred Nobel, was selected. A deal was signed on March 24, 1986, between

New Delhi and the Swedish metals and armaments major, which said AB Bofors would supply

the Indian Army with 410 155-mm howitzers. An option to license-produce 1000 more guns was

also included in the deal.The amount was a significant $285 million (about Rs 1500 crore) for a

pre-liberalisation India.

The first whiff about the scandal came on April 16, 1987 when a Swedish Radio broadcast

claimed that AB Bofors had paid kickbacks to key Indian policy makers and top defence officials

to secure the deal. News about this broadcast was carried in the Indian media and the Rajiv

Gandhi government issued a prompt denial.

Sitting in her Geneva office, The Hindu's correspondent Chitra Subramaniam was in an

advanced stage of pregnancy when she heard about the broadcast and the newspaper's then


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Editor N Ram asked her to follow it up. What followed thereafter remains unrivalled in the

annals of Indian investigative journalism.

ugust 6, 1987. It submitted its report two years later.

Bofors agent Win Chadha. Letters were sent out to Malaysia and UAE seeking the arrest of

Quattrocchi.

In the subsequent years, the name of the UK-based Hinduja brothers cropped up but in 2000, the

Hindujas issued a statement saying the funds received by them from AB Bofors had nothing to

do with the howitzer order.

Towards the end of 2000, the Malaysian authorities arrested Quattrocchi. But he secured bail but

was asked to stay in the country.

In 2001, two of the accused, former defence secretary Bhatnagar and Win Chadha passed away.

On February 4, 2004, Delhi High Court exonerated Rajiv Gandhi in the case and in 2005, the

same court cleared the Hindujas of involvement.

The Bofors case once again garnered top news spots on April 24, 2012 when Swedish police

chief Sten Lindstrom revealed that he was the Deep Throat in the Bofors case and the key source

that Chitra Subramaniam turned to. He added that the Swedish Police had no evidence of Rajiv

Gandhi or Amitabh Bachchan receiving kickbacks in the Bofors scam.

Fodder Scam


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The Fodder Scam (Hindi:, chr ghol) was a corruption scandal that involved

the embezzlement of about 940 crore (equivalent to 20 billion or US$300 million in 2013)

from the governmenttreasury of the easternIndian state ofBihar.[1]Among those implicated in

the theft and arrested were thenChief Minister of Bihar,Lalu Prasad Yadav,as well as former

Chief Minister, Jagannath Mishra.[2][3] The scandal led to the end of Lalu's reign as Chief

Minister. There is also allegation on Nitish Kumar and Shivanand Tiwari of receiving 1 crore

and 60 lakh Rupees respectively from S.N. Sinha.

The scam

The scam had its origins in small-scale embezzlement by some government employees

submitting false expense reports, which grew in magnitude and drew additional elements, such

as politicians and businesses, over time, until a full-fledged mafia had formed.[6] Jagannath

Mishra,who served his first stint as thechief minister of Bihar in the mid-1970s, was the earliest

chief minister to be accused of knowing involvement in the scam.[9]

.

Exposure and investigation

Laloo Prasad Yadav, then chief minister of Bihar, was a prime accused in the fodder scam

investigation.

On 27 January 1996, the deputy commissioner ofWest Singhbhum district, Amit Khare,acted

on information to conduct a raid on the offices of the animal husbandry department in the town

ofChaibasa in the district under his authority. The documents his team seized, and went public
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with, conclusively indicated large-scale embezzlement by an organised mafia of officials and

business people. The news of fodder scam was first broken out by Indian journalist Ravi S Jha,

who working with the Asian Age then in Calcutta, named the then Bihar Chief Minister of

having implicit involvement in the scam. Based on evidence collected by him from Chaibasa, Jha

not only found out widespread involvement of Bihar government machinery in the scam, he even

mentioned how earlier governments too were taking advantage of a shoddy system, where top

government officials along with the ministers were flouting norms to make money illegally. Jha,

an Associate Director of Public Affairs, is currently working with anti-corruption crusader and

good governance promoter Rajeev Chandrasekhar, the Rajya Sabha Member of Parliament.[11]

Laloo ordered the constitution of a committee to probe the irregularities .[14]There were fears that

state police, which is accountable to the state administration, and the probe committee would not

investigate the case vigorously, and demands were raised to transfer the case to the Central

Bureau of Investigation (CBI), which is under federal rather than state jurisdiction. Allegations

were also made that several of the probe committee members were themselves complicit in the

scam.[14]Apublic interest litigation was filed with theSupreme Court of India,which led to the

court's involvement,[14] and based on the ultimate directions issued by the supreme court, on

March 1996, theBihar High Court ordered that the case be handed over to the CBI.[15]

An inquiry by the CBI began and, within days, the CBI filed a submission to the High Court that

Bihar officials and legislators were blocking access to documents that could reveal the existence

of a politician-official-business mafia nexus at work.[16]Some legislators of theBihar Legislative

Council responded by claiming the court had been misinformed by the CBI and initiating a

privilege motion to discuss possible action against senior figures in the regional headquarters of

the CBI, which could proceed similar to acontempt of courtproceeding and result in stalling the

investigation or even prosecution of the named CBI officials.[16] However, U. N. Biswas, the

regional CBI director, and the other officials tendered an unqualified apology to the Legislative

Council, the privilege motion was dropped, and the CBI probe continued.[16]As the investigation

proceeded, the CBI unearthed linkages to the serving chief minister of Bihar, Laloo Prasad

Yadav and, on 10 May 1997, made a formal request to the federally-appointed Governor of

Bihar to prosecute Laloo (who is often referred by his first name in Indian media) .[17]On the

same day, a businessman, Harish Khandelwal, who was one of the accused was found dead on

train tracks with a note that stated that he was being coerced by the CBI to turn witness for the
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prosecution.[17]The CBI rejected the charge and its local director,U. N. Biswas,kept the appeal

to the governor in place.[13][17]An Income Tax Investigation also blamed Laloo for the scam.

