White collar crimes – who is accountable: Bureaucracy or Executive?

These politicians never understand that economic offences are committed by businessmen in collusion with corrupt bankers under the able advice of ‘financial and legal wizards’ and politics doesn’t have much of a role. Though sometimes bankers listen to their ‘advices‘. The system should be cable of early detection of misuse and diversion. Politicians come to play only when there is wilful default and the looter scoots: that is when ‘horse has bolted the stable’. It is a well known fact that they run out of the country ‘with their blessings’ before the scam breaks out in the open.

Thus the politicians should be held responsible only when ‘the law doesn’t take its own course’. Look at the bedlam unveiled when Mallya and Nirav ran out of the country. The whole opposition mischievously ganged up to blame the present regime though the scams date back to the earlier dispensation. The opposition could probably succeed in convincing the public that the present regime has not only a role in the scam but also responsible for the letting them out of the country. The later part might well be answered by the ‘systems and procedures in place!’

It is ironic that Mamta retorts from the roof top that the credit for the attest of the fugitive jeweller Nirav modi should go to the daily Telegraph reporter and NOT TO BJP? The other joker and the ‘family’ stooge Gulam Nabi Azad declares that the fugitive will be returned back to London ‘after the elections’.

Mamta reacted almost in the same way when Balakot retaliation took place: congratulated specifically ‘IAF’! Hilarious, isn’t it? With the queuing up many extraditions such as of Michel and the likes, they fear that the ‘chowkidhar’ status to Modi might well sell. If the fugitives flee the country, Narendra Modi is responsible but when they are extradited it is due to Scotland Yard! Obviously, the opposition leaders are extremely nervous of getting ‘decimated’.

But, apart from Nirav’s arrest being a clear sign that this is not the same India which will allow economic offenders to loot the country & evade the long arm of law, Some questions linger in the minds:

How for almost a year or so he was able to conduct business incognito and also travel in out of UK inspite of Interpol’s ‘red alert notice’?

Even after days of his being spotted in busy London street by a news reporter, why was he not arrested?

When the likes of Mallya could get easily bail even without a day of life in jail, why he couldn’t?

It is very difficult to understand not only who is accountable for the white collar crimes but also when to arrest the culprits. With Nirav not getting the bail and spending ‘Holi‘ day at prison, It is even more difficult to predict who would jump the bail!

Mallyagate

Some rats require ingenious method for catching?

Embattled liquor baron Vijay Mallya has repeatedly tweeted, not long ago, that as his life is at risk he is not planning to return to india. But now, surprisingly, the main accused in the Rs 9,000 crore alleged bank fraud case, is understood to have sounded out to Indian authorities that he is willing to come back home to face the law, If sources are to be believed.

He had recently said he has become the “poster boy” of bank default and a lightning rod for public anger; the present regime is not interested in recovering the loan but only in hunting for his head with an eye on the forthcoming elections; he is prepared to repay the loans; bla bla…..

It could be anybody’s guess that the present contemplation of return of this playboy now to his ‘native’ country might be the consequence of the recently enacted “Fugitive Economic Offenders Ordinance”.

A special court in Mumbai had last month issued summons to the beleaguered businessman to appear before it on August 27 on the Enforcement Directorate’s plea seeking action against him under this act. As part of this action, it has also sought immediate confiscation of assets worth around Rs 12,500 crore! If he does not appear before the court or respond to its summons on the designated date, Mallya risks being declared a fugitive economic offender, besides properties linked to him being confiscated!

Obviously, the crooked baron must have done some astute arithmetics in contemplating such a move of return to his native country despite ‘perceived threats’ to his life!!

Catching big rats require ingenious methods – right?

NDTV-PC Nexus

NDTV-PC Nexus: Whistleblower of NDTV frauds, Income Tax Commissioner Sanjay Kumar Srivastava has informed the Central Bureau of Investigation (CBI) that the former tainted Finance Minister P Chidambaram had parked 40 million dollars (Rs.200 crores) in NDTV in 2006 as an investment from a Maxis subsidiary All Astro Asia Network.

In his detailed letter, Srivastava also told CBI Director that certain CBI officials closed down the Preliminary Enquiry against three IRS officers who were in charge of NDTV’s Income Tax related files. “Presently different divisions of the CBI are handling the cases of the bribe paid by NDTV Ltd to IRS officers and their conduits (Sumana Sen IRS & her spouse and then NDTV anchor Abhisar Sharma and accomplices Ashima Neb IRS and BK Jha IRS) and the embezzlement of Rs.1,46,82,836 from Government account by NDTV Ltd,” said the Income Tax Commissioner SK Srivastava in his letter.

one may not get surprised if PC is the real owner of NDTV! We can understand the hostile postures of NDTV to this present government…

Rafale Deal – Part 1: SC Review

Narayani Ranganathan has written very good post on MiLords:

By Over-Reach On Rafale, SC Is Now Party To The Weakening Of Institutions

If the Modi government has any self-respect, it should show the court its place in democracy and say it cannot divulge details of the Rafale deal in a “sealed cover”.

