TOP 10 CORRUPTION SCAMS IN INDIA-MAXIMUM DURING CONGRESS RULE -A CLEAR AND AN OPEN LOOT OF PUBLIC MONEY BY POLITICIANS INVOLVED

Trak.in Viral Dholakia

The post below talks about some of the biggest and most talked about Corruption scams in India. While there are corruption scams being unearthed very regularly, we have selectively come up with list that have been most damaging. Unfortunately in most of the cases, the perpetrator of scams are still at large because cases are pending in Indian Courts.

An average Indian citizen is hard working and diligent, but it is the people in charge of the system (The Babu’s) or with whom the power lays, that act as a cancer spreading the venom, slowing down progress and what not. But, somewhere down the line, we ourselves are responsible for allowing and being taken for a ride by these people, aren’t we? However, it is during a multi-thousand crore scam, that a tax-payer actually realizes the heartburn of being cheated from his valued contribution of funds towards the development and well-being of the nation. But, that’s what a scam, be it big or small, means – the act of swindling by some fraudulent scheme or action.

Some of the below listed scams you would already know about, but some may really surprise you with their size. Please note that the amount mentioned in the scams in appropriation. No one knows exact figures. We have collected the numbers from various sources.

The Top Corruption Scams in India

1. Indian Coal Allocation Scam – 2012 – 1,86,000 Crore

While many think that 2G scam remains the biggest one in size in India. But this coal allocation scam dwarfs it by the amount involved. This scam is in regards to Indian Government’s allocation of nation’s coal deposit to PSU’s and private companies. The scam happened under Manmohan Singh government and came out in 2012.

The basic premise of this scam was that wrongful allocation of Coal deposits by Government without resorting to competitive bidding, which would have made huge amounts to the Government (to tune of 1.86 Lakh crore). However, the coal deposits were allocated arbitrarily.

2. 2G Spectrum Scam – 2008 – 1,76,000 Crore

We have had a number of scams in India; but none bigger than the scam involving the process of allocating unified access service licenses. At the heart of this Rs.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.

In some respects, this remains the biggest scam in India if you consider the inflation. The 2G spectrum allocation happened 5 years earlier than Coal Scam which came out in 2012.

he cases are still going on against many people including A. Raja, M. K. Kanimozhi and many telecommunication companies as well.

3. Wakf Board Land Scam – 2012 – 1.50,000 Crore

In March of 2012, Anwar Maniapddy, the chairman of Karnataka State Minorities Commission submitted a sensational report which alleged 27,000 acres of land, which was controlled by Karnataka Wakf Board had been allocated illegally or misappropriated. The value of land which was misappropriated was in tune of 1.5 to 2 lakh crore rupees.

The land managed by Wakf board, a Muslim charitable trust, is typically donated to under-privileged and poor people of Muslim community. However, the report alleged that nearly 50 percent of the land owned by Wakf board was misappropriated by Politicians and Board members in conjunction with real estate mafia at fraction of actual land cost.

The investigations for this are currently ongoing.

4. Commonwealth Games Scam – 2010 – 70,000 Crore

Another feather in the cap of Indian scandal list is Commonwealth Games loot. Yes, literally a loot! Even before the long awaited sporting bonanza could see the day of light, the grand event was soaked in the allegations of corruption.

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, will-ful delays in execution of contracts, over-inflated price and bungling in purchase of equipment through tendering – and misappropriation of funds.

5. Telgi Scam – 2002 – 20,000 Crore

As they say, every scam must have something unique in it to make money out of it in an unscrupulous manner- and Telgi scam had all the suspense and drama that the scandal needed to thrive and be busted. Abdul Karim Telgi had mastered the art of forgery in printing duplicate stamp papers and sold them to banks and other institutions. The tentacles of the fake stamp and stamp paper case had 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.

6. Satyam Scam – 2009 – 14,000 Crore

The scam at Satyam Computer Services is something that will shatter the peace and tranquility of Indian investors and shareholder community beyond repair. Satyam is the biggest fraud in the corporate history to the tune of Rs. 14000 crore.

The company’s disgraced former chairman Ramalinga Raju kept everyone in the dark for a decade by fudging 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.

