CBI

July 4, 2011

Supreme Court becomes School Master for Corrupt Indian Government (Congress Party) – Appoints 2 Former Judge SIT (Jeevan Reddy,MB Shah) Black Money Case

India's Supreme Court took the matter of hundreds of billions of dollars of Black Money stashed into foreign bank accounts into its own hands as the government has repeatedly failed to take any action stalling the case.The Indian government led by the Congress Party has been repeatedly blasted by the Supreme Court for not acting against corruption matters.Recently the Court in an unprecedented move took over the supervision of the CBI in 2G Telecom Scandal Case Investigation.Note CBI is under the Home Ministry and like other investigations was being tardy to take action government ministers.The 2G Telecom case has resulted in top ministers and corporate CEOs being jailed with prospects of more being convicted.
July 4, 2011

Sun TV,Spice Jet – Why you should not invest in Crony Capitalism Stocks/Companies as COO goes to Jail,Promoter Maran accused of Corruption as DMK Loses Power,Thaksin Stocks Rally

Not only that but with the loss of political power,Sun TV executives can no longer manage to intimidate the industry.The Sun TV COO Saxena was hauled off to jail in a cheating case filed by a film producer.Note this would have never happened in the earlier DMK regime as the police would have refused to even lodge a case let alone put Saxena in jail.Crony Capitalism is not without its dangers and betting on these stocks is not a great idea.The reason is that once the political party loses power which happens quite frequently in India then the businesses close to that party come under serious fire.Note Dayanidhi Maran is also facing the heat in the 2G Scam where he has been accused of amassing huge amounts of money by favoring close promoters.When he was the Telecom Minister the whole Sun TV group of companies used state telecom infrastructure for free.The whole lesson from this is that betting on stocks/companies close to the ruling party might not be a good idea.In fact opening an event driven hedge fund might be a good idea using power changes in crony capitalist democracies.Thanksin stocks are rallying Thailand today as his sister has won the elections.
July 2, 2011

India Business-Politician Nexus Intimidates Poor Tribals Selling Land cheaply for Janjgir Champa Power Plant (Videocon,Kanwar) Twist Laws

Indian Businessmen and Politicians have been looting the citizens and the treasury of billions of dollars through numerous corruption scams and scandals.While the focus has been on the big corruption scandals at the centre being perpetrated by ruling party politicians,opposition party has not been far behind.The Nira Radia Tapes revealed the extent to which the Indian politicians have sold the state to big business.Major ministers are appointed by the major industrial conglomerates leading to billions of dollars in embezzlement.There are numerous instances like the Commonwealth Games Scam,Adarsh Scam,the 2G Telecom Scam etc.Many of the politicians are now big businessmen themselves owning companies legally and illegally.According to Nira Radi,India's agricultural minister is the benami owner of one of the largest realty companies DB Realty whose CEO is cooling his heels in jail for the 2G Scam.The concerned minister is also involved in the Lavasa City Scam in which a whole city was built in partnership with HCC flouting all environmental norms and regulations.
June 30, 2011

Directorate General of Hydrocarbons (DGH) – Regulatory Capture by Big Indian Oil/Gas Companies,CBI files Case (V K Sibal),CAG finds Massive Corruption (Gold Plating Reliance)

Note Indian ministries and regulators have been found to be massively corrupt with the 2G Telecom Scandal facing the glare from the Supreme Court .Huge loss has been caused by ministers,corporate CEOs and various politicians a number of which are in jail right now.The CAG report had said that Reliance had doubled its cost in the KG-6 Basin leading to a huge loss for the Indian government.A number of other lapses (intentional) has been found by the DGH and the Ministry each time favoring the private oil and gas companies in India.Now the CBI has filed a case of corruption against the the former chief of the DGH V K Sibal for scuttling a probe by the Central Vigilance Commission (CVC) for showing undue favors to the private companies.Note India has been stuck by a number of scams in the stock market pertaining to mid cap and small caps.This has led to huge losses for investors with some companies like Reliance Telecom,Unitech having over 90% of their share values eroded.Reliance the biggest Indian company by market capitalization might be facing the same fate if the investigative agencies and the courts do their jobs.
June 21, 2011