The next time the Indian Army chief is asked to fight a war, maybe he should consider placing his battle plans in a “sealed cover” before the Chief Justice of India (CJI) so that the country achieves true transparency before it can legitimately defend itself. After all, what’s better than transparency in a democracy adjudicated by men (almost always men) in black robes?

If you think this statement is rather outlandish, this is the logical outcome of the Supreme Court demanding to know the price of a Rafale combat aircraft. In hearings (31 October), a bench comprising Chief Justice Ranjan Gogoi, and justices U U Lalit and K M Joseph, said “the court would like to be apprised of the details with regard to the pricing/cost, particularly the advantage thereof, if any, which again will be submitted to the court in a sealed cover.”

We will come back to the farcical nature of contents delivered in “sealed covers” later, but let’s first look at how the court has inserted itself into a technical decision regarding which aircraft the country should buy for its defence, how much it should pay for the same, and whether the price paid is worth it.

Earlier, on 10th October, the bench had merely wanted to know how the government decided on its Rafale deal with Dassault, and the government duly complied by giving it a statement on the decision-making process in a “sealed cover” on 26 October. Now, the court not only wants to know how the deal was decided, but whether the decision itself was right.

How is it the job of the judiciary to decide this issue? Is it even equipped to do so? Let’s say the government tomorrow gives it another sealed envelope indicating that the price being paid for each Rafale is “x”, and then offers a paragraph each on the advantages of each weapon system, radar, or device attached to the combat aircraft.

The farce involved in giving information in a sealed envelope should be obvious to anyone who can think beyond basics. Sealed covers are not meant to remain sealed; at the very least, the CJI will have to open it. Will he then take one look and decide for himself if the answers given are valid or not, especially when the subject is technical? Will he discuss it with his spouse, or fellow-judges before arriving at a decision?

What, one may ask, is the court’s competence to decide on any of this?

Zero.

And if it is zero, it follows that if at all the court wants to figure out whether the price was right, the weapon systems were right, and that the difference in prices paid for a fully-loaded Rafale and the deal being negotiated earlier was justified, will it not need another expert panel to advise it on the matter before it takes a view? Or will it ask Rahul Gandhi, Arvind Kejriwal, Arun Shourie and Yashwant Sinha to help it decide whether the deal was kosher?

No. It will call in experts.

And once experts are going to be consulted, where is the question of secrecy in a defence deal with huge implications for security? How many ‘experts’ will an ‘eyes only’ document be shown to till it is leaked to the press, and possibly hostile countries?

Why then it is so outlandish to suggest that even war plans can be given to the court in a sealed envelope?

Now after discussing the contents with many ‘experts’ what will the CJI do with them ? Will he read and destroy? How is the government to know that these secret details are indeed destroyed to be sure that they don’t fall in the wrong hands?

Will the CJI file an affidavit to himself that all secret contents are destroyed, and that he personally supervised it?

The opposition, knowing the government is in a spot, is cheering the judiciary on and giving it covering fire in this blatant effort to dismantle the constitutional separation of powers between elected governments and the judiciary. There is a chorus that the government is “destroying” institutions, as if this judicial encroachment is itself not an attempt to circumscribe and debase the institution of the executive and the legislature.

The executive is as much a creature, and “basic feature”, of the Constitution as the judiciary, and the Supreme Court should respect this separation of powers and not try to run the country – or its defence – through judicial orders.

This act of the judiciary is a coup. It attempts to undermine not just the elected representative, but the people of this country (for who the court never had any respect ever)

And one may well ask what happened to the names of eight allegedly corrupt former CJIs that were given to the Supreme Court in 2010 by Shanti Bhushan, the father of the compulsive PIL-ster now using the judiciary to demand more secret disclosures in sealed covers.

We are heading towards kritarchy, or rule by the judiciary, and this is an even bigger threat to democracy than mere authoritarian leaders. The latter are elected, and hence can be rejected by the electorate, but the judiciary is accountable to no one but itself.

If the Narendra Modi government has any self-respect, it should tell the court it cannot divulge these details. Let the court do what it will. What will it do? Send the PM and the Defence Minister to jail?

The article is credited to Professor Makkhan Lal of Prayagraj University.

Aircel maxis scam

The CBI has finally filed the charge sheet that the Congressman “dishonestly” didn’t raise any objections when the proposal was put up to him mentioning the ‘par value’ of the investment, despite knowing that, that was the only proposal where the phrase ‘par value’ was used. The agency alleged that the FIPB officials and P Chidambaram ‘deliberately suppressed’ the total investment figure.

To avoid being sent to the cabinet committee, the value of the foreign investment proposal was pegged down to 180 crores arrived at based on par value of the shares instead of market value! The actual investment is more than 3000 crores which is way beyond the approval limits of the committee headed by the FM which is only 600 crores! Is it not clear that this approach was conceived only to hoodwink during a scrutiny, if at all there is one, with malafide intentions!

