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?