India's Largest Company Reliance Stock Dives on Corruption collusion fears with Oil Regulator (DGH),Ministry in Season of Scams

Now India's Largest Company Reliance too has seen its stock fall to a post Lehman low on concerns that it has colluded with the Oil Regulator and Ministry to gold plate its costs in the KG 6 Gas concession.Reliance is India's biggest oil and gas company with interests throughout the supply chain.Note its nothing new as Reliance has always been known to be the most powerful corporate in India .However with the government's own auditing department CAG raising allegations of collusion and corruption,Reliance too may find itself snared in the corruption scandal.Note the infamous Nira Radia tapes had ample proof of how the powerful Reliance group manages the appointment of its favored persons in key federal ministries.The company must now by hoping that the Supreme Court which is already preoccupied with a ton of corruption cases does not take a keen interest and gets the CBI to investigate the allegations.
June 20, 2011

India sees a Flash Crash as Nifty crashes by 3% in 10 minutes as Mauritius might lose Tax Haven Status

The Indian Stock Market saw a flash crash on the morning of 20th June at 10 am.The market which started weak at 9 am fell by almost 3% in 10 minutes.The main index Nifty which was trading at around 5350 crashed to around 5200 in around 10 minutes.The market recovery by 1% but is again starting to go down to the low levels fo 5200 .Note the Indian stock market has been hammered due to worries on inflation,massive endemic corruption which is facing protests from the civil society.The FIIs which are the main buyers of Indian equities in the last year or so seem to have abandoned the Indian stocks as QE2 starts ending and global risks like Greece,US slowdown,inflation and interest rates worries in emerging markets come to the fore.Note Indian stock markets are not the easiest to invest in with scams and scandals happening regularly and it at best remains a market in which you have to choose between the bad and the ugly.
May 12, 2011

BJP finds it hard to fight Congress on Anti-Corruption as its own Ministers(Kalia,Swarna Ram,Yeddurappa) Indulge in Land Scams

BJP,the chief opposition party in India is finding it hard to fight the ruling party's widespread corruption as its leader are too compromised in land scams of their own.The Karnataka ministers of the BJP are known to be amongst the most corrupt in the country with the CM himself indulging in land scams along with his sons.The Bellary trio of Reddy brothers have amassed billions of dollars through plundering iron ore illegally and having literally bought the government in Karnataka for the BJP with their ill-gotten wealth.Karnataka’s Chief Minister has justified corruption as tradition and despite huge pressure to resign managed to survive due to unique caste politics of India .The Supreme Court has called the corruption in India “mind boggling” while the Chief Vigilance Officer had earlier called 30% of India’s population utterly corrupt.Now the BJP's ministers in the Punjab government have been accused of land scams in the state.Two of the BJP ministers Manoranjan Kalia and Swarna Ram have been implicated in a Land deal on the outskirts of Chandigarh.Kalia holds the industries and local bodies portfolio, Ram is social welfare and justice minister.
May 5, 2011

Tatas paid Rs 25 lakhs to Kanimozhi NGO (Bribe?) days before 2G Telecom Spectrum Allocation

The Tata Group which is known in India for high standards of corporate governance and doing business ethically in a country steeped in corruption too seems to have fallen.Ratan Tata appeared blemished as tapes of his conversations with the now disreputed corporate lobbyist Nira Radia were published in the media.He was caught at least listening and agreeing the the open manipulation of the Indian ministries in government formation if not the architect.Tata Teleservices which was a major beneficiary of the second round of 2G Telecom Auction during Raja's tenure has now again appeared in the news for the wrong reasons.Despite denials by the Tata Group honchos,the Tata companies seem to be complicit in the billion dollar scam that has shaken the political and business roots of India.
May 2, 2011

