19-11-2012, 12:51 PM
SCAMS IN INDIA
SCAMS IN INDIA[.pptx (Size: 1.02 MB / Downloads: 224)
QUOTE
"India needs to deal with the malice of corruption and improve governance in Asia's third-largest economy." Prime Minister Manmohan Singh said on March 18, 2011.
INTRODUCTION
Political and bureaucratic corruption in India are major concerns. A 2005 study conducted by Transparency International in India found that more than 15% of Indians had first-hand experience of paying bribes or influence peddling to successfully complete jobs in public office.
In 2010 India was ranked 87th out of 178th countries in Transparency International's Corruption Perceptions Index.
From 1948 through 2008 India lost a total of $213 billion in illicit financial flows (or illegal capital flight). These illicit financial flows were generally the product of: corruption, bribery and kickbacks, criminal activities, and efforts to shelter wealth from a country's tax authorities. (51)
According to the data provided by the Swiss Banking Association Report (2006), India has more black money than the rest of the world combined.
Jeep Purchase(1948)
– Free India's corruption graph begins. V. K. Krishna Menon, then the Indian high commissioner to Britain, bypassed protocol to sign a deal worth Rs 80 lakh with a foreign firm for the purchase of army jeeps. The case was closed in 1955 and soon after Menon joined the Nehru cabinet.
Mundhra Scandal(1957)
It was the media that first hinted there might be a scam involving the sale of shares to LIC, Feroz Gandhi sources the confidential correspondence between the then Finance Minister T.T.
Krishnamachari and his principal finance secretary, and raised a question in Parliament on the sale of 'fraudulent' shares to LIC by a Calcutta-based Marwari businessman named Haridas Mundhra. The then Prime Minister, Jawaharlal Nehru, set up a one-man commission headed by Justice M.C.Chagla to investigate the matter when it becomes evident that there was a prima facie case.
Chagla concluded that Mundhra had sold fictitious shares to LIC, thereby defrauding the insurance behemoth to the tune of Rs. 1.25 crore. Mundhra was sentenced to 22 years in prison. The scam also forced the resignation of T.T.Krishnamachari.
Bofors scam
Bofors Scam The Bofors scandal is known as the hallmark of Indian corruption. The Bofors scam was a major corruption scandal in India in the 1980s;
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.
The name of the middleman associated with the scandal was Ottavio Quattrocchi, an Italian businessman who represented the petrochemicals firm Snamprogetti. Quattrocchi was reportedly close to the family of Prime Minister Rajiv Gandhi and emerged as a powerful broker in the 1980s between big businesses and the Indian government.
The Hawala scandal
The Hawala Scandal 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 channelled to Hizbul Mujahideen militants in Kashmir.