Scams and Scandals during the Congress rule since IndependenceIntroduction: Congress is synonymous of corruption and Mahatma Gandhi knew power will corrupt congressmen and had advised them to close down the party. Corruption like water flows from top to bottom, it degenerates the entire system. We have tried to list few major scams and scandals under Congress rule right from days of Nehru. 1. Congress Minister received bribe and Sardar Patel, then union Home Minister had ordered arrest of a minister of state for demanding and receiving a bribe. . R. First Finance Minister resigned.K. Shanmukham Chetty resigned for deleting the names of the companies (close to congress) from a list of companies to be investigated for tax evasion. Why? Independent India’s first finance minister.2. Why? Keshav Dev Malviya had to quit after it was discovered that he received bribe from dubious mine owners in Orissa. .3. Keshav Dev Malviya had to quit. which indicted Krishna Menon. . placed hefty order on dubious company of 4603 jeeps which were of poor quality and had landed long after the ceasefire had been signed. India’s High Commissioner to Britain. Krishna Menon.K. . Ananthasayanam Iyengar Committee submitted its report in 1951.Jeep Scam in 1947? When Pakistan attacked Kashmir.4. Instead of taking any action Nehru appointed him a Cabinet Minister without portfolio and later as defense Minister. .25000 for renewing a gem’s trader lease on Panna Diamond mines.5. Gems Graft in 1949 Rao Shiv Bahadur Singh. Industry Minister was caught finding bribe of Rs. A Venkatraman awarded entire import quota for cycle parts to single company with dubious record on instructions of his bosses in the cabinet.6. Cycle part Racket in 1951 Union Industry and commerce Secretary S. He was sentenced three years imprisonment. . 7. Krishnamachari then Finance minister tendered his resignation.T. pick up shares in his firms to boost their prices due to his proximity with then Finance Minister. 1 Crore. The Mundhra Rip-off in 1957 Kanpur entrepreneur Haridas Mundhra made LIC lend him Rs. but later on Nehru personally gave him clean chit and brought him back in cabinet. . Both were found guilty and T. 22 Crore government loan due to his proximity to Nehru. but escaped from custody and his whereabouts are still not known. Advance payment from customers went to his Liechtenstein bank account and he siphoned off entire money. The Teja Caper in 1962 Jayanti Dharma Teja set up a shipping company with paid up capital less than 200 and a Rs.8. . He was arrested in 1970 in London and sentenced to six years. 9. he was not arrested and on public pressure was just made to resign. . Kairon indicted by Daas commission in 1964 Kairon a close confidant of Nehru was inducted by Dass Commission for allowing family members to amass wealth through dubious ways. . 60 Lacks from the bank.We have discussed Nehru Era and Now we shall discuss Indira Era which broke all previous records. Nagarwala who was arrested died in police custody The episode remains a mystery & no enquiry was ordered in spite of seriousness of the issue. 10. The Nagarwala Scam in 1971 Former Army officer Rustom Sohrab Nagarwala was accussed of calling up state bank of India’s cashier faking Indira Gandhi’s voice & withdrawing Rs. MP working at the behest of Indira Gandhi’s closed aide Lalit Narayan Mishra. Mishra died in Samastipur bomb blast in1975 and since emergency was imposed.11. issue was quietly buried. The alleged forger was Tul Mohan Ram. Tul Mohan Ram Con in 1974 Pondicherry merchants submitted a petition with forged signatures of 21 MP’s to the Union Commerce Ministry seeking import licenses. . .12. Alleged use on animal tallow in Dalda The people of India were shocked when they came to know alleged use of animal tallow in Dalda. Several cases were instituted against the perpetrators of this heinous crime but to their closeness with Indira Gandhi they were set free. had allegedly collected Crore of rupees in the name of fictitious trusts involving the name of Indira Gandhi.13. The Cement Scam In the cement scam A. the then CM of Maharashtra. .R Antulay. Gandhi. Ultimately he was acquitted due to his closeness with Mrs. The Coal Scam of 80s This was one of the biggest scam since Independence which included N.14. Z.B. Ansari ran coal mafia with the active connivance of cabinet. .R. A.A Ghani Khan Chowdhury.L Wadhera.D Tiwari. They funneled off high grade coal from the collieries of public sector Coal India. with 2 Crore exchanging hands everyday said Coal India Chairman and MD B. Bundles of Scams and scandals one after the other a) Kuo Oil Deal b) Tripude marks Scams c) Westland Helicopters scandal d) Kosi Project Scandal e) Maruti Scam f) Fraud in Food Corporation of India g) Vasantrao Naik’s land reclamation Scam .15. .Bribe of 118 Crores When the order to buy planes from Jaguar was cancelled in favour of Mirage.Now we shall discuss post Indira Scams 16. 17. Jaguar had to pay 10% of the total cost of 1180 crores for the reversal of Government’s decision. The Submarine Scandal The irregularities in the HWD submarine deal involved illegal pay off of USD 30 million. The Jaguar Deal. 18. . 