SP MG
EA DE
K VA
OU SA
p3 T, HA
4
M YAM
OD
I!

EXPOSÉ WHEN WILL ACTION BE TAKEN
AGAINST JIGNESH SHAH? p28

December 10, 20...
From the Editor

A

vol. 7,

ISSUE 9 | December 2013

Anil Tyagi | editor
TR Ramachandran | executive editor
Niranjan Desa...
CONTENTS
6 Bric-a-Brac

LETTERS
editor@gfilesindia.com

polls & roles

10 Cover Story

governance awards: gfiles recognise...
www.indianbuzz.com

gfiles inside th government
gfiles inside the government
f es s
e
t
the

vol
vol
vol. issue
vol. 7, is...
Bric-a-brac
polls & roles

PC for Puducherry

eyes seat shift from shivganga

I

T seems the south of the country is
going...
INSIDE EYE

ILLUSTRATIONS: ARUNA

Bahuguna’s days numbered
winds of change in uttarakhand

V

IJAY Bahuguna is fortunate t...
Bric-a-brac
polls & roles

Telangana imbroglio
congress in catch-22 position

T

HE Telangana issue is driving Andhra Prad...
(A Government of India Enterprise)

Power Transmission

ince its inception, EPI has been
committed to providing the best
p...
COVER STORY

awards good governance

WORK IS
The second annual
Governance Awards of
gfiles was an occasion
to inspire thou...
WORSHIP
projects without time and cost overruns and innovate to add to the
national exchequer.
The second annual Governanc...
COVER STORY

awards good governance

five-member independent jury, which
enjoys an unmatched and impeccable
track record a...
Lifetime Achievement Award

Satish Kumar, Advisor, DMRC, receives the award
from TKA Nair on behalf of Elattuvalapil
Sreed...
COVER STORY

awards good governance

Exceptional Contribution Award

Prabhat Kumar and TKA Nair (centre) giving the award
...
www.indianbuzz.com

gfiles inside the government

vol. 7, issue 9 | December 2013

15
COVER STORY

awards good governance

Exceptional Contribution Award

Slovenian Ambassador Darja Bavdez Kuret gives the
awa...
www.indianbuzz.com

gfiles inside the government

vol. 7, issue 9 | December 2013

17
COVER STORY

awards good governance

Exceptional Contribution Award

Minister Councellor-DCM, Syria, Wael Deirki gives the...
GROUP
HOUSING
PROJECT
For Civil Servants
“Commonwealth Co-operative Group Housing Society
Ltd” has been formed by a group ...
COVER STORY

awards good governance

Excellent Contribution Award

Prabhat Kumar and TKA Nair watch as Ashwani Lohani
rece...
www.indianbuzz.com

gfiles inside the government

vol. 7, issue 9 | December 2013

21
COVER STORY

awards good governance

Excellent Contribution Award

TKA Nair congratulates Atul N Patney as Prabhat Kumar
a...
Indrox Global Pvt. Ltd (IGPL)
“POLLUTION ABATEMENT PLANT”

“
Maintenance of Acid regeneration plant (ARP) and Iron oxide p...
COVER STORY

awards good governance

Excellent Contribution Award

Shekhar Dutt gives the award to Jayesh Ranjan with
TKA ...
www.indianbuzz.com

gfiles inside the government

vol. 7, issue 9 | December 2013

25
COVER STORY

awards good governance

Excellent Contribution Award

Additional Secretary, Agriculture, Dalip Singh receives...
www.indianbuzz.com

gfiles inside the government

vol. 7, issue 9 | December 2013

27
EXPOSÉ
nsel scam

Operation
Cover-Up
It has been almost six months
since the National Spot
Exchange (NSEL) operations
were...
five of its Directors—CM Maniar, N
Balasubramanian, R Devarajan, PR
Barpande and TC Nair quit in quick
succession. When Pa...
EXPOSÉ
nsel scam

pumped in a part of this money to
acquire 100 per cent stake in Akshaj
Ventures Singapore Pte Ltd, origi...
www.indianbuzz.com

gfiles inside the government

vol. 7, issue 9 | December 2013

31
EXPOSÉ
nsel scam

Jignesh Shah (centre) had many
charmed before the Rs 5,600-crore NSEL
scam was revealed

a recent RBI ci...
ind

c

ia.

ind

.co

m

m

.co

m

co

ia.

ind

dia

in ia
om
ind ia.c m
ind .co

ia
om
ind .c
dia om
www.indianbuzz.co...
GOVERNANCE

agenda mg devasahayam

Wish list for
the wannabe

Prime Minister!
While Narendra Modi is creating an impact as...
election. I have been witness to this.
What has also impressed the public is
his composure and demeanour while
addressing ...
GOVERNANCE

agenda mg devasahayam

disaster resulting in neighbouring
countries, including tiny Sri Lanka,
humiliating us;...
Thank you

SAIL

for making

GOVERNANCE
AWARDS

www.indianbuzz.com

2013
A Success

gfiles inside the government

vol. 7, ...
GOVERNANCE
corruption tn pandey

BLACK MONEY
No will, no way

A

FTER considerable heat in the
past regarding undisclosed
...
cent, or sometimes even 40 per cent,
of the value determined and paid for
the sale of the land and properties.
Regretfully...
GOVERNANCE
corruption tn pandey

unaccounted money invested in this
sector. Measures taken in the past
under the IT Act, n...
www.indianbuzz.com

gfiles inside the government

vol. 7, issue 9 | December 2013

41
FIRST STIRRINGS
sunil patnaik

by SHAILAJA CHANDRA

I

had heard of civil servants doing
extraordinary things, but becomin...
from worldly life.
After completing a Master’s from
Allahabad University, his older brother had suggested that he should t...
FIRST STIRRINGS
sunil patnaik

the vice-president of the Divine Life
Society. When he was younger, he
served the Ashram by...
Swami Nirliptananda giving a
discourse to devotees

offerings and can use them for personal expenses. I travel to many cou...
TALKTIME

parliament devender singh

Parliamentary committees

Sentinels of
accountability
B

y the very nature of its com...
-

-

What are the powers and
privileges of Parliamentary
committees? Can a committee
force attendance of a witness
and pu...
TALKTIME

parliament devender singh

A file photo of the Public Accounts Committee (PAC) in session, under the chairmanshi...
Gfiles dec 2013
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Gfiles dec 2013