7. Bofors Scam – 1980s & 90s – 100 to 200 Crore

The Bofors scandal is known as the hallmark of Indian corruption. The Bofors scam was a major corruption scandal in India in the 1980s; when the then PM Rajiv Gandhi and several others including a powerful NRI family named the Hindujas, were accused of receiving kickbacks from Bofors AB for winning a bid to supply India’s 155 mm field howitzer.

The Swedish State Radio had broadcast a startling report about an undercover operation carried out by Bofors, Sweden’s biggest arms manufacturer, whereby $16 million were allegedly paid to members of PM Rajiv Gandhi’s Congress.

Most of all, the Bofors scam had a strong emotional appeal because it was a scam related to the defense services and India’s security interests.

8. The Fodder Scam – 1990s – 1,000 Crore

If you haven’t heard of Bihar’s fodder scam of 1996, you might still be able to recognize it by the name of “Chara Ghotala,” as it is popularly known in the vernacular language. 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.

9. The Hawala Scandal – 1990-91 – 100 Crore

The Hawala case to the tune of $18 million bribery scandal, which came in the open in 1996, involved payments allegedly received by country’s leading politicians through hawala brokers. From the list of those accused also included Lal Krishna Advani who was then the Leader of Opposition.

Thus, for the first time in Indian politics, 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 channeled to Hizbul Mujahedeen militants in Kashmir.

10. Harshad Mehta & Ketan Parekh Stock Market Scam – 1992 – 5000 Crore Combined

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.

Who are the biggest Banking Loans defaulters in India -Industry wise.

Harsh Vardhan Singh

Banker (PSB), Engineer-Projects Planning & Sales (Ex), an Artist & Blogger

Some top industry and their prime reasons are listed below.

• Textiles Industry

Huge competition from SE Asian countries has lead to low demand and hence when you start making loses which is not under your control it is pretty evident that default will take place.

• Mining Industry

Recently the cancellation of mines allotted by the SC has lead to major problems in this industry. One must understand one thing is webbed with other. If A was caught in ill practices and have been barred, it leads to problems of stalled projects in other segment. Hence defaults.

• Steel Industry

Cheap steel from China has created huge problems for the Steel Industry. Even though we have Anti dumping laws but still we cannot be too tight and face troubles in the WTO.

Imagine the situation here, again some market forces creates trouble for these big industry and hence as they are related to each other it creates problems.

• Infrastructure Industry

Many reasons like over leveraging before the sub prime crises (2007). Here it's again complicated with stalled projects and hence 24% of loans are stressed.

Eventually it may lead to defaults in various scenario.

• Aviation

Policies related to ATF fuels and foreign flights have lead to 61% of loans stressed.

Although, I am not defending all the defaulters. Some defaulters like Vijay Malaya should be penalized by not repaying the loans even if he is capable of. This can be subject to debate so I am ending this here.

Is taxpayers money used to leverage these loans in anyway?"

These loans are taken from banks and currently if you check the PSB then we have 4 Lakh crore worth of NPA. Our Stressed assets are 8 Lakh crores.

In a way Taxpayers money are used to leverage these loans because we cannot allow our banks to collapse and create economic turmoil.

Finally no one knows whose names are there in the list but I have provided you the gist of defaulters in terms of Industry.

Soon if the SC wishes you may get the list but that is truly bad for economic growth as not every defaulter is a willful defaulter or sinner. Business involves risks and someone has to pay for it.Views are personal.

CBI arrests REI Agro chairman, promoter for bank loan fraud

BY PTI | UPDATED: MAY 04, 2017, 10.22 PM IST

The CBI today arrested the chairman of REI Agro along with a promoter of the company in connection with an alleged bank loan fraud of Rs 3,871 crore. 

Chairman Sanjay Jhunjhunwala, who was facing a Red Corner Notice issued by the United Arab Emirates, was arrested after he returned from abroad. 

The CBI had also issued a Look Out Circular against him. 

Promoter Sandip Jhunjhunwala was also arrested by the agency here today. 

The agency had registered a case against them and the Kolkata-based REI Agro, which deals with Basmati rice exports, in October 2015. 

The action was taken on the complaint from a consortium of 14 banks led by UCO Bank.

It was alleged that the company had defrauded the banks to the extent of Rs 3,871 crore since 2013 through conspiracy, cheating and forgery, the spokesperson said. 