Lavasa A Township built on Sand – How the Politics-Business Nexus Colluded to give Birth to this Environmental Disaster

Lavasa is a story of corruption,looting of the poor and raping of the surrounding environment by the Indian politician-bureaucrat-businessmen nexus in a beautiful cover of a township built for the rich and well heeled.There is little concern for the law as these powerful developers know that they can get away with murder quite literally.The long term sustainability of the township is in doubt which defeats the entire purpose anyway.Any buyer of property in Lavasa should be aware of these problems and should not buy it as their investment will be eroded in the future anyway besides having the taint of being looted from the poor.However the media too has lost interest as a new scandal emerges everyday. Lavasa Township being constructed near Pune,Maharashtra has been in the media off and on for creating a environmental disaster in the shape of a beautiful township constructed on the hills.The town which has been constructed for 300,000 residents has violated all building and environmental norms of the state and centre.With powerful politicians and businessmen backing the project,its not as surprise that the state government of Maharashtra actively helped the township in bypassing all the laws and regulations.There is no provision for permanent water supply and it would lead to a clash between the water wants of Lavasa and Pune.Note builders in India are notorious for leaving out water and waste sustainability in their plans.The residents of the buildings,apartments and other shelters have to bear the brunt later on when there is no water and problems like waterlogging.Gurgaon the millenium township suffers from both of these problems quite acutely.Note these problems are common to both million dollar homes as well as slums in India.
April 25, 2011

India Corruption Cases(2G,CWG) – Scamsters get caught,charged (Kanimozhi,Kalmadi) but will the Big Fish be netted

India has lately become a nation known for endemic corruption rather than the world's poster growth boy with the ruling party members implicated in a number of corruption scams.With the government reluctant to take action against its own,the Supreme Court was forced to take over the supervision of the investigating agency CBI.In the first chargesheet top corporate honchos and CEOs were put under arrest alongwith the former telecom minister Raja and his cronies.With the ruling party under pressure from a civil society movement against corruption,the ability to manipulate the investigation process is limited.Not that the government is not trying put impediments in the court cases and top ministers and leaders indulging in character assassination of the eminent social activists like Santosh Hedge and others.This comes even as other chief ministers of the Congress like Gehlot get caught in nepotism.
April 22, 2011

Indian Politicians (Digvijay,Amar Singh) indulge in Character Assassination,Propaganda against Civil Rights Activists to stop Jan Lokpal Bill

Indian Politicians after being forced to bend against the popular support received by Anna Hazare and other civil rights activists in the recent fast unto death […]
April 19, 2011

Telecom Industry India – List of Telecom Companies in Crowded Market (Scams,3G,Competition,Subscribers)

The Indian telecom industry is the world's fastest growing industry with 792 million mobile phone subscribers as of February 2011. It is also the second largest telecommunication network in the world in terms of number of wireless connections after China. The industry will reach around $80 billion in revenues by next year showing an astounding CAGR of over 25% and will employ a stupendous 1 crore employees making it one of the biggest value creators in India in recent times.However the telecom companies in India after enjoying a boom period in the early 2000s have faced a couple of tough years with hypercompetition leading to a price war in auction of 3G spectrum.This was followed by one of the most high profile corruption scandals in the country which resulted in the jailing of the former telecom minister in the 2nd auction of 2G spectrum.Most of the telecom companies have been found to be implicated in colluding with sleazy politicians/bureaucrats in looting the Indian taxpayers.India Real Estate Sector is one of the most corrupt in the country and after the 2G Scam,the telecom sector is giving it close competition for the No.1 spot in corruption
April 15, 2011

Nira Radia reveals Sordid Corruption Nexus – DB Realty owned by Pawar,Tata Companies TCS,Tata Motors Bending Backwards in giving Favors to DMK Raja for Telecom License

