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Bigger the Scam, Harder the Efforts Are Required to Expose

Bigger the Scam, Harder the Efforts

-         Are Required to Expose

By Dr. Lalit Kumar Setia |  @drlalitsetia  |  drlalitsetia@gmail.com  |  Created October 13, 2018; Updated October 9, 2019

The investors all around the world seek for the countries safe from corruption so that they can invest their hard-earned money into safe hands. Earning more returns on the invested money, is definitely the main goal but at the same time, the investors also ensure the safety of investment. In order to grab the money of investors, there are a lot of chit companies offering huge returns on investments. It is worth to note that the investors are being made fool by offering double or triple returns in a short span of time on their invested money. Such investments are usually made in cash mode not only to evade the tax, but also to remove all proofs of such malafide transactions.
In the age of cut throat competition it has become difficult to earn profit in business. The companies are doing retrenchment to reduce the cost of operations and in such scenario, investors are searching for the avenues of growth. In India, the economic offenders are leaving India due to loss in businesses. For example, Vijay Mallaya after loss in King Fisher Airlines, Mehul Choksi after loss in business of diamonds, Nirav Modi after losses in business of diamonds and a lot of businessmen who not came in light till date; left India to survive without paying back the loans taken from banks of India. They also hide facts of their real earnings in overseas operations. It is must to authenticity of firms and companies before making an investment. 

How to check authenticity of a Chit Fund Company?

In most of the states, there are registrar of chit fund companies where the investors can check the registration details of a chit fund company. The committees formed to do business in chit funds are listed in the details available with the registrar office. In each chit fund, the investors deposit the money and the same is maintained in passbooks, with details of each deposit in financial documents of the chit fund companies. The documents can be checked online by accessing the records of companies with registrar office. In case of any suspicious work of chit fund companies, the investors can report to the police and it is duty of the police to check and verify the transactions of the chit fund companies.

Scams in Public Sector Organizations:

The Government Accounts are specifically designed to be maintained as per the guidelines of Comproller and Auditor General of India. The money realized through taxing people of India, firstly deposited in Consolidated Fund of India (CFI) and thereafter allotted for expenditure passed in Parliament (a group of representatives of people of India). Whenever an amount is paid out of treasury it is required to be booked or shown in particular head for which the amount is being spent.

Scam in making Expenditure:

I would like to recall a case during 2014 relating to mis-appropriation of expenditure by police department of Jammu and Kashmir. An amount of Rs. 115.68 crore was provided for expenditure under the head, “Carriage of Constabulary and Hiring of Vehicles” to be spent for smooth conduct of Assembly Elections. A complaint received regarding use of fictitious bills and fabricated taxi bills amounting Rs. 88 Lacs for an actual amount of Rs. 8000; the bills were related to hiring of vehicles and payment of taxi bills while no vehicle was hired. The complaint also stated that the vehicle numbers detailed of the rented taxies and buses were not accurate.
In most of the Government offices, the work related to producing bills, processing payments performed by the Class III Officials including clerks, assistants, through the support of contractual staff. The number of scams and scandals have been increasing because the staff involved in performing the functions are not getting enough money as reward for their valuable work.
In Government Departments, a Drawing and Disbursing Officer (DDO) is responsible to ensure the compliance of financial rules. Due to lack of capacity, most of the times they become dependent upon either the subordinate staff working on contractual basis or dependent upon the outsider technical professionals.

Irregularities in supplying seeds in Agriculture Department:

The Agriculture department is responsible to supply the seeds to the farmers and it is required to supply the seeds as per the season when they are required to be sowed. During 2010 to 2015, it was disclosed by the Comptroller Auditor General (CAG) of India; the Agriculture Department of Himachal Pradesh supplied seeds of wheat, maize of amounting Rs. 9.39 crores after the sowing seasons.

Rafale Deal: Secure or Scam

Even after too much allegations, demonstrations around the nation, and hard talks in the assemblies and parliament; the Rafale deal scam is not being exposed entirely. The demand of Joint Parliamentary Committee Investigation by Congress Party in India, the question of Supreme Court regarding process of Rafaledeal, the speech on Rafale deal at the occasion of no-confidence debate on 20th July 2018, and the allegations by the opposition parties of BJP; the Indian Government is not providing the entire details to the citizens on the basis that it is a matter of great secrecy and relating to defense mechanism of nation. The information provided to Court is also not fully correct as disclosed in newspapers. 
 The Congress has alleged that Rafale deal has caused a loss of over Rs. 41000 crores to the exchequer. It is pointed out by Sh. Randeep Singh Surjewala, “A company belonging to a friend of the Prime Minister has been given a contract worth ₹30,000 crores, after snatching it from Hindustan Aeronautics Ltd. (HAL), a public company. It was decided that the corruption scams of the Prime Minister Narendra Modi government, particularly the Rafale scam, will be taken to the people of India”.

How it is a scam when procurement procedure is well followed?

The Rafale deal is related to defence sector and it is subject to follow the defence procurement procedure. In the procedure it is provided that the transactions with value more than Rs. 1,000 Crores will require clearance from the Cabinet Committee on Security (CCS). In Rafale deal, both the clearance of CCS as well as approval of Defence Acquisition Council (DAC) had been taken. During finalization of procurement of Rafale jets, the Indian Negotiating Team (NIT) held 74 meetings for finalize the price, delivery of jet planes, and terms and conditions. Instead of following due procedure in procuring the Rafale jets, the purchase became controversial because of its price. Earlier it had been decided to purchase 126 aircrafts, even tender was also issued in 2007 for procuring the same. Six bidders had provided their quotes and out of six, in technical specifications, two bidders qualified. The process of evaluating the bids took too much time that in 2012 negotiations have been sought with Dasssault Reliance Aerospace Limited (DRAL, a joint venture of Reliance Aerospace Limited and Dassault Group). Then during 2015, the negotiations cancelled and decision of 36 aircrafts with covering weapon systems, performance guarantees and spares; had been taken by Defence Acquisition Council and the agreement signed in September 2016. Why the quantity of aircrafts to be procured reduced and the earlier tender of 126 aircrafts cancelled? Why the joint venture formed with newly started company (Reliance Defence Limited started in March 2015) allowed in this procurement?

Role of Investigating Officers:


Even the investigating officers of CBI becomes under pressure during the inspection of cases. In 2018, the Indian Express reported that an investigating officer complaint and alleged some senior officers of CBI for taking bribes from the companies to fix cases and pressuring officers to weaken the cases. When the officers of CBI can be under pressure then how scams be easily disclosed?

*Copyright © 2018 Dr. Lalit Kumar. All rights reserved.

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