It is alleged that the company cheated the banks using 150 shell companies, on the basis of fixed commission, through a group of brokers by creating false invoice, documents of money transfers for non-existent transactions, CBI sources said. 

They said Jhunjhunwala was also facing a case of misappropriation of AED 160 million for which the UAE authorities had issued a Red Corner Notice against him. 

He is.Sandip Jhunjhunwala of REI Agro.

THEY WANT TO KILL THE EURO:WHY MANY EUROPEANS WANT THEIR MONEY BACK? Extracts from an important article published by CNN MONEY

by Ivana Kottasová   @ivanakottasovaMay 4, 2017: 7:01 AM ET

Sergi Cutillas was thrilled when Spain joined the euro. Now he wants out.

"The eurozone has failed. It was a bad experiment," he said. "It was wishful thinking."

The 34-year-old economist wants Spain to abandon the euro. He's far from alone: 25% of the people who use the common currency want to ditch it, according to the latest European Union poll.

The threat to the euro is most acute in France, where people will vote Sunday in the final round of a presidential election that features Marine Le Pen. The far right politician wants France to abandon the currency union.

The euro, the currency of 19 EU countries, is the most visible symbol of the region's long experiment with economic integration since the end of World War II.

But it's now under threat from politicians on both the left and right who want to bring the lira, drachma, peseta and French franc out of retirement.

Here's why some Europeans want to kill the euro:

'Europe is not a nation'

For Alberto Bagnai, the case against the currency boils down to this: European countries are not the same, and so they shouldn't use the same currency.

"The basic point is that you cannot have a federal state among citizens from countries with such a different cultural past," said the Italian academic. "Without a European state, you cannot have European money."Some European countries are richer, some are poorer, like American states. But unlike the U.S., the eurozone does not have a central government to decide on spending, tax and budget policies.

"The U.S. is a nation, there is a sense of common identity," he said.

That's not true in Europe, where there's little prospect of political unity because wealthier nations such as Germany would end up transferring money permanently to the less fortunate.

"Germany does not want this," said Bagnai. "We should stop telling fairy tales."

'Optical illusion'

Such deep divisions were not always so apparent.The interest rates that Spain, Greece and Italy needed to pay creditors plummeted after they joined the euro -- putting them on a par with Germany.

"Investors looked at nominal interest rates and thought the Greeks have become German," said Bagnai. "It was kind of an optical illusion."Then the financial crisis hit, and cracks in the monetary union began to show.

In Spain, policymakers weren't able to make the euro cheaper to counter the collapse of a property bubble and debt crisis.

Instead, Madrid was forced to reduce spending and implement an austerity program -- and that hit living standards.

"The 20% unemployment we now have in Spain is a direct result of the euro," said the economist Cutillas.Cutillas said that many people in Spain, which endured decades of violent dictatorship under Francisco Franco, support the euro because it's associated with progress, modernity and peace. That isn't enough for the economist.

"It's nice to be able to travel around easily and have easy means of payment, but these advantages shouldn't cover what's happening with the euro," he said.

A Greek tragedy

Greece is a prime example of the division between wealthy northern European countries and weaker economies on the continent's periphery.

Facing a debt crisis of its own, Athens agreed to drastic austerity programs in exchange for repeated bailouts. Salaries, pensions and government spending have all been cut dramatically.

Fotis Panagiotopoulos, a dock worker at the Athens Port Authority, experienced the consequences first hand.His salary has dropped 50% since the beginning of the Greek crisis in 2010. His wife can't find a stable job.What we are experiencing in Greece is slow death," he said. "There is no way out unless we break free from this debt cycle.Panagiotopoulos wants Greece to ditch the euro and start over.We just want to make sure that we, and our children, can have a decent future," he said. With the euro, I don't see how this is possible.

Ireland's euro-bubble

Remember the Celtic Tiger? Ireland boomed in the euro's early years, growing on average 6.5% a year between 1999 and 2007.

Keith Redmond, a dentist and local politician in Dublin, looks back on those days with fear.

It wasn't a boom. It was a bubble ... a euro-currency bubble," he said.