Nira Radia the millionaire lobbyist who became a public figure overnight as tapes leaked to her phone conversations were printed by the mass media has revealed sordid details about the politician businessmen nexus.In the chargesheet presented by the CBI to the Supreme Court she has revealed the multi billion dollar realty company DB Realty is a front for Sharad Pawar and controlled by him.This hardly comes as a surprise as powerful Agri Minister Pawar has been linked to a number of corruption scandals like the Lavasa Scandal,2G Telecom Scam,IPL Scam etc.Note DB Realty CEO has been directly implicated in the transfer of bribe giving to Raja the former Telecom Minister in exchange for a Telecom License at dirt cheap prices.It is a tribute to the power of Pawar that despite such massive circumstantial evidence against him and his family,there has been no court case or police charges against him.Note a number of big companies in India are known to be secretly owned and controlled by powerful politicians.Not that politicians don't own billion dollar businesses openly and use their political muscle to further their own interests in a blatant manner.
April 8, 2011

Indian Government puts Hurdles in 2G Telecom Case Fails as Supreme Court orders Daily Hearings from April 13,Second Chargesheet on April 24

The Government of India has been trying to put hurdles in the 2G Telecom Scam case right from Day 1.Its blatant shielding of the rich and powerful involved in the massive billion dollar corruption involving ruling party alliance members and top corporate houses has been apparent.The proof of the government malintentions was India's top court taking over the supervision of the investigation agency CBI with itself.This was a major slap for the government as CBI falls under the authority of the Home Ministry.With the CBI having filed a chargesheet which names the former Telecom Minister Raja and some billionaire businessmen,the government is again trying its stalling tactics.The government and its repsentative lawyers did not agree to the name of U U Lalit as special public prosecutor.Additional Solicitor General (ASG) Indira Jaising raised objections despite K K Venugopal, who has been appearing on behalf of CBI and ED suggesting his name.
April 7, 2011

Democracy Wins – Indian Government Capitulates to Septuagenarian Hazare after 3 days of Death Fast – 1.5 kgs Lost,Support of Millions Gained

Seeing the rapidly mounting support for the movement,the government has tried to cut losses sending ministers to hold talks on ending the fast.Thousands of schoolchildren,executives,college students has spontaneously joined the Anti-Corruption Movement at Jantar Mantar in Delhi and millions more in different cities across India.It was the first real chance to protest against the endemic corruption and brazen arrogant behaviour of the ruling classes.Many politicians sensing the wind were trying to associate with Hazare.Shashi Tharoor the sauve face of modern India who had been discredited by his unethical conduct in IPL too tweeted that he supported Hazare ( don't know what that means,use your position to gain money unethically in IPL and Commonwealth Scams and support anti-corruption).For now its a success for the Indian democracy but the ultimate success will be when a strong Lokpal Bill is passed.
April 7, 2011

Anna Hazara Hunger Fast Draws Spontaneous Huge Indian Support,Govt Backfoot as Pawar resigns from GOM – Reflects Growing Anger against Corrupt Politicians

Anna Hazare the eminent social activist fast unto death may become a major turing point in India's history with massive spontaneous support for the Jan Lokpal Bill drafted by respected members of the Civil Society.The Ruling Congress Party which tried to disparage Hazare through usual political stunts like calling him a Opposition Party Puppet has become unhinged in its respone.While 2 days ago,the Congress Spokesperson Tewari was saying that they did not really care about the hunger fast by Hazare,now the Congress Ministers are rushing to placate him.While Kapil Sibal is calling for more time ( don't know what they did for the last one year when one after another scam was revealed),Moily says that changes will be incorporated.
April 6, 2011

Anna Hazare Deflates the Congress Ploy of Portraying Him as a Puppet,Says not to Insult His Intelligence

The Lok Janpal Bill has received a tremendous response from India's Civil Society which is totally fed up with the endemic corruption and a government which refuses to do anything as most of its ministers are caught in numerous scams themselves.One of its former ministers is already cooling his heels in Jail after India's Supreme Court was forced to take over the investigation as the government refused to take action.The Anti-Corruption Bill which has been formulated by eminent citizens and social activists has been rejected by the government (what a surprise) and the ruling party Congress has refused to talk.Here is a Guide and Summary of the Main Points of the Draft of the LokJanpal Bill.Instead the ruling party has brought in politics into the picture saying that Anna Hazare has become a puppet for the opposition.
April 5, 2011