  1. 1. SP MG EA DE K VA OU SA p3 T, HA 4 M YAM OD I! EXPOSÉ WHEN WILL ACTION BE TAKEN AGAINST JIGNESH SHAH? p28 December 10, 2013 VOL. 7, ISSUE 9 SUNIL PATNAIK: IAS TO ASHRAM FIRST STIRRINGS p42 gfilesindia.com GOVERNANCE AWARDS 2013 New Paradigms
  2. 2. From the Editor A vol. 7, ISSUE 9 | December 2013 Anil Tyagi | editor TR Ramachandran | executive editor Niranjan Desai | roving editor GS Sood | consulting business editor Rakesh Bhardwaj | editorial consultant Arvind Tiwari | director, business development Naresh Minocha | associate editor Neeraj Mahajan | associate editor Alok Jain | coordinator (maharashtra) Ajit Ujjainkar | bureau chief (mumbai) Harishchandra Bhat | associate editor (bengaluru) Venugopalan | bureau chief (bengaluru) Kh Manglembi Devi | editorial coordinator Mayank Awasthi | reporter Pawan Kumar | production coordinator Sumer Singh | assistant manager, logistics Nipun Jain | finance Gautam Das | legal consultant Crossmedia Solutions | edit & design Taran Tejpal Singh | Webmaster (Design) Dipanshu Gupta | Webmaster (Programmer) advertising & marketing adv@gfilesindia.com U K SHARMA— +919717588883 e-mail: uksharma@gfilesindia.in RAKESH ARORA— +919810648809 SAKSHAY PAHUJA— +918527006688 e-mail: adv@gfilesindia.com mumbai: 48/C-1, Areshwar, Mhada, S.V.P. Nagar, Andheri(W), Mumbai 400 053 bengaluru: 2210, 10b main road, 3 block, jayanagar, bengaluru 560 011 CONTACT — +91 9845730298 e-mail: venu@gfilesindia.in +All information in gfiles is obtained from sources that the management considers reliable, and is disseminated to readers without any responsibility on our part. Any opinions or views on any contemporary or past topics, issues or developments expressed by third parties, whether in abstract or in interviews, are not necessarily shared by us. Copyright exclusively with Sarvashrestha Media Pvt. Ltd. All rights reserved throughout the world. Reproduction of any material of this magazine in whole, or in part(s), in any manner, without prior permission, is totally prohibited. The publisher accepts no responsibility for any material lost or damaged in transit. The publisher reserves the right to refuse, withdraw or otherwise deal with any advertisement without explanation. All advertisements must comply with the Indian Advertisements Code. Published and printed by Anil Tyagi on behalf of Sarvashrestha Media Pvt. Ltd at Kala Jyothi Process Pvt Ltd. E-125, Site-B, Surajpur Ind. Area, Gautam Budh Nagar, Greater Noida-201306 U.P. (INDIA). All disputes are subject to the exclusive jurisdiction of competent courts in New Delhi only S 2013 ends on a positive note, bringing a breath of fresh air politically to India, it is too early to predict what will happen in 2014. But one thing is certain–it will be a remarkable year in our political history. It does not matter who captures ‘Delhi’ in the parliamentary elections of 2014; it appears the politics of India will not remain bipolar and will only become multi-polar. The elections will be very decisive, putting an end to collusion and back-scratching of political parties and leaders. The Delhi Assembly election results showed how the Aam Admi Party (AAP) has opened a new window for those who would have otherwise kept on voting for either the Congress or BJP. How the AAP will take forward the sentiment of the common man no one knows, but it seems the common man has possibly made up his mind to get rid of traditional political parties and their leaders. The poorest and the youth have taken the lead and turned the tide for a possible political change. The Delhi mandate is a fractured one and a confusing one for all political parties. Had the AAP vote bank had any idea of its sheer numbers, I am sure the BJP too would have been wiped off Delhi’s political map. The five State Assembly elections have disseminated another valuable lesson to all political parties–that there is no loyal and constant vote bank available to them. Rajasthan is a glaring example where all AJGAR (Ahir, Jat, Gujjar, Rajput) voters shifted to the BJP. Ashok Gehlot did not have an explanation; irrespective of good work, people did not vote for him. In Madhya Pradesh, the Congress has to do some rethinking. This is Shivraj Singh Chauhan’s victory, no doubt, but it is even more a reflection of Congress’ mismanagement. It has created a mess in the State, even being unable to decide until the end who would lead it. Even chief ministerial candidate Jyotiraditya Scindia’s citadel of Gwalior fell to the BJP. The saffron party swept all five regions–Madhya Bharat, Mahakaushal, Vindhya Pradesh, Bundelkhand and Bhopal. It is incumbent on the Congress to decide clearly how long Digvijay Singh will be allowed to drive Madhya Pradesh. Meanwhile, Chhattisgarh’s mandate is a vindication of Raman Singh’s good work. He fought a tough battle, but finally came out victorious. Even the death of veteran Congressman Vidya Charan Shukla and Mahendra Karma could not help the Congress. It is unfathomable how business houses in Chhattisgarh can carry on their activities in naxalite-infested areas whereas the government cannot work even to provide basic amenities to locals. This is the biggest challenge for Raman Singh. On the other hand, Ajit Jogi and son Amit Jogi have to start afresh in the State. The duo of Rahul Gandhi and CP Joshi took a personal initiative to place their trust in Ajit Jogi, going against the resentment of the local Congress leadership. Congress now has to re-strategise its plan in Chhattisgarh. At the same time, it is not a very happy situation for Narendra Modi and his supporters within the BJP. I am of the opinion that the results would have been the same in MP, Chhattisgarh and Rajasthan, even if Modi had not been on the national horizon. The voters of these three States voted for their local heroes, not Modi. It was not a mandate geared towards national politics. The five Assembly elections are a clarion call to all stakeholders in the Indian social and political arena to wake up for building a new India in 2014, more strong, vibrant and agile than ever before. It will be a fitting reply to those who do not have the trust in the wisdom of the common man. ANIL TYAGI editor@gfilesindia.com Download the gfiles app www.indianbuzz.com gfiles inside the government vol. 7, issue 9 | December 2013 3
  3. 3. CONTENTS 6 Bric-a-Brac LETTERS editor@gfilesindia.com polls & roles 10 Cover Story governance awards: gfiles recognises innovation and commitment GOVERNANCE MG DEVASAHAYAM ON VK SINGH p20 YOGENDRA NARAIN ON RULES OF BUSINESS p26 November 5, 2013 VOL. 8, ISSUE 7 EXPOSÉ LAND SHARKS IN GURGAON p16 28 Exposé jignesh shah hides behind lawyers gfilesindia.com d 34 Governance modi’s missing agenda 42 First Stirrings ias officer turns monk 46 Talktime let parliamentary committees function 49 Book Review beyond management jargon 50 Initiative seminar with an edge 52 inculcating values 54 My Corner watch your words 56 Initiative EQ differs by profession 58 Stock Doctor watch mid-cap stocks 64 Perspective essence of time 65 By the Way poll woes, workstyles and more NO ONE DARE ARREST JIGNESH SHAH! The case of VK SIngh FI RAT RS H T IKA ST N T p3 IR BA 6 RI S NG U S 38 black money still abroad Action required Your cover story ‘Living Dangerously’ (gfiles, November 2013) makes apparent the collusion between the powers that be and NSEL scam kingpin Jignesh Shah. There can be no other explanation as to why he is not behind bars as yet. I still recall the furore over the Harshad Mehta scam in the early nineties, and the NSEL fraud is not a patch on that. Furthermore, the spot exchange scam has eroded investor confidence in the online trading system. This is likely to take a long time to recover. Many small investors are now shying away from online trading. As your story revealed, the areas of fraud are multiple. This is a big blow to investors’ confidence in the market, which is already weak and going down by the day. It is time that the authorities take strict action against the perpetrators of NSEL scam or else few will believe in the impartiality of law. S Patel via email Your cover story on NSEL scam shows the depths our system of governance has sunk to. Here is a man whose misdeeds are out there in the open and yet the authorities shy away from taking any action against him. Many 4 gfiles inside the government vol. 7, issue 9 | December 2013 investors would have put their hardearned money into the spot exchange run by Jignesh Shah and his cohorts. Only his arrest will set an example to other fraudsters and make them think before any wrongdoing. C Anant via email Thank you (‘VeekaySinghmania’ by MG Devasahayam, gfiles, November 2013) for putting across the sequence of events so succinctly. The words of a politician—any politician—cannot weigh against that of a soldier ever. It is the soldier who is willing to lay down his life for the country. It shows the silliness and unthinking nature of Indian people that they indulge in selfish politics with gay abandon, rather than demanding and obeying the rule of law. Manoj Khare on blog An excellent article highlighting the injustice meted out to one of India’s top soldiers. Shame on the government of Manmohan Singh and his chamchas. Ram Ohri on blog Exposing land deals The article ‘Where land sharks rule’ has successfully exposed largescale corruption in land deals in Gurgaon. Please carry on the good work. KS Sandhu on blog Gurgaon is a hot bed of corruption as far as land deals are concerned. I am glad a magazine of your repute is taking note of this serious issue and giving it the attention it deserves. The black money involved in such deals runs into huge amounts. Only if the media acts like a watchdog will the corrupt get wary and desist from continuing with their shady deals. R Menon via email www.gfilesindia.com
  4. 4. www.indianbuzz.com gfiles inside th government gfiles inside the government f es s e t the vol vol vol. issue vol. 7, issue 9 | December 2013 o issu ssue ssu ss December D 5