IPL Scam

The 2013 Indian Premier League spot fixing and betting case arose when theDelhi Police

arrested three cricketers,Sreesanth,Ajit Chandila and Ankeet Chavan,on the charges of spot-

fixing.The three represented the Rajasthan Royals in the 2013 Indian Premier League.[1] In a

separate case, Mumbai Police arrested Vindu Dara Singh and Gurunath Meiyappan for alleged

betting and having links with bookies.

Investigation details

Sreesanth was arrested from his friend's house, whereas Chandila and Chavan were arrested from

their team hotel inMumbai.[2]Rajasthan Royals suspended the contracts of the three players until

the investigation is complete.[3] Delhi police have claimed that Sreesanth and Chavan have

confessed being involved in the spot fixing. The police also claimed that Chandila had tried to

get other players, including Chavan, involved in the spot fixing under the direction of the

bookies.[4]TheBoard for Control of Cricket in India (BCCI) suspended the players till further

investigation.[2]BCCI secretarySanjay Jagdale,said,"The BCCI is shocked and saddened at the

recent developments. The BCCI has zero tolerance to corruption. We will offer all cooperation to

the Delhi police and all other authorities in their investigations in this matter. The IPL Governing

Council has met and decided that the cricketers found involved will be dealt with severely."[2]On
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4 June 2013, Delhi Police said that Sreeshant, Chandila and Chavan and 23 other people arrested

by them in the spot-fixing scandal were going to be slapped with the provisions ofMaharashtra

Control of Organised Crime Act (MCOCA) since they were acting under the command of

underworld dons Dawood Ibrahim[5] and Chhota Shakeel.[6] Sreesanth, Ankeet Chavan and 17

other people (including 14 alleged bookies) who were arrested by the Delhi Police were released

on bail on 10 June 2013 by a Delhi court due to lack of evidence to be charged under MCOCA.

Ajit Chandila had not applied for bail.[7]

Delhi Police chief Neeraj Kumar said they had been taping phone calls since April 2013.[4]He

added, "Further arrests will be of bookies and no more players will be arrested."[4]

TheInternational Cricket Council withdrew umpire Asad Rauf from the Champions Trophy in

the wake of reports that the Mumbai Police are conducting an investigation into Asad Raufs

activities in the IPL spot fixing scandal

Harshad Mehta & Ketan Parekh Scam

Harshad Mehta: the high-profile stockbroker

Harshad Shantilal Mehta (1954-2002) was an Indian stockbroker who grabbed headlines for the

notorious BSE security scam of 1992. Born in a lower middle-class Gujarati Jain family, Mehta

spent his early childhood in Mumbai where his father was a small-time businessman. The familyrelocated to Raipur in Chhattisgarh after doctors advised Mehtas father to shift to a drier place

on account of his health.

Transition from an ordinary broker to Big Bull

Mehta, along with his associates, was accused of manipulating the rise in the Bombay Stock

Exchange (BSE) in 1992. They took advantage of the many loopholes in the banking system and

drained off funds from inter-bank transactions. Subsequently, they bought huge amounts of

shares at a premium across many industry verticals causing the Sensex to rise dramatically.

However, this was not to continue. The exposure of Mehta's modus operandi led banks to start

demanding their money back, causing the Sensex to plunge almost dramatically as it had risen.

Mehta was later charged with 72 criminal offences while over 600 civil action suits were filed

against him. Significantly, the Harshad Mehta security scandal also became the flavor of

Bollywood with Sameer Hanchate's film Gafla.
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The 1992 security scam and its exposure

Who is Ketan Parekh

Ketan Parekh is a former stockbroker based in Mumbai who was convicted in 2008 for being

involved in engineering the technology stocks scam in Indias stock market in 1999-2001. A

chartered accountant by training, Parekh comes from a family of brokers and is currently serving

a period of disqualification from trading in the Indian bourses till 2017.

Ketan Parekh has been accorded with sobriquets such as the Pentafour Bull and the One Man

Army by the countrys national business newspapers, while the market simply refers to him as

KP or associates him with his firm NH Securities. Parekh is known to have no reluctance in

meeting the press. He is also known to have razor-sharp forecasts on market developments.

What distinguishes Ketan Parekh from the 'Big Bull' late Harshad Mehta

The two have been compared by people to have operated their scams using similar means and

that their backgrounds were similar as well. But the differences are very conspicuous.

Lady luck disfavours Parekh!

Notably, a day after the presentation of the Union Budget in February 2001, Parekh appeared to

have run out of luck. A team of traders, Shankar Sharma, Anand Rathi and Nirmal Bang, known

as the bear cartel, placed sell orders on KPs favorite stocks, the so called K-10 stocks, and

crushed their inflated prices. Even the borrowings of KP put together could not rescue his scrips.

The Global Trust Bank and the Madhavpura Cooperative were driven to bankruptcy as the

money they had lent Parekh went into an abyss with his reportedly favourite K-10 stocks.

Documents

Steal of Few Hundred and You