What is Jan Lokpal Bill and How it Plugs the Giant Loopholes in Government Version LokPal Bill

India’s Civil Society has brought out the Jan Lokpal Bill that has been drafted has been drafted by eminent members of the civil society like Prashant […]
April 5, 2011

Jan LokPal Bill – Summary and Guide to India's Civil Society Anti-Corruption Bill Deserves Our Support

The Jan LokPal Bill is supposed to be the answer to India's massive endemic corruption which strikes daily in the form of a new scam or scandal.The government has proven to be woefully inadequate in taking on the corrupt politicians,bureaucrats and businessmen.This corrupt nexus has been repeatedly exposed and its structure exposed through the Nira Radia Tapes.The Indian administration has shamefully failed to take action only promising to do something without doing anything worthwhile.The Indian Judiciary has also castigated the government numerous times for its abject failure in the 2G Telecom Scam,Black Money Scandal etc.However the government instead of strengthening anti-corruption measures has only put obstacles in the way.Its no wonder when the committee meant to look after the Bill comprises of ministers tainted with a number of scams themselves.Anna Hazare has held a fast unto death to put pressure on the government to pass the draft bill but the Minister appear unconcerned.Here is a short summary and guide to the main points of the Jan LokPal Bill which IMHO deserves the support of the whole Indian civil society.
March 29, 2011

CBI 2G Telecom Scandal – Criminal Conspiracy,Cheating Charge against Essar,Reliance Communications;Will SC throw top executives in Jail like Raja

It remains to be seen whether the top corporate executives of India's topmost conglomerates get prosecuted over these wrongdoings.Essar and ADAG are amongst the top 10 conglomerates in India with wide ranging operations with billions of dollars in revenues nationally as well as internationally.The Supreme Court has been instrumental in bringing this case so far as the government seems totally coopted by corruption.It has been frequently been castigated by the Supreme Court and has shamelessly defended corrupt bureaucrats and politicians.It remains to be seen how this 2G Telecom Case ends.If justice is done,then it may provide a new chapter to India's corruption ridden story till now.
March 28, 2011

India's Supreme Court castigates ED for incompetence on Black Money Hasan Ali Hawala Corruption Case

India’s Supreme Court has become a schoolmaster for the errant Indian investigative agencies which keep showing glaring incompetence and reluctance to go after top offenders.The Indian […]
February 18, 2011

Pot Calls Kettle Black as Indian 2G Telecom Scam Accused ADAG Group blames Bear Cartel for Fall in Infra Stocks

Note it would not be surprising if the allegations were true as the Indian stock market is a pump and dump heaven of IPOs with blatant manipulation by market operators.Price Rigging Rings are also present with mid cap and small cap scams happening with an alarming regularity.With Corruption touching a new high,the Supreme Court has taken over the investigation of the Telecom Scam Probe from the Government.This has led the CBI which is mostly a ruling party puppet to question some top billionaires and politicians.However it remains to be seen if some of the top fish are caught or just some small scapegoats are imprisoned.
December 3, 2010

India's Big Business-Politics Unholy Alliance – Agricultural Minister Brazenly Supports Favored Corporates

Now the Agricultural Minister of India has come out brazenly batting for his favored corporate interests.It is openly known that Sharad Pawar is closely associated with the Lavasa City Project being built by HCC near Pune.The Company has criticized the Environment Minister for questioning the environment clearance.The Minister on the other hand wants to know why he was not consulted.Don't know how Agriculture expertise will help in deciding the environment clearance of a Realty Project.But in case of India's Business Elite anything goes it seems.Note the Agricultural Minister is said to be close business ally and played a prominent role in the recent cricketing scam as well.However as usual nothing came out of it as the politician-business unholy alliance brazenly runs the Indian government.