  5. 5. Bric-a-brac polls & roles PC for Puducherry eyes seat shift from shivganga I T seems the south of the country is going to be a headache for the Congress, and especially for Union Finance Minister Chidambaram Palaniappan, during next year’s general election. The grapevine says Chidambaram might shift from his parliamentary constituency of Shivganga to Puducherry. Apparently, he wants to avoid being once again in the tricky situation he was in during the 2009 elections, when Shivganga had posed a tough battle for him. This time, PC is in no mood to hazard a risk in a post-Manmohan Singh scenario as he could likely be the prime ministerial candidate if Rahul Gandhi declines the post in the event of a narrow majority or a hung parliament. Chennai sources say Chidambaram has assigned a market agency to study Puducherry and pinpoint projects which can be initiated much before the election. Complicating the issue is the fact that GK Vasan, son of late Congress stalwart GK Moopanar, is the president of the Tamil Nadu Congress Party and Chidambaram has been at loggerheads with him for long. PC’s son, Karthik, has sent feelers to the Puducherry Congress Committee leaders on his father’s candidature. It remains to be seen whether V Narayanasamy, the Congress MP from Puducherry and a Cabinet minister, will relinquish the seat. He has powerful connections and is also a follower of a powerful Congressman (who belongs to a different camp and may not like PC’s shift from Shivganga to Puducherry). A fierce battle is on the cards. g Haryana in Hooda’s fist cm may prepone polls H ARYANA Chief Minister Bhupinder Singh Hooda is on a roll. It is unprecedented that, in the run-up to elections (assembly elections are due in October 2014), there is little or no opposition to the ruling party. Also, even within his party, there is no one to challenge his leadership. And it seems he is eager to strike while the iron is hot. Rumour is rife that Hooda may prepone the polls and hold them alongside the general election. He is particularly upbeat after the Gohana rally in November. Aides have told him that none else in the Congress can collect such a massive crowd. The party’s top leadership too has noted Hooda’s growing popularity. During Diwali, his public relations machinery was in top gear, targetting every Congress leader connected in any way with party affairs in Haryana. Employees at the Congress party headquarters were amused by the generosity of their chief minister who gifted them suit lengths for Diwali. No one knows what was gifted to those leaders who are in charge of Congress-ruled States and deal with the Chief Minister on a daily basis. Anyway, it was a damn good PR exercise, Mr Hooda! g 6 gfiles inside the government vol. 7, issue 9 | December 2013 www.gfilesindia.com
  6. 6. INSIDE EYE ILLUSTRATIONS: ARUNA Bahuguna’s days numbered winds of change in uttarakhand V IJAY Bahuguna is fortunate to have survived so long as Chief Minister of Uttarakhand. He has neither a mass base nor MLAs backing him. In the summer, he was perceived to have failed in handling the floods. Another shock was son Saket Bahuguna losing the Tehri parliamentary byelection to Mala Rajyalakshmi Shah of the BJP in October. Sources say the Congress leadership is inclined towards replacing him. Three leaders are contenders for the post— Harish Rawat, Minister for Water Resources, Satpal Maharaj, and Indira Hridayesh, Finance Minister. Hridayesh is the front-runner and was summoned by the high command last month. The change of chief minister is likely to take place after the Assembly election results. Wait to see who wins—a Thakur or a Brahmin. g www.indianbuzz.com gfiles inside the government vol. 7, issue 9 | December 2013 7
  7. 7. Bric-a-brac polls & roles Telangana imbroglio congress in catch-22 position T HE Telangana issue is driving Andhra Pradesh politicians crazy. Seema Andhra politicians are reading the writing on the wall while the Congress finds itself in a Catch-22 situation. If Andhra Pradesh remains united, the Congress is likely to be wiped out in the State. But if it is divided, there may be some consolation for the party. Sonia Gandhi has assigned P Chidambaram and Home Minister Sushil Kumar Shinde to handle the problem while Jairam Ramesh and S Jaipal Reddy are the interlocutors within the party to sound out every stakeholder. Meetings are being held day and night of those who are pro- and anti-Telangana. Senior Cabinet Ministers seeking to meet Sonia are instead told to meet Chidambaram or Shinde. Chief Minister Kiran Reddy has suggested that the Congress should take the position that it is ready to create Telangana if the Assembly passes a resolution favouring bifurcation of the State. It would thus save face. But, say sources, there were no takers for this argument in the party. A Cabinet Minister from Andhra Pradesh is so unhappy that he has tried to get an appointment with Congress vice-president Rahul Gandhi for two months. No one is heeding his requests as Rahul is occupied with electioneering. Now there are serious murmurs growing within the Congress, and the coming days will tell what shape this undercurrent will take. g 8 gfiles inside the government vol. 7, issue 9 | December 2013 www.gfilesindia.com
  8. 8. (A Government of India Enterprise) Power Transmission ince its inception, EPI has been committed to providing the best project management service through its dedicated and highly experienced team of personnel for a variety of multi-disciplinary projects. During the last 4 years, EPI has been engaged in the field of execution of large and multi-disciplinary industrial and construction projects on turnkey basis and project consultancy services in India and abroad. EPI’s areas of operations are spread across the following projects: ■ Civil and Infrastructure ■ Water Supply and Environmental Engineering ■ Material Handling ■ Metallurgical ■ Industrial and Process Plants ■ Oil and Petrochemical S Road Projects Grain Silos Water Treatment Plant EPI has contributed immensely in the advancement of the nation and the company is presently focusing on high technology, consultancy and high value projects. The company is re-establishing its activities in the overseas market. EPI has also diversified in the following sectors: ■ Mass Rapid Transit System ■ Renewable Energy EPI is a uniquely integrated engineering company capable of undertaking projects from the concept to commissioning and performs the following: ■ Feasibility Studies and Detailed Project Reports ■ Design and Engineering ■ Supply of Plant & Equipment ■ Quality Assurance ■ Project Construction ■ Erection and Commissioning ■ Operation and Maintenance ■ Overall Project Management in almost all areas of engineering and construction domain EPI’s composition and character makes it ideally suited to take up execution of large and complex construction projects in a wide spectrum of industries. Most of EPI personnel have grown up with the organisation and have considerable experience. Its engineers possess vast knowledge and experience in various disciplines like civil, mechanical, electrical, chemical, instrumentation and other engineering disciplines. Mass Rapid Transit System HOUSING COMPLEX, SURYANAGAR, BANGALORE www.indianbuzz.com Airports gfiles inside the government vol. 7, issue 9 | December 2013 9
  9. 9. COVER STORY awards good governance WORK IS The second annual Governance Awards of gfiles was an occasion to inspire thousands of unsung public servants to use innovation to multiply public resources 10 gfiles inside the government vol. 7, issue 9 | December 2013 by NARENDRA KAUSHIK I T is not every day that the ‘muchmaligned’ steel frame of India gets an opportunity to celebrate. It is not every day that the minority of the ‘faceless and anonymous’ civil servants, who refuse to be partners in crime with the powers-that-be, who question the Maoists ruling the roost in the so-called red corridor of India and who become gamechangers by providing succour to the poorest of the poor, disadvantaged and the weakest sections of society in India, are recognised and acknowledged. It is also not every day that the media, which treats bad news as good business and pillories babudom for the various ills and lacunae prevailing across India’s length and breadth, honours the ones who put service before self in working for the aam aadmi, set examples by executing lifeline www.gfilesindia.com
  10. 10. WORSHIP projects without time and cost overruns and innovate to add to the national exchequer. The second annual Governance Awards of gfiles, leader of the media segment reporting on governance and bureaucracy in the country, on November 30 at India International Centre (IIC), New Delhi, was an occasion which will inspire thousands of unsung engineers, district collectors/magistrates and police officials www.indianbuzz.com to reach out to the deprived, seeking their participation in governance and policy-making and using innovation to multiply public resources. The occasion, graced by serving and retired bureaucrats such as TKA Nair, Principal Adviser to the Prime Minister, Shekhar Dutt, Governor of Jharkhand, former Cabinet Secretary Prabhat Kumar and former Chief Information Commissioner Wajahat Habibullah, who are admired and PHOTOS: RAJEEV TYAGI looked up to for their honesty, integrity and fairness, conferred the lifetime achievement award on Dr E Sreedharan (who could not be present due to ill health), better known as India’s Metro Man, and seven other civil servants for exceptional contribution in their respective fields of work. Diplomats from at least four major countries were also in attendance. The eight awardees were chosen through a meticulous process by a gfiles inside the government vol. 7, issue 9 | December 2013 11
  11. 11. COVER STORY awards good governance five-member independent jury, which enjoys an unmatched and impeccable track record and is backed by the credibility and goodwill of gfiles. Headed by Prabhat Kumar, the jury panel comprised former Power Secretary Anil Razdan, former Chief Secretary of Haryana Vishnu Bhagwan, former Secretary (Internal Security) MB Kaushal and former Chairman and Managing Director of IDBI Bank RM Malla. A PART from Sreedharan, who is responsible for building some of the largest infrastructure projects of modern India, including the Delhi Metro and the Konkan Railway, the awardees included Abhayanand, a 1977-batch IPS officer and current Bihar Director General of Police, who is considered the brain behind speedy trial and conviction of criminals in the state, JS Deepak, a 1982-batch Uttar Pradesh cadre IAS officer, who is credited with scripting one of the most successful and highest revenue generating e-auctions, of the 3G spectrum in 2010, and Dr Amarjit Singh, a 1982batch Gujarat-cadre IAS officer, who co-opted private obstetricians into the public delivery system and initiated a very successful Chiranjeevi Yojana in April 2005 after seeing a pregnant woman being carried on a pole by two villagers. Jayesh Ranjan, a 1992-batch AP IAS officer and present CMD of the Andhra Pradesh Industrial Infrastructure Corporation, was awarded for implementing the Andhra Pradesh District Poverty Initiative Project (APDPIP) in 2000 and thus mobilising around a crore of people afflicted by extreme poverty through community organisations. Atul N Patney, a young Maharashtracadre IAS officer, received an award for using IT to improve the health 12 gfiles inside the government vol. 7, issue 9 | December 2013 Wajahat Habibullah, Pankaj Pachauri and TKA Nair at the awards function infrastructure and quality education through the E-Vidya Project in Naxalite-affected Gadchiroli district in the State. Ashwani Lohani, a 1980batch Indian Railway Service officer, was, on the other hand, conferred an award for facilitating a turnaround in the Indian Tourism Development Corporation (ITDC) and Madhya Pradesh State Tourism Development Corporation. The 1973-batch Tamil Nadu-cadre IAS officer, Santha Sheela Nair, received an award for raising the water level through mandatory water harvesting in Tamil Nadu. Deepak, Singh and Abhayanand were honoured with the Exceptional Contribution Awards. Ranjan, Patney, Lohani and Nair, on the other hand, were recipients of the Excellent Contribution Awards. Awards to inspire excellence While admitting the existence of some ‘flawed specimen with misplaced priorities’ in the Indian civil services and commending gfiles’ Governance Awards, Prabhat Kumar pointed out that there were tens of thousands of other civil servants doing their services in the best tradition. He felt that, after October 2005 (Supreme Court pro- nouncements in the 2G case), bureaucrats had become ‘scared to speak out’. Kumar is part of the IC Centre of Governance, a non-profit educational trust which documents and shares best practices. He knows that, despite all impediments, civil servants have stories of ‘courage, conviction, compassion and innovation’. Lohani felt the award will give him ‘the energy and the motivation’ to continue on a fast trajectory for the rest of his career (five-plus years). Jayesh Ranjan was happy to be recognised by people ‘who are still my role models’. He was sure the award would ‘strengthen his determination to do more and more and rise to the best of (his) abilities’. Singh was of the view that there was a need to capitalise on the huge amount of resources available outside the government. Deepak felt assured that his principal design and technology of e-auction would be replicated in future auctions by the government. He felt the award would give a fillip to good work. In her closing remarks, Nair said that the awards would make up for the lack of motivation, which was one of the root causes of underperformance in the administrative services. g www.gfilesindia.com