64 Crore Bofors Bribe Scandal in 1986 This is the scandal which lands right at the door steps of then PM Rajiv Gandhi and first family of Congress. Sonia was instrumental in facilitating his escape from India. Congress party has tried all dirty tricks to cover up this scam to save Sonia and her family members who are directly involved in this scam. Rs. Sonia and Late Rajiv Gandhi had helped Italian businessman Quattrocchi in receiving bribe in Bofors purchase and had also helped him in getting large number of contracts in Power & fertilizers besides defense deal. 3000 Crore Public Accounts Committee had indicted the government on the disinvestment of PSU. . the special court investigating into Rs. The Securities Scam of Rs. 5. Harshad Mehta. 20.1997.10. PSU Disinvestment of Rs. 5000 Crore in 1992 According to Tribune dated 2.19. two employees of Maruti Udyog and two of ANZ Grindlays and UCO bank.000 Crore securities scandal of 1992 had approved the 34 charges submitted by CBI against big bull. PSU suffered loss of 3000 Crore in the process. E Pinto.21. Urea Scam of 133 Crore A. Son of then PM a congressman is main accused. That’s what Congress Knows Best . Mr. the London based Brazilian broker. who represented the Urea Scam tainted Turkish Firm Karsan signed a deal with the Public sector National Fertilizers Limited (NFL) in July 1995 for Urea Supply. Prabakar Rao. Dhoti Scam of Rs. in which entire amount of 133 crore was paid in advance by NFL for the supply of two lakh tonnes of Urea which never reached India. 200 Crore 22.Pinto is charged with having received a total amount of 7 lakh US Dollars from Swiss bank accounts. 000 Crore . 25 Telecom Scam of 1. 5000 Crore 27.K Thungan fraudly encashed bank draft of 9. Oil Fields Scam of Rs. letter of Credit scam.68 Crore 26. Rs. Stock Scam of Rs.23. of 240 Crore 24. 6. Union Minister P.98 Lakh. 5000 Crore Scam of Medical Equipments Import 28. 29. Rs. 5000 crore Scam of Railways Contracts Then Railway Minister and Congress leader C.K. Jaffer Sharief and other senior officers of ministry are involved in an illegal gauge conversion contracts. 30. Rs. 400 Crore land scandal in Ranchi (Bihar) 31. CRB scam of 1000 crores 32. Congress government loaned Rs. 45000 Crore to black listed companies. These companies were black listed by RBI. (source free press journal 26.9.1996). Total of 3973 frauds were registered but nothing has moved since then. 33. Rs. 2000 Crore Nagaland Lottery Scandal 34. The Gold Star Securities Scam of 8000 Crores 35. The St. Kitts Scandal- Crime of forgery 36. JMM Case of Bribery 37. Shri Rao was accused of receiving 1 Crore 38. The Hawala Scandal 39. Petrol Pumps allotments to Kins of Rao 40. Sheila Kaul indicted in housing scam Sheila Kaul was indicted in housing scam, when she was urban development minister. She quit as Himachal Pradesh Governor. The supreme court imposed exemplary fine of Rs. 60 lakh as damages caused to the exchequer Recovery of Crores of Rupees from Sukh Ram’s House Shri Sukh Ram was arrested after CBI raid on his house led to recovery of crores of rupees. only to be let off later. . Jagdish Tytler’s as surface transport minister.41. Madhav Singh Solanki Interference in Bofors Probe 43. 42. did several undue favors to his close associate by illegally allotting land worth of crores of Rupees belonging to Bombay Port Trust. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. 8. Fake / Stolen Bank deposits Scam. Assam NREGA funds misappropriation scam. N C Hills Scam : Assam Subsidy (Transport) Scam : Assam Irrigation Scam :Assam Guwahati Municipal Corporation Scam : Assam Guwahati Urban Development (JNURM) Scam : Assam Police Constable Recruitment Scam: Assam Teachers Appointments Scam: Assam National Highway Scam: Assam PDS Scam of Rs 1000 crore: Assam Flood Control Scam: Assam Fake/Fraudulent payments scam.150Cr Fraudulent Bank deposit scam. Assam Rural development fund embezzlement. Sikkim 32. 17. Arunachal Public Private Partnership scam. 14. Big Dam / Irrigation Scam: Mizoram 46. 18.Major Scams of North East 1. Fraudulent fire to declare burning of 25. 4. 2. Assam SGRY funds scam. Sikkim 41. 7. Nagaland . Rajiv Gandhi Vidyutikaran Scam. Sikkim 28. 24. 21. Sikkim 34. 22. 15. NREGA scam. Arunachal NREGA scam. Cement Land Scam: Meghalaya 47. Smuggling of red sandalwood to China. TB Medicine Scam. Rs. 19. Sikkim Scam of Nayuma Cable (NC). Nagaland 50. 12. Arunachal Siphoning of Entertainment Tax. 11. 23. 20. Sikkim 38. 10. 16. Nagaland 49. Kanchandzonga Tourist Villa Scam. Sikkim 40. Sikkim 39. Road Construction Scam: Manipur 45. Rural Infrastructure Development Fund scam. Assam Hydro Power Scam :Arunachal SGRY Scam : Arunachal PDS Scam of Rs 1000 Cr: Arunachal Mines & Mineral Allotment Scam : Arunachal Drinking Water Mission Scam: Arunachal Hydro Power projects scam. Sikkim 27. Sikkim 42. NREGA scam. 13. 5. Ranka Tourist Villa Scam . 25. Sikkim 35. Sikkim Khadi Board Fraud. 3. Sikkim 26. Sikkim Power Development Corporation scam. Pradhan Mantri Gram Sadak Yojana Scam. 9. Sikkim 37. Loktak Lake Cleaning Scam: Manipur 43. Teachers Appointment Scam: Manipur 44. PDS scam. SGRY Scam. Midday meal scam. Sikkim 31. Sikkim 36.000 shows meant for poor children. Hydel power scam. AIBP scam. Sikkim 30. Arunachal PDS Scam. Sikkim 29. Sikkim 33. North-East Subsidy Scam 48. Vision .