Redmond argues that without control over its interest rates, Ireland wasn't able to cool the bubble.When it burst, it brought the Irish banking system to the brink of collapse. Ireland was forced to slash spending.Ireland has turned the corner and its economy is growing again. But for Redmond, the euro remains a problem.The fundamental flaw is still there ... this can all happen again. We have no flexibility in our monetary system to deal with a shock," he said.

French nationalism

Vincent Brousseau is a French economist. But for him, the trouble with the euro is not about the economics.Instead, he sees the common currency as a threat to France's national sovereignty.It's not French," he said of the currency. "It doesn't matter whether it's overvalued or undervalued... this is about making our own decisions."

He's had a major change of heart. Brousseau worked for the European Central Bank until a few years ago.When I started at the ECB, I believed there could be one Europe, I was a convinced European," he said.But he gradually changed his opinion over the 15 years he spent at the central bank that sets a common interest rate for all 19 eurozone countries.

I realized that transferring sovereignty from France to the European superstate is not good for the country," said Brousseau, who now oversees economic and monetary policy at French political party 

What's next

Opponents of the euro disagree on what should happen next.

Redmond would like to see the currency split into two. The current euro would be used by Germany, Netherlands and other economically stronger countries. A second, weaker euro, would be introduced for Portugal, Italy, Ireland, Greece and Spain.

Brousseau wants France to completely drop the euro and bring back the franc. He's not a fan of the the compromises proposed by Le Pen, who has suggested that a new pan-European currency could be used in parallel to the franc.

In Italy, Bagnai thinks the end of the euro is an inevitability.

We know that the project could last for a decade, perhaps, but it's going to end. And the sooner it ends the better.

-- Elinda Labropoulou and Maud Le Rest contributed reporting.

CNNMoney (London)First published April 19, 2017: 5:32 AM ET

ISRO UNVEILS SOLAR HYBRID ELECTRIC CAR MADE OF LOCAL RESOURCES

BY SRINIVAS LAXMAN, TNN | UPDATED: MAY 04, 2017, 11.36 AM IST

MUMBAI: The Indian Space Research Organisation (Isro) recently demonstrated a solar hybrid electric car, designed and developed using in-house resources, at Vikram Sarabhai Space Centre (VSSC) in Thiruvanathanapuram. Isro made an announcement about this environment-friendly car on Monday. 

VSSC is Isro's centre for making various types of rockets like the Polar Satellite Launch Vehicle and the Reusable Launch Vehicle. The demonstration of the green-friendly vehicle, held in the last week of March, included a successful uphill drive. Isro is now researching ways to cut down the car's cost. 

Isro said vehicles using fossil fuels cause problems to environment and life. "An ideal transportation system should envisage zero emission without any pollution," it said. 

The car is run using high-energy lithium ion batteries, which can be recharged using sunlight, said sources. The main challenges in developing the vehicle included designing a solar panel on top of the car and also control electronics for the battery and solar panel interface and, what is known as, "drive electronic" to run the car smoothly. 

Non-residents don’t need to quote Aadhaar for ITR filing, PAN

04 May 2017 | E-Paper

Non-residents will not have to quote Aadhaar or its enrolment ID for filing income tax returns (ITRs) or for securing PAN, income tax department said

There are more than 25 crore PAN card holders in the country while Aadhaar has been issued to 111 crore people. Photo: Hindustan Times

New Delhi: Non-residents will not have to quote Aadhaar or its enrolment ID for filing income tax returns (ITRs) or for securing permanent account numbers (PAN), the income tax department on Wednesday clarified.

The move addresses concerns among migrants who have resided in India for 182 days or more in the preceding 12 months as defined in the Aadhaar Act, 2016. The tax department’s move is significant as non-residents may be few in numbers, but may be key decision makers in the corporate sector.

A statement from the department said the tax law was amended through Finance Act, 2017 requiring mandatory quoting of Aadhaar or the enrolment ID of Aadhaar application form for filing of return of income and for making an application for allotment of PAN with effect from 1 July.

This requirement, however, shall not apply to an individual who is not a resident as per the Aadhaar Act, 2016, the department clarified.

Experts welcomed the move but said it would have been better if the relief was made available to expats who stay in India for slightly longer period.