Can a person of the ‘intelligence’ and experience (both legal and ministerial) of PC, feign ignorance’ of such a gross deviation in a major proposal being put up to him for approval? Did he worry that he might have to share the crumbs with many more if it goes to the next level of clearance?

Can he camouflage the misdemeanour with a defence that the proposal was put up for his approval after due scrutiny by the competent officials of his ministry? Would it be too difficult for his son to influence them even without their boss giving a visible signal?

The obvious deviations legally are:

This par value approach is unique unlike other similar proposals being put up and the firms related to him has recd more than a crore after the approval was received in many instalments…wafer thin arguments, as it may seem, isn’t it?

In another case in which PC has not been included in the charge sheet but his son has been arrested, indirani Mukerjee has confided to the investigating authorities, that hush money has indeed been paid to Karthi, as advised by PC, in his foreign accounts, to riggle out of a dubious foreign investment proposal.

“I was not aware” – was the typical reply of Chidambaram when cornered with son Karti’s firms getting around two lakh dollars from Maxis. Chidambaram many times lied that he was not aware of son’s business operations. To the questions, on violation of the FIPB and Cabinet Committee of Economic Affairs (CCEA) norms, Chidambaram repeatedly said that he just signed files vetted by officers. It is learnt that many officers have given statements to the Central Bureau of Investigation (CBI) and ED that they were forced to sign on all files as per the wishes of then Finance Minister Chidambaram in 2006.

As FIPB Chairman, the Finance Minister Chidambaram had power to approve only foreign investments up to Rs.600 crores those days. Approvals of over Rs.600 crores value have to be sent to the Cabinet Committee for Economic Affairs (CCEA), where he was the Chairman. The Aircel-Maxis approval was above Rs.3500 crores and Chidambaram did not send the files to CCEA. The reasons cited for his not sending it to the CCEA, is believed to be that the Home Ministry was also part of CCEA in Telecom affairs and as Maxis’s shareholder Saudi Telecom is a partner of Pakistan Telecom, the Home Ministry won’t approve the deal.

Later the Office of the Comptroller and Auditor General (CAG) found that though the illegal approval was for Rs.3600 crores, the actual money that came from Maxis to Aircel was more than Rs.4800 crores! This exposed a gap of more than Rs.1200 crores. Karti’s controversial firm Advantage Consulting and Chess Management also got money from Maxis and the ED has already attached more than Rs.1.16 crores worth of bank deposits belonging to him.

When he was asked to come again, Chidambaram trotted out several excuses. Finally, the agency asked him to appear again by the end of June for further questioning.

Is it clear that the mind need not be as white as the clothes one wears? Unfortunately, dishonesty is always very difficult to be established in a court of law and is always a subject prone to the interpretations based on the tint of the glasses you wear! The statue of justice has anyway closed her eyes to avoid seeing all these long time back..!!

There would be no wonder if PC goes scot free, if at all a verdict is pronounced in OUR LIFETIME…

Loot and Scoots

When the crooked baron made a cynical remark, recently outside the London court, on an apparently inconsequential utterance with Jaitley in the parliament lobby, he insidiously let a cat among the pigeons! Witness the ruckus of the high decibel trading of accusations of the political parties wittingly trying to score rhetoric points leaving the systemic fault lines intentionally unattended. 

Look at the chronicle of ‘Great Escapes’: 

On December 7, 1984, when a state government aircraft ferried Warren Anderson from Bhopal to Delhi, from where he fled to the United States, Justice was denied to the thousands affected in the Bhopal gas tragedy, 

In July 1993, the Swiss courts permitted to make public the names of the beneficiaries behind the Swiss accounts, and Ottavio Quattrocchi was named. Even as the CBI tried to move the court to impound his passport, Mr Q fled on July 29, 1993. 

In April 2010, the BCCI stumped Lalit Modi and suspended him pending enquiries. Amidst the high-decibel accusations and imminent attest, he departed to London. 

Earlier this year, history repeated itself as Nirav Modi fled the country as the Rs 14,000 crore “letter of undertaking” Punjab National Bank scam unravelled. Closely thereafter another exporter, Mehul Choksi, left the country. 

The government informs the Parliament: “The number of Indians involved in financial irregularities with the banks as well as who are under criminal investigation (who are living abroad/fled abroad) during the last three years is 23.”  The government is pursuing extradition of 16 individuals from UK alone!

Theoretically, there should not be a recurrence, but practically systemic sloth enables sequels. The system, it would seem, had built-in mechanisms for those with affordability and ability to enable the accused to simply take a flight. The standard operating practices are well-known to both the defrauded institutions and to fraudsters.

Whether the passage of the law on fugitive economic offenders, on July 25, 2018, would change the landscape of the loot and scoots, remains to be seen!