  12. 12. Lifetime Achievement Award Satish Kumar, Advisor, DMRC, receives the award from TKA Nair on behalf of Elattuvalapil Sreedharan (inset) Elattuvalapil Sreedharan Principal Advisor, DMRC For building some of independent India’s largest infrastructure projects without time and cost overruns, while working for the government www.indianbuzz.com P OPULARLY known as the ‘Metro man’, Dr Elattuvalapil Sreedharan is credited with beginning work on the country’s first Metro in Calcutta way back in 1970 as Deputy Chief Engineer. A civil engineer, he started his career as a lecturer at the Government Polytechnic, Kozhikode, and worked as an apprentice at Bombay Port Trust for a year. Later, he joined the Indian Railways. In 1963, a cyclone washed away parts of Pamban Bridge that connected Rameswaram to mainland Tamil Nadu. Sreedharan restored the bridge in 46 days, as against the target of six months set by the Railways, and was conferred the Railway Minister’s award. It was under his chairmanship that the Cochin Shipyard launched Rani Padmini, the first ship it built. He retired from Indian Railways as Member Engineering in 1990 but, recognising his outstanding calibre, the government appointed him CMD of Konkan Railway. Under his stewardship, the first major project was undertaken on a BOT (Build-OperateTransfer) basis with an organisational structure that veered from a typical Indian Railways setup. The project had 93 tunnels over 82 km and involved tunnelling through soft soil. It covered a length of 760 km and had over 150 bridges. That a public sector project could be completed without significant cost and time overruns was considered an overwhelming achievement. He was made Managing Director of the Delhi Metro in 2005 and the rest, as everyone knows, is history. gfiles inside the government vol. 7, issue 9 | December 2013 13
  13. 13. COVER STORY awards good governance Exceptional Contribution Award Prabhat Kumar and TKA Nair (centre) giving the award to Abhayanand (left) Abhayanand Director General of Police, Bihar For contributing successful policing initiatives such as speedy trial and formation of Special Auxiliary Police from among retired army officers, thereby tremendously improving law and order in Bihar 14 gfiles inside the government vol. 7, issue 9 | December 2013 A 1977-batch IPS officer of the Bihar cadre, Abhayanand is also an eminent educationist of Super 30 fame, teaching poor students to crack the IIT JEE. He is the brain behind the speedy trial and conviction of criminals in Bihar. Credited for the shift in police focus to conviction, he believes the Arms Act is a very powerful instrument for the police to instil fear of the law in habitual lawbreakers. As policemen themselves can be witnesses in an Arms Act chargesheet, there is no chance of not getting witnesses or of witnesses turning hostile. There were a record number of convictions, including of very powerful bahubalis or musclemen, leading to a tremendous improvement in the law and order situation in Bihar. In 2010 alone, 14,311 persons were convicted in speedy trials with 37 being awarded capital punishment and 1,875 life imprisonment. As envisioned by Abhayanand, this succeeded in instilling fear of the law in lawbreakers and drew worldwide attention with the Princeton Review doing a detailed study on it. Backed by political will in 2005, Abhayanand came up with the idea of recruiting retired soldiers, already trained in weaponry and combat, to meet the manpower shortage in the Bihar police force especially to carry out operations against Naxalites and criminal gangs. Thus the Bihar government quickly recruited 5,000 exarmymen in the police force. The concept was soon taken up by other states such as Odisha, Madhya Pradesh and Jharkhand. www.gfilesindia.com
  14. 14. www.indianbuzz.com gfiles inside the government vol. 7, issue 9 | December 2013 15
  15. 15. COVER STORY awards good governance Exceptional Contribution Award Slovenian Ambassador Darja Bavdez Kuret gives the award to Dr Amarjit Singh Dr Amarjit Singh Additional Secretary, HRD Ministry For successfully implementing the Safe Motherhood and Child Survival Programme through an efficient public-private partnership in the public health sector 16 gfiles inside the government vol. 7, issue 9 | December 2013 A 1982-batch IAS officer of the Gujarat cadre, Dr Amarjit Singh was the first person to create an efficient public-private partnership in the public health sector. What moved him was the sight of a pregnant woman being carried on a pole by two villagers. It didn’t seem she would survive the arduous trek to the nearest primary health centre. Holding a PhD in the cost-effectiveness of India’s blindness control programme from the Liverpool School of Tropical Medicine, Dr Singh discovered that more than 60 per cent of India’s newborns die within the first 28 days. India accounts for a fourth of maternal deaths worldwide annually because 50 per cent of the 27 million deliveries every year are handled by unskilled attendants. In Gujarat, where he was posted between 2001 and 2009, there were only seven obstetricians in the rural Community Health Centres while the requirement was for 273. As Commissioner, Health and Medical Services, Government of Gujarat, he initiated the Chiranjeevi Yojana scheme in April 2005 by co-opting private obstetricians by ensuring them a flat fee for every 100 deliveries, a part of which was paid in advance. The scheme thus allows families living below the poverty line to use either public or private health facilities, free of cost. The success of the scheme can be gauged by the fact that between January 2007 and January 2010, 4,35,047 safe deliveries were carried out by 768 obstetricians. www.gfilesindia.com
  16. 16. www.indianbuzz.com gfiles inside the government vol. 7, issue 9 | December 2013 17
  17. 17. COVER STORY awards good governance Exceptional Contribution Award Minister Councellor-DCM, Syria, Wael Deirki gives the award to JS Deepak JS Deepak Additional Secretary, Commerce Ministry For successfully conducting 3G auctions, using state-of-the-art custom-built technology through a smooth, fair, transparent and participant-friendly process that fetched more than three times the targetted revenue for the Government 18 gfiles inside the government vol. 7, issue 9 | December 2013 A 1982-batch IAS officer of the Uttar Pradesh cadre, JS Deepak is credited with scripting one of the most successful auctions conducted by any government across the globe—the 3G spectrum auctions, a pioneering governance reform in the country. Deepak, then Joint Secretary, Telecom, and the principal officer responsible for the design and conduct of the 3G auction, was instrumental in designing and successfully conducting the e-auctions in 2010 that fetched over Rs 1.06 lakh crore for the Government—more than three times the target of Rs 35,000 crore fixed by the Ministry of Finance and more than five times the reserve price. The design, highly sophisticated methodology yet extremely participant-friendly process, has since served as the basis for subsequent auctions held by the Government of India. He worked for almost two years to develop a state-of-the-art design, using the latest technological and security features that were custombuilt for Indian conditions, and based on some of the most successful international auctions. The 3G auction was highly successful and achieved all the objectives in one stroke by obtaining a marketdetermined price, maximising revenue proceeds through a smooth, fair and transparent process, and promoting roll-out of 3G and broadband services with all stakeholders highly satisfied. The auction has shown that a similar mechanism could be used for selling or allocating scarce and valuable government resources or assets. www.gfilesindia.com
  18. 18. GROUP HOUSING PROJECT For Civil Servants “Commonwealth Co-operative Group Housing Society Ltd” has been formed by a group of senior Civil Servants by enrolling members from IAS / IFS / IPS / IFOS / IRS / IES / Railways and other services not below the rank of Deputy Secretary to GOI. Limited membership is also open for PSUs, Bankers, eminent professionals such as CAs, Advocates, Business persons and Academicians. The society has already received more than 200 memberships. The objective of the society (in brief) would be to make available built-up flats / land for construction of flats for state-of-the-art highend residential accommodation at prime locations to its members in GURGAON / NOIDA / DELHI. www.indianbuzz.com For any further clarification/application form contact Prem Gupta, Chartered Accountant on email: cmscghs@yahoo.in or mobile: 09810137909, NEW DELHIthe government gfiles inside vol. 7, issue 9 | December 2013 19
  19. 19. COVER STORY awards good governance Excellent Contribution Award Prabhat Kumar and TKA Nair watch as Ashwani Lohani receives his award from Chhattisgarh Governor Shekhar Dutt Ashwani Lohani Chief Mechanical Engineer, Northern Railway For outstanding contribution in Indian tourism both at national and state level that drew nationwide attention and appreciation and won him the tag of successful turnaround manager 20 gfiles inside the government vol. 7, issue 9 | December 2013 A 1980-batch Indian Railway Service officer, Ashwani Lohani is a gold medallist in metallurgical engineering. A fellow of the Institution of Engineers and the Chartered Institute of Logistics and Transport, he worked as the Divisional Railway Manager of Delhi, Director, National Rail Museum, Director, Ministry of Tourism, CMD, India Tourism Development Corporation (ITDC) and MD, Madhya Pradesh State Tourism Development Corporation (MPSTDC). As Chairman and Managing Director, he is credited with having achieved the turnaround of ITDC in year 2002-3 and of MPSTDC in 2004-5. Among many awards and accolades, he was conferred with the Lifetime Achievement Award in Tourism and Madhya Pradesh State Tourism Award ‘Icon of Change’ in 2010. It was his efforts in extensive branding, innovation, infrastructure development and marketing that made MP the most attractive tourist destination in the country and received four National Tourism Awards in 2008, including the award for ‘best tourism performing state in the country’ and three National Tourism Awards in 2009. His name also figured in the Guinness Book of World Records in 1998 for reviving the vintage Fairy Queen Express. New Delhi Station was twice awarded the National Tourism Award for the most tourist friendly station and won CAG appreciation for infrastructure work during the CWG during his tenure as Divisional Railway Manager of Delhi. www.gfilesindia.com