Amarpal Chadha, tax partner and India mobility leader, EY India, said, “It will be more beneficial if the exception could be extended even to those individuals who qualify as ‘resident-but-not-ordinarily-resident’ under the Income Tax Act. These are generally expatriates who come to India for a duration of two to three years. These expatriates are anyway required to apply for a permanent account number for deposit of taxes,” said Chadha.

Gireesh Chandra PrasadRemya Nair

All ITR forms now available for e-filing on Income Tax department website

PTIUpdated: May 04, 2017, 04.50 PM IST

NEW DELHI: The Income Tax department today activated the e-filing facility for all categories of Income Tax Returns (ITRs) for the assessment year 2017-18. 

The new ITRs have been made available for filing on the e-portal of the department -- https://incometaxindiaefiling. gov.in. 

"All ITRs are now available for e-filing on the website of the department," a senior I-T officer said. 

A taxpayer should keep ready a copy of last year's ITR, bank statements, Tax Deducted at Source (TDS) and savings certificates, Form-60 and other relevant documents on interest paid ready before attempting the e-filing, the officer added. 

The e-verification of ITRs can be done through the Aadhaar number which will allow them to complete all the formalities with a click on the computer and the ITR-V (acknowledgment) will not have to be sent by post to the Central Processing Centre (CPC) in Bengaluru. 

"Already 2,59,831 ITRs have been e-verified in this fiscal using the Aadhaar," the officer added. 

The government, as per the Finance Act 2017, has made it mandatory for taxpayers to quote Aadhaar or enrolment ID of Aadhaar application form for filing of ITRs. 

Also, Aadhaar has been made mandatory for applying for permanent account number with effect from July 1, 2017. 

The Central Board of Direct Taxes (CBDT) had launched all the seven ITRs for AY 2017-18 on March 31 including the one- page simplified ITR-1 (Sahaj) for salaried class and people having income from one house and interest totalling up to Rs 50 lakh. 

ITRs can be filed till July 31. 

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Chinese newspaper's caustic response to an ET article on how Beijing is trapping Asia in debt

BY ECONOMICTIMES.COM | UPDATED: MAY 04, 2017, 12.22 PM IST

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North Korea issues direct criticism on China amid nuclear dispute

By AP | May 04, 2017, 11.11 AM IST 

SEOUL, SOUTH KOREA: North Korea has issued a rare direct criticism of China through a commentary saying its "reckless remarks'' on the North's nuclear program are testing its patience and could trigger unspecified "grave'' consequences. 

China, North Korea's largest trading partner and main benefactor, suspended imports of North Korean coal in line with U.N. sanctions and has been urging its traditional ally to stop nuclear and missile activities amid U.S. pressure to use its leverage to resolve the nuclear standoff. 

The commentary released Wednesday by the state-run Korean Central News Agency said that "a string of absurd and reckless remarks are now heard from China everyday only to render the present bad situation tenser.'' 

The article cited commentaries by Chinese state media that it said shifted the blame for deteriorating bilateral relations onto the North and raised "lame excuses for the base acts of dancing to the tune of the U.S.'' 

"China should no longer try to test the limits of the DPRK's patience,'' the North Korean commentary said, using its official name, the Democratic People's Republic of Korea. "China had better ponder over the grave consequences to be entailed by its reckless act  of chopping down the pillar of the DPRK-China relations.'' 

The article was not attributed to any government agency or official; the writer was identified only as Kim Chol. Still, it's unusual for the North to directly criticize China. Previously it has couched such criticism by referring to China only as "a neighboring country.'' 

Chinese state media, meanwhile, have recently unleashed regular and harsh criticisms over the North's actions. 

The Global Times, an outspoken nationalist tabloid published by the ruling Communist Party's flagship People's Daily, warned in a Thursday editorial that the North's actions threatened a 1961 treaty of non-aggression between the two countries. It called on the regime to end its nuclear tests. 

"China will not allow its northeastern region to be contaminated by North Korea's nuclear activities,'' the Global Times declared. 

In recent days, the paper also warned that China was able to strike back "at any side that crosses the red line'' and would impose an oil embargo against the North in response to any more tests. The North Korean commentary said it's China that crossed "the red line.'' 

The People's Daily declared Sunday -- and again on Tuesday -- that the North's nuclear ambitions "put itself and the whole region into dire peril.'' 

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