  20. 20. www.indianbuzz.com gfiles inside the government vol. 7, issue 9 | December 2013 21
  21. 21. COVER STORY awards good governance Excellent Contribution Award TKA Nair congratulates Atul N Patney as Prabhat Kumar and Shekhar Dutt watch with interest Atul N Patney PS, Minister of State for Social Justice & Empowerment For successfully conducting parliamentary, assembly and panchayat elections and also ensuring speedy and inclusive growth of Maharashtra’s Gadchiroli district amidst Naxalite threats and violence 22 gfiles inside the government vol. 7, issue 9 | December 2013 A 1999-batch IAS officer of the Maharashtra cadre, Atul N. Patney is a recipient of the Prime Minister’s Award for effective implementation of the Mahatma Gandhi National Rural Employment Guarantee Scheme. He is credited with having used IT for social development, improving health infrastructure and imparting quality education through the E-Vidya project in the remotest areas. His efforts to connect all IT institutes in the district through video conferencing contributed greatly to imparting technical training. He was conferred the E-Governance Award 2010 for launching the E-Disaster Management Service. Known for the best implementation of the Forest Rights Act (FRA) in the country, in Gadchiroli district of Maharashtra, especially in the backdrop of Naxalite threats to FRA teams and burning of their vehicles to stop their work, Patney effectively used GPS in the district which otherwise had poor Internet connectivity and little infrastructure support. His most notable work, carried out under threat from Naxalites, was to conduct parliamentary, assembly and panchayat elections successfully by taking innovative measures such as launching a voters’ awareness campaign and holding Samajik Suraksha Melas. Patney got the President’s Award for innovative practices in elections that were adopted as a role model by the Election Commission of India but was also nominated by the state government for the Prime Minister’s award in 2010. www.gfilesindia.com
  22. 22. Indrox Global Pvt. Ltd (IGPL) “POLLUTION ABATEMENT PLANT” “ Maintenance of Acid regeneration plant (ARP) and Iron oxide production facilities. Indrox Global is the only company in INDIA to take up Acid regeneration projects on turnkey basis i.e. build, operate & maintain the Plant & is also doing the marketing of Iron Oxide. Indrox Global Pvt. Ltd (IGPL) was set up in the year 2003 and started its operations to process the waste pickle liquor (WPL) in the year 2004. WPL produced by nearby steel plants to Jindal, Tata, Essar etc is treated in Indrox Global and converted into regenerated hydrochloric acid with yield up to 99% recovery and is returned to these industries for reuse. Indrox Global Pvt Ltd is ISO 9001:2008 certified for “Quality Management System” & ISO 14001:2004 certified for “Environmetal Management System”. Indrox Global employs more than 60 Engineering, Production and Project personnel. With broad spectrum of technical expertise and comprehensive in house capabilities, Indrox Global is a leader committed to provide economical solutions with superior technology to all our customers. Indrox Global technology offers flexibility to produce specific grades of “Iron Oxide” varying in physical properties and chemical purity. “ M/s Indrox Global Pvt. Ltd (IGPL) is the leading Indian company in Operation & Indrox Global is pioneer in Design, Installation, Operation and Maintenance of Acid Regeneration Plant (ARP) & Iron oxide production. CORE COMPETENCIES Indore Global Pvt. Ltd (IGPL), with its impressive Acid Regeneration Plant know-how, is in an excellent position to perform multi cultural business environment and to serve clients in following capacities: ● Operation & Maintenance of Acid Regeneration Plants ● Acid Regeneration plant on Turnkey basis Designing Basic & Detailed Engineering Equipment sourcing Construction Erection & Commissioning Operation & Maintenance ● Acid Regeneration Plant on BOO basis Build Own Operate & Maintain ● Plant UP gradation and replacement ● Marketing of Iron Oxide ● Hazardous Material Management NEED FOR ACID REGENERATION PLANT ● The Steel Industries producing cold rolled steel products use Picking operation for cleaning of the steel sheets, long and flat products, to remove surface iron oxide built up on steel. ● During Picking process, steel sheets are passed through pool of Hydrochloric acid to remove surface impurities, before these sheets can be processed further. This process generates waste hydrochloric acid WPL which is considered as industrial waste and needs further treatment before disposing into the environment as per the pollution standards. Typically, each ton of the steel pickled will produce 30-35 liters of WPL. ● Even the ETP treated effluent has been a potential hazard to the environment as the disposed acidic water contaminate the water bodies and the landfills affect the soil. These eventually result in unrecoverable damages to land and water bodies. ● Indrox Global designed plant is Zero discharge plant making the environment pollution-free. The plant provides total relief from environment hazards in disposal of acidic effluents. ● Indrox Global designed ARP ensure the compliance to ISO 14001:2004 (Environmental Pollution Control and Management) viz Section 26 of water (Prevention & control of Pollution) Act 1974 Section 21 of Air (Prevention & control of Pollution) Act 1974 Rule 5 of the Hazardous waste (Management & Handling) Rules 1989 and amendment rules 2003 ● The economics of the process is promising as apart from regeneration of hydrochloric acid with 99% chlorides recovery (that being re-used in pickling line), good quality Iron oxide is also produced as byproduct which is used by Paint Industries and in the manufacture of different grades of ferrites (used in magnetic and electronic components in various industries), under material for refractories etc. HEAD OFFICE: A-19, Ground Floor, Kailash Colony, New Delhi-110046 Pone: 011-29237845, 29237846 Fax: 011-29237849 Email: a.wadhawan@indroxglobal.com Website: www.indroxglobal.com www.indianbuzz.com 23 gfiles inside the government PLANT: B-11, MIDC Tarapur Industrial Area, Near TMRCT, Hospital, Boisar (W) 401506, Distt. Thane (Maharashtra) vol. 7, issue Phone: 02525-260614/261858 Fax: 02525-261627 E-mail: indrox_tarapur@rediffmail.com 9 | December 2013
  23. 23. COVER STORY awards good governance Excellent Contribution Award Shekhar Dutt gives the award to Jayesh Ranjan with TKA Nair on his side Jayesh Ranjan VC & MD, AP Industrial Infrastructure Corporation For successfully implementing social mobilisation approach with the support of the World Bank to impact an all-round improvement in the condition of the poorest of the poor in Andhra Pradesh 24 gfiles inside the government vol. 7, issue 9 | December 2013 A 1992-batch IAS officer of the Andhra Pradesh cadre, Jayesh Ranjan was the all-India topper of his batch. An alumnus of Delhi University and an MBA from IIM, Kolkata, he earned a Master’s in Public Management from Lee Kuan Yew School of Public Policy, National University of Singapore. He has done short-term courses on Environmental Policy Analysis, Globalisation and Leadership, and Public Policy from the University of Birmingham, London School of Economics and Harvard University, respectively. He was awarded the World Bank’s Social Capital Visiting Scholarship in 2002 and the British Government’s Chevening Gurukul Scholarship in 2005 and has done international consultancy assignments for the World Bank and UN-ESCAP. Ranjan is credited with implementing the Andhra Pradesh District Poverty Initiative Project (APDPIP) in 2000 as its first Project Director by adapting a very innovative and community-centred approach with extremely encouraging results. Within a decade, the social mobilisation approach succeeded in mobilising 99.5 lakh poor people through community organisations. The mobilisation has been supported by the World Bank and Government of India, and an amount of Rs 2,500 crore has so far been spent. The process has been so robust that the strength of the community organisations has been recognised by the commercial banks, which in turn extended credit to the tune of Rs 20,000 crore to them. www.gfilesindia.com
  24. 24. www.indianbuzz.com gfiles inside the government vol. 7, issue 9 | December 2013 25
  25. 25. COVER STORY awards good governance Excellent Contribution Award Additional Secretary, Agriculture, Dalip Singh receives the award from Slovenian Ambassador Darja Bavdez Kuret on behalf of Santha Sheela Nair (inset) Santha Sheela Nair Vice-Chairperson, Tamil Nadu State Planning Commission For successfully implementing the Chief Minister’s programme of compulsory rain water harvesting in Chennai and other parts of Tamil Nadu and for contributing to preventing the water crisis from spiralling out of control 26 gfiles inside the government vol. 7, issue 9 | December 2013 A 1973-batch IAS officer of the Tamil Nadu cadre, Santha Sheela Nair started her career as Sub Collector, Dindigul, in 1975. She is credited with having contributed to the successful implementation of the rain water harvesting scheme announced by Chief Minister J Jayalalithaa. Nair served as both Chairman and Managing Director of the Chennai Water Supply and Sewerage Board in 1994 and later as Secretary, Municipal Administration and Water Supply in 2001. The Chief Minister’s directive to make rain water harvesting mandatory in Tamil Nadu was implemented through a series of appropriate measures within a year as mandated by a newly enacted law. The government declared that non-compliance would be met with disconnection of water and sewer pipes. The successful implementation helped considerably in efficient management of the water crisis in Chennai. Nair also worked on an antiflooding measure by creating rain water harvesting points in low-lying areas. As a result, the ground water level rose by five feet. The cent per cent coverage of every household and every building remains unparalleled. As Secretary to the Government of India, Department of Drinking Water Supply and Sanitation, she is credited with revamping and coordinating the decades-old scheme of Accelerated Rural Water Supply with the National Drinking Water Policy and a new National Rural Drinking Water Supply Programme. www.gfilesindia.com
  26. 26. www.indianbuzz.com gfiles inside the government vol. 7, issue 9 | December 2013 27
  27. 27. EXPOSÉ nsel scam Operation Cover-Up It has been almost six months since the National Spot Exchange (NSEL) operations were halted after gfiles exposed the Rs 5,600-crore scam in June 2013. But the investigations against Jignesh Shah—the man behind the NSEL scam—began only after gfiles’ cover story in September 2013. The reluctance to initiate action against Shah continues even today, and he remains beyond the pale of the law. He has still not been arrested though there’s an open-and-shut case against him. Neeraj Mahajan tries to find out the reasons behind this cover-up and why the government is shy of initiating action against Shah F ORMER CIC and Secretary, Department of Personnel & Training (DoPT), Satyanand Mishra, a 1973-batch IAS officer, and former Union Home Secretary GK Pillai, a 1972-batch Kerala cadre IAS officer, are no doubt capable officers but can they perform miracles and plug all loopholes in the Financial Technologies ecosystem overnight? That too, without any direct knowledge or on the ground experience about the complexities of commodity trading? Would their mere presence itself tighten all loose ends and prevent all bad things from happening— 28 gfiles inside the government vol. 7, issue 9 | December 2013 this is the moot question uppermost in everyone’s minds. The fact that the FMC and MCX boards concurred on the appointment of Mishra as the new Chairman of the Multi Commodity Exchange of India Ltd was astonishing. No less surprising was the timing of the announcement, just a few days after Pillai entrenched himself as Chairman and former LIC acting chairman Thomas Mathew took over as vice-chairman of MCX-SX. Unlike Mishra, Pillai was reportedly keen to move to the private sector. Within two months of his retirement as home secretary, he sought the permission of the Department of Personnel and Training (DoPT) to join IvyCap Trust Fund-I as their adviser. IAS officers seeking private sector posts within a year of retirement have to seek permission from the government. Another recent development that Financial Technologies (India) Limited (FTIL) has tried to downplay is the decision to change its registered address from Mumbai to Shakti Tower-1, 7th Floor, Premises E, 766, Anna Salai, Thousand Lights, Chennai—600002, with effect from December 2, 2013. Why? Even the company officials have no answer. Why would a company whose entire operations are based in Mumbai or outside India have its headquarters in Chennai? Curiously, FTIL as we know today was floated in Chennai by C Subramaniam, who remained one of the oldest shareholders on its board before quitting in 2010. FTIL had been in the news since www.gfilesindia.com
  28. 28. five of its Directors—CM Maniar, N Balasubramanian, R Devarajan, PR Barpande and TC Nair quit in quick succession. When Paras Ajmera, the last nominee of the promoters, resigned recently, there was speculation that Jignesh Shah had just about lost control. But behind the façade, Shah continues to call the shots as the Chairman and Group CEO of FTIL. He may be down, but not out. His brother, Manjay Shah, and friend, Dewang Neralla, are supporting him as full-time directors. The board also has former Forward Markets Commission (FMC) Chairman Venkat Chary, A Nagrajan, IAS (Retd), and Justice Rajan Jodhraj Kochar, a retired judge from Bombay High Court, as independent directors. Chary, a retired IAS officer, has been associated with IEX, MCX-SX and MCX as independent director and chairman for the last 10 years. FTIL also holds a 26 per cent stake in MCX, besides NSEL, FTIL and MCX are joint promoters of the MCX-SX stock exchange. But, all said and done, the impact of the NSEL crisis has been that the credibility of the FTIL group as a whole has been affected so badly that investors think twice before dealing with any of the companies in its fold. As if by design, seven of the 14 members on the MCX board today are FMC-nominated independent directors. The new board has three former IAS officers—Satyanand Mishra, RM Premkumar and Ravi Kamal Bhargava, besides G Anantharaman, who retired from IRS. Dinesh Kumar Mehrotra, Pravir Vohra and Santosh Kumar Mohanty are the other FMC-nominated independent directors. The shareholder directors on the MCX board include KN Reghunathan (Union Bank of India), Sanjaya Agarwal (Bank of Baroda), The biggest challenge that newly appointed MCX-SX chairman GK Pillai faces is to somehow convince the investors and stakeholders that MCX-SX is now owned and controlled not by FTIL, but by institutional investors P Paramasivam (Corporation Bank), P Satish (Director, NABARD), AK Prabhu (Canara Bank) and BV Chaubal (State Bank of India). The biggest challenge that newly appointed MCX-SX chairman Pillai faces is to somehow convince the investors and stakeholders that MCXSX is now owned and controlled not by FTIL but by institutional investors. MCX-SX’s shareholders include 18 banks and financial institutions which hold 87.42 per cent stake. These are IL&FS Financial Services, IFCI, Union Bank, PNB, Corporation Bank, Indian Overseas Bank, Indian Bank, OBC, Allahabad Bank, Andhra Bank, BoI, BOB, Syndicate Bank, HDFC Bank, SBI, United Bank, Vijaya Bank and Axis Bank. Pillai has a majority on his side, but whether he will be able to translate this strength into positive transformation remains to be seen. A man who could upset Pillai’s calculations is Miten Mehta—a Jignesh Shah loyalist, who has been appointed the promoter’s nominee on the MCX board and shareholder director of FTIL. Mehta, who till recently was Director, Communications and Investor Relations, of the FTIL Group has been appointed Director, MCX. A ccording to the Mumbai Police’s Economic Offences Wing (EOW), some of the defaulting firms have used the money to buy companies abroad using hawala transactions. One such company was the Bengaluru-based Aastha Minmet (India) Ltd (Corporate Identity Number U27105KA2007PLC042717), promoted by Mohit Aggarwal and Shilpa Aggarwal, a coal and ferrous metal importer that owes Rs 26.5 crore to the NSEL and Rs 219.2 crore to Juggernaut Projects, another NSEL defaulter. Aastha Minmet allegedly www.indianbuzz.com gfiles inside the government vol. 7, issue 9 | December 2013 29
  29. 29. EXPOSÉ nsel scam pumped in a part of this money to acquire 100 per cent stake in Akshaj Ventures Singapore Pte Ltd, originally incorporated as Anker Shipping Pte Ltd under the Companies Act in Singapore on March 12, 2011. The name of the company was changed to Akshaj Ventures Singapore Pte Ltd on June 18, 2012, and it became a foreign subsidiary of the Aastha Group on March 22, 2013. Mohit Aggarwal was co-opted on the board along with Ajay Chauhan and Kalyanasundaram Maran, the original promoters of Akshaj Ventures Singapore Pte Ltd. B OTH the companies even started sharing an office at 7500A Beach Road, 08-313, The Plaza, Republic of Singapore, 199591. The only catch in the otherwise win-win situation was that the Aastha Group’s promoters allegedly did not obtain RBI consent before ploughing the money abroad. It is intriguing how Aastha Minmet, a small-time importer operating on the NSEL, suddenly got the bright idea of acquiring Akshaj Ventures to use its international mining and trading contacts in Indonesia, Singapore and Africa to import coal in bulk from South Africa, Singapore and Indonesia, iron ore from Mali and Turkey and steel scrap from Hong Kong and Belgium. The Aastha Group also wanted to take over some Turkish chrome ore mines and become a market leader in India. Hence, someone suggested the option of acquiring 100 per cent stake in this well-connected and resourceful foreign subsidiary. When the NSEL fiasco became public, Aastha had to shelve plans for a Rs 42-crore IPO. It now transpires that the company has been sued by Rayen Steel Pvt Ltd under the Negotiable Instruments Act for dishonour of cheques worth Rs 1,09,01,250. 30 gfiles inside the government vol. 7, issue 9 | December 2013 Interestingly, on July 31, NSEL claimed that a stock of 65,250 MTs of steel TMT bars was held by both Aastha Minmet and Juggernaut in Andhra Pradesh, but later Aastha’s name vanished from the website. Once the heat became unbearable, NSEL had to retract and disable Aastha’s Unique Client Codes (UCC) to prevent it from trading on its platform. Prithviraj Kothari, the owner of RiddiSiddhi Bullions Ltd, allegedly acted as a money-laundering conduit in the DGCX, from where the margin money collected in cash from Indian investors for commodity trading literally vanished in thin air. Most of these transactions were through hawala, where only the differential profits were calculated and settled without any book entry. In the hurry to set up one global exchange after another, Shah allegedly violated many foreign exchange laws. There are several instances of pare trades, where MCX investors were offered favourable positions on international exchanges floated by the FTIL group. Gold contracts in Bahrain, Singapore and DGCX followed this trend, violating foreign exchange and money-laundering laws. However, in its mistaken notion about the sinner and the sinned, the In the hurry to set up one global exchange after another, Shah allegedly violated many foreign exchange laws. There are several instances of pare trades, where MCX investors were offered favourable positions on international exchanges floated by the FTIL group Mumbai Police EoW is only shaking the leaves of the tree without digging to chop the root cause of this mess— Jignesh Shah. EoW officials are patting their own backs for attaching 107 properties of the “accused” in the NSEL scam while Shah is free to do whatever he likes in Singapore, Dubai, Botswana and Bahrain. The FTIL and MCX were minority shareholders in DGCX, the Middle East’s largest, first and only derivatives exchange regulated by the Emirates Securities and Commodities Authority (ESCA). DGCX had the strategic advantage of being located in a time zone between Europe and the Far East. The FTIL held two of the five nominated board seats—Shah (Vice-chairman) and Joseph Massey (Director). Gautam Sashittal, another Indian, also serves as non-executive member on the DGCX board. Initially, the Dubai Multi Commodity Centre (DMCC), owned by the Dubai government, FTIL and MCX held equal stake in DGCX in 2005. FTIL and MCX held 40 per cent and 10 per cent, respectively, when DGCX began operations. But in 2007, the FT Group sold 1 per cent stake to DMCC for Rs 60 crore and another 5 per cent to Passport Capital, a foreign investor. DGCX prospered due to support of Indian bullion and diamond merchants in the Emirates and soon became the first bourse to offer dollar-rupee forex trading, even before India allowed such trading in domestic exchanges. Shah allegedly transformed DGCX into a den for illegal hawala transactions in bullion, currency and metals without the necessary Reserve Bank of India (RBI) clearance. RBI forbids Indian individuals and companies from trading and equity participation on foreign shores because the Indian rupee as a currency is not fully convertible. According to www.gfilesindia.com
  30. 30. www.indianbuzz.com gfiles inside the government vol. 7, issue 9 | December 2013 31
  31. 31. EXPOSÉ nsel scam Jignesh Shah (centre) had many charmed before the Rs 5,600-crore NSEL scam was revealed a recent RBI circular, “It is observed that eligible Indian parties are using overseas direct investment automatic route to set up certain structures facilitating trading in currencies, securities and commodities. Any incidence of such product facilitation would be treated as a contravention of the extant FEMA regulations and would consequently attract action under the relevant provisions of FEMA.” The FTIL is understood to have offloaded its stake in the Singapore Mercantile Exchange (SMX), launched three years ago for trading in metals, energy, currency and agriculture commodities. It earlier owned SMX through its subsidiary, Financial Technologies Singapore Pte Ltd (FTSPL) and then sold its stake to ICE Singapore Holdings, an entity owned by Atlanta-based ICE group, for US$150 million (Rs 931 crore). Significantly, the deal to acquire SMX—with an average of over 8,200 contracts and daily turnover of around $200 million—was an all-cash transaction. According to 32 gfiles inside the government vol. 7, issue 9 | December 2013 Stop Press: As we go to press, the Mumbai Police EoW has attached the properties of Shah, Joseph Massey, Shreekant Jawalgekar and Shankarlal Guru. This brings the total book value of 206 properties, 322 bank accounts, Rs 171 crore cash, Rs 229.22 crore in shares and other investments besides 15 vehicles worth Rs 5.82 crore attached so far to Rs 2,580 crore. This is half of the NSEL outstandings. But to liquidate all this, the Mumbai Police will have to either increase the size of its malkhanaas, or engage online auction firms like olx.com to dispose of things to recover Rs 5,600 crore due to 13,000 investors. Even now no one is talking about bringing Rs 931 crore obtained from dilution of 100 per cent stake in the Singapore Mercantile Exchange back to India! informed sources, FTIL’s sudden exit from the SMX was in all likelihood masterminded by the Monetary Authority of Singapore (MAS), the financial services regulator in the island country which has a tight control over the affairs of the bourse though its independent directors on the board of SMX. In a tightly regulated market like Singapore, MAS has a way of subtly telling exchange owners to do things their way or risk losing their licence. T HE FTIL is now planning to raise more money by disposing of its interests in Africa, the Middle East, India and South-East Asia. It holds 31 per cent equity in the Dubai Gold and Commodity Exchange (DGCX), besides the Bahrain Financial Exchange, Bourse Africa and Global Board of Trade (GBOT), Mauritius. The FTIL is also looking to sell its stake in its exchanges in UAE, Bahrain, Mauritius, South Africa, Kenya and Botswana. The tragic part of the story is that, instead of paying off thousands of creditors in India, the FTIL plans to keep these sale proceeds from overseas to repay its External Commercial Borrowings (ECB) and Foreign Currency Loans (FCL). Earlier, FTIL was allowed to sell 6 per cent stake in the Indian Energy Exchange, ostensibly to bring down its stake to 25 per cent in order to comply with the requirements of the Central Electricity Regulatory Commission. Either way, it means that Shah’s money—in India or abroad—is safe. It will allegedly not be allowed to reach the rightful owners. g www.gfilesindia.com
  32. 32. ind c ia. ind .co m m .co m co ia. ind dia in ia om ind ia.c m ind .co ia om ind .c dia om www.indianbuzz.com www.indianbuzz.com gfiles inside the government gfiles inside the government vol. 7, issue 9 | 5 | August 2013 vol. 7, issue December 19 33
  33. 33. GOVERNANCE agenda mg devasahayam Wish list for the wannabe Prime Minister! While Narendra Modi is creating an impact as the BJP’s prime ministerial candidate, he has not yet spoken about his ‘Idea of India’ W HEN Narendra Modi was made the BJP’s campaign committee chief, a leading newspaper columnist wrote: “For the faithful, there is no truth bigger than Narendra Modi’s ‘destined’ future as Prime Minister. His critics protest that the elevation will not happen, worry that it might happen, and agonise over what will happen when that happens….The Gujarat Chief Minister is admittedly a challenge the like of which India has never seen before.” Soon thereafter the saffron party threw down the gauntlet by declaring him as the prime ministerial candidate. And he is running a full juggernaut around the country adopting a ‘messiah’ mode of campaigning! Modi is the longest-serving chief minister of Gujarat. He is known for his astute administrative skills and has a record for being incorruptible. He is credited with turning around Gujarat’s economy and making it an attractive investment destination for industrialists. Modi is a compelling orator who, as one corporate executive after another has said, offers the best model of governance in a country rife with corruption and red tape. Across the nation there is a palpa- 34 gfiles inside the government vol. 7, issue 9 | December 2013 ble sense of elation at the prospect of Modi becoming Prime Minister. According to his admirers, NaMo has arrived in style, notwithstanding the stiff resistance from many quarters. For them, Delhi is finally on NaMo’s radar and his devotees can see the domes of South Block, which he will hopefully occupy soon. Fortifying this, Modi is claiming the legacy of the ‘Iron Man of India’, Sardar Vallabhbhai Patel, by reiterating the comment that has been in the minds of many people: “Had Sardar been the first Prime Minister of India, the country’s destiny would have been different.” Another association NaMo claims is that of Jayaprakash Narayan (JP) whom his chronicler Sunanda K Datta-Ray, considers “as the best Prime Minister India never had”. Those who knew JP would agree wholeheartedly. Modi’s involvement There are several positive things going for Modi. He spoke for all of South India when he declared at a Chennai meeting that ‘India is not just New Delhi’ in the Navnirman Movement of the turbulent 1970s was deeply inspired by none other than JP, who remained a powerful guiding force for him. I have known JP closely and had the privilege of having indirectly assisted him in achieving India’s second freedom. I have read a lot about the Sardar and what he did to shape India as a unified nation and position the instruments to sustain it. I entirely agree that, had these true patriots and passionate leaders guided the destiny of independent India in the initial years, we would today be a true and functional democracy and not the false and dysfunctional ‘dynacracy’ that we are! Nevertheless, for Modi to convincingly invoke the names of these towering titans, his agenda needs considerable depth and width. There are several positive things going for Modi, though. He spoke for all of South India when he declared at a Chennai meeting that ‘India is not just New Delhi’. He draws massive crowds wherever he goes and the vibrancy at his rallies are reminiscent of the postEmergency scenario when people of the Indo-Gangetic belt, responding to the battle-cry of JP, threw out Indira Gandhi’s government in the 1977 www.gfilesindia.com
  34. 34. election. I have been witness to this. What has also impressed the public is his composure and demeanour while addressing a massive crowd, even as low-intensity bombs were going off at his Hunkar rally in Patna. This is clear demonstration of his courage in the face of mortal danger, his presence of mind, his leadership qualities and forbearance. Of late, in his own inimitable style, ‘the tea-seller’ is projecting a vision in which bare necessities like electricity and clean water will be basic rights and not favours from government and creating an economy that generates real jobs is as important as formulation of economic policies for a rich and prosperous India. These are not easy ideas to convey to people, but there are signs that Modi is getting his message through. Be that as it may, Modi has a long way to go and many hurdles to cross before he occupies the high office of the Prime Minister through democratic means, unlike the present un-elected surrogate of the dynastic clan! The most formidable hurdle is the Godhra killings (2002) and www.indianbuzz.com the wide perception that he is nonsecular. N Ram of The Hindu puts it bluntly: “It is this unbreakable genetic connection between 2002 and the present that makes it clear that a Modi prime ministership would be disastrous for democratic and secular India.” The BJP does deny this vociferously as being contrary to truth. But in the public domain, ‘truth’ is not the ‘truth’, perception is the ‘truth’! T HE second major hurdle is Modi’s own creation – the ‘development model’ that he has been ardently advocating. While admitting that Modi has the penchant for pursuing ‘development’ by fasttracking industrial and other projects, many experts and economists feel his model is not inclusive. They are of the view that while cities and towns have ‘developed’ under Modi’s infrastructure/industrialisation pursuit, villages have mostly been left in the lurch. His is not different from the UPA’s FDI-driven ‘growth’ agenda, laden with predatory and market-mad economic policies that is polarising peo- ple into one-third ‘privileged’ class and two-thirds ‘laggards’ living on the crumbs that trickle down! Polarising politics and the society is the main charge against Modi. Polarising the economy in addition would be a triple whammy with adverse consequences. Seeking to impose this Gujarat ‘development model’ on the whole nation could result in a backlash from the ‘laggards’. These major hurdles apart, Modi’s campaign itself has serious flaws. As of now, apart from one-liners, punching jibes, personal anecdotes, stale platitudes, satirical flings and promised goals, there is no worthwhile content in any of his speeches or discourses. This is despite the fact that, never before in the history of independent India has there been such a dire need for serious debate to address the gravest crises that confront the nation. India needs to know what should be done to set things right. These include near-total inaction by governments in the midst of humongous corruption; severe compromise of energy security by the mad pursuit of imported nuclear reactors; a complete foreign-policy gfiles inside the government vol. 7, issue 9 | December 2013 35
  35. 35. GOVERNANCE agenda mg devasahayam disaster resulting in neighbouring countries, including tiny Sri Lanka, humiliating us; and the Telangana implosion and huge gaps in the working of our Constitution which have wrecked federalism, ruined governance and removed all accountability from our political system. T HE form and substance of affirmative action to introduce social justice have left huge segments of the population aggrieved and angry while creating bitter divisiveness between many castes and communities. The economy is sinking. Prices are soaring. Unemployment, particularly in rural India, is mounting. Due to extractive land policies, agriculture is perishing and food insecurity is looming. Bereft of any ethos, urbanisation has descended into chaotic land-lust. The FDI-GDP mania has choked the labour-intensive manufacturing sector, crippling skill development and employment generation. With horrendous loot in defence procurement and mainstream armed forces nurturing a sense of alienation, military morale is low and national security is under threat. There has been concerted decimation of institutions and instruments of governance and those that are left stand diminished and devalued. Civil Services (IAS/IPS) are in total disarray. None of these burning issues threatening the stability, safety and integrity of the nation have been meaningfully addressed by the Gujarat Chief Minister, who could soon be ‘guiding the destiny of the nation!’ The man who wants to change the face of India and the way the Republic functions has not even talked of the ‘Idea of India’ and ‘Philosophy of the Republic’ as defined by its Founding Fathers. The ‘political idea’ of democracy is 36 gfiles inside the government vol. 7, issue 9 | December 2013 contained in the ‘Objectives Resolution’ moved by Jawaharlal Nehru in 1948, seeking a Republic “wherein all power and authority of the Sovereign Independent India, its constituent parts and organs of government, are derived from the people”. As early as 1922, Gandhi had described ‘Swaraj’ of the declared wish of the people of India”. Visions of these two Founding Fathers envisaged people-based governance with a bottoms-up decision-making process that would give everyone a place in the sun. Structurally, India’s democracy was to rise storey by storey from the foundation comprising self-governing, self-sufficient, agro-industrial, urbo-rural local communities—gram sabha, panchayat samiti and zilla The burning issues threatening the stability, safety and integrity of the nation have not been meaningfully addressed by the Gujarat Chief Minister parishad—that would form the foundation of vidhan sabhas and Lok Sabha. These politico-economic institutions will control and regulate the use of natural resources for the good of the community and the nation. Built on such a foundation is the ‘economic idea’ of equity envisaging independent India as sui generis, a society unlike any other, in a class of its own that would not follow the western pattern of mega industrialisation, urbanisation and individuation. India would be a people’s economy that would chart a distinct course in economic growth, which would be need-based, human-scale, balanced development while conserving nature and livelihoods. In a self-respecting nation, every citizen should get the strength, resource, opportunity and feet and earn his/her livelihood with honour and dignity, instead of endlessly depending on corporate trickledowns and government charity. The philosophy of the Republic is in the Preamble of the Constitution: “….to secure to all its citizens JUSTICE, social, economic and political;LIBERTY, of thought, expression, belief, faith and worship; EQUALITY of status and of opportunity and to promote among all its citizens; FRATERNITY assuring the dignity of the individual and the unity and integrity of the nation.” These now lie in virtual ruins and need to be rebuilt. On the ‘development’ side, instead of blindly advocating a predatory agenda, one should listen to what James A Robinson and Daron Acemoglu say in their scintillating book, Why Nations Fail: The Origins of Power, Prosperity and Poverty: “Inclusive economic institutions that enforce property rights, create a level playing new technologies and skills are more conducive to economic growth than extractive economic institutions that are structured to extract resources from the many by the few….Inclusive economic institutions are in turn supported by, and support, inclusive political institutions…” Most of India’s ills are due to too much of ‘government’. This needs urgent remediation. One should recall Thomas Jefferson’s sane advice: “That government is best which governs least.” The task is cut out for ‘modi’fication’ of Narendra Damodardas Modi, the man who could be PM! g (The writer is a former Army and IAS officer. Email: deva1940@gmail.com) www.gfilesindia.com
  36. 36. Thank you SAIL for making GOVERNANCE AWARDS www.indianbuzz.com 2013 A Success gfiles inside the government vol. 7, issue 9 | December 2013 37
  37. 37. GOVERNANCE corruption tn pandey BLACK MONEY No will, no way A FTER considerable heat in the past regarding undisclosed osed incomes, black money and foreign bank accounts, the government ment seems to have become lukewarm on m these issues as the elections are comming close. There is no talk about ut success achieved in these areas and the government’s strategies and plans to make successful dents in this sphere of great concern to the economy of the country, either in Parliament or outside it. In 2011 and the earlier part of t 2012, considerable anxiety was exhibited concerning black money in the country and about those who have amassed it in India and abroad. It had become a hot topic for discussion in Parliament and in civil society. Somewhat in panic, the Finance Ministry entrusted to three premier institutions of the country the task of simultaneously working out the quantum of black money and giving recommendations relating to its other aspects. These institutions are reported to have submitted their reports in March 2013, but they have not been released for public discussion till now. White paper on black money Bowing to the vigorous demand for a white paper on black money, the then Finance Minister, Pranab Mukherjee, issued such a paper on May 16, 2012, to present the different facets of black money and its complex relationship 38 gfiles inside the government vol. 7, issue 9 | December 2013 about tax evasion detected by the Income Ta Department, but no revTax elation is made whether such detection is because of normal functionbe ing of the department or because t There has been a huge of an special drive to catch the any hue and cry over black evaders. ev In the white paper, a money and foreign bank number of legislative and accounts in recent years. administrative measures were mentioned, such Despite all the rhetoric, no as creating a network of concrete step has been DTAAs and TIES, preventaken to punish the guilty tion of money laundering t and benami transactions, a judicial standards and accountability Bill, setting up of a directorate of with policy and administrative regime criminal investigation for exchange of in the country. It also sought to reflect information, setting up of income tax upon the policy options and strategies units overseas, providing a GST netthat the government had been pursu- work, imparting skills to the incomeing, or the need to take up new ones tax personnel for effective action, to address the issue of unaccounted and so on. But the outcome of these measures is not known. What is more money and corruption in public life. It has been more than a year since distressing is that no efforts have then, but the government has not been made to implement the existing come out with any paper or report provisions. An example of this is the on the issues, inter alia, regarding real estate sector, which is flourishing action taken and results achieved with unabated income in tax evasion. consequent to strategies proposed for Thus, a new white paper has become curbing corruption and black money necessary. through illegal and criminal activities, and those relating to repatria- Black money in real estate It is well known that there is a tion of such money stashed abroad. There is also a deafening silence on high utilisation of black money in the issues related to confidentiality of real estate deals. It is no secret that information and about punishment a real estate deal is never finalised inflicted on those found guilty. Of and at the value shown in the registraon, reports appear in the newspapers tion document. It may reflect 50 per www.gfilesindia.com
  38. 38. cent, or sometimes even 40 per cent, of the value determined and paid for the sale of the land and properties. Regretfully, the values declared for stamp duty assessments are awfully low compared to real values. Black marketers find it convenient to park their concealed income in this fastgrowing sector. Media reports show that a large part of the alleged ill-gotten money is invested in real estate. Ramalinga Raju, the man behind the Satyam fraud real estate firms—Maytas Properties and Maytas Infra—and in buying land in and around Hyderabad. Politicians and their relations invest in a large way in real estate and thus have large stakes in such properties. But precious little has been done to tap this sector for detection of black money and collection of revenue, with stern punishment to those found indulging in such transactions for decades. I T was reported that in the Saradha Group Chit Fund scam, that rocked Kolkata sometime back, the Group had over 100 firms, a majority of which were in the real estate business. It was in these businesses that the chit fund money was funnelled. The 2G spectrum scam too involved two large real estate firms—Unitech and DB Realty. In 2009, Ramalinga Raju, the disgraced founder of Satyam Computers, had confessed to diverting funds from his information technology company to two family-run Saradha Group’s Debjani Mukherjee being taken to court. The group had interests in the real estate sector Black money generated from various scams and bribes find their way into land and real estate because one can conveniently convert black money into hard assets and get a good return on such money Government’s acceptance concerning real estate sector The role of black money in real estate transactions has been accepted by the then Finance Minister in the white paper: “Due to rising prices of real estate, the tax incidence applicable on real estate transactions in the form of stamp duty and capital gains tax can create incentives for tax evasion through under-reporting of transaction price. This can lead to both generation and investment of black money. The buyer has the option of investing his black money by paying cash in addition to the documented sale consideration. This also leads to generation of black money in the hands of the recipients. A more sophisticated form occasionally resorted to consists of cash for the purchase of transferable development rights (TDR). TDRs are rights for construction beyond the usual limits, which can be transferred by the owner. These rights can be made available in lieu of area or land surrendered by the owner.” This position is continuing for years and the government has not been able to take any effective measure to check the use of black money and tax the UNI www.indianbuzz.com gfiles inside the government vol. 7, issue 9 | December 2013 39
  39. 39. GOVERNANCE corruption tn pandey unaccounted money invested in this sector. Measures taken in the past under the IT Act, namely, Acquisition of Immoveable Properties and Purchase of Immoveable Properties, have proved utter failures and no steps have been taken thereafter. Despite the promulgation of a new Benami Transactions (Prohibition) Bill, 2011, and its examination by the Standing Committee on Finance, this forceful instrument for checking black money via benami deals has not been enacted so far. What is surprising is that nobody talks of this law as in the case of the earlier law of 1988, which remained dormant legislation for nearly 23 years. This shows the non-seriousness of the government in checking black money. R Former Italian PM Silvio Berlusconi’s case has lessons for India EGRETFULLY, the government takes a soft stand because it is alleged that a majority of the political funding comes from this sector. Because of this conflict, many people of dubious background, who would not be able to survive in a regulated environment, thrive in real estate. One of the reasons touted for the great ability of the real estate sector to handle cash is that no formal funding is available, or allowed, in the country to buy land. Black money generated from various scams and bribes finds its way into land and real estate because one can conveniently convert black money into hard assets and get a good return on such money. The money invested in real estate appreciates quite fast and is the preferred outlet for concealed income. The way ahead The Income Tax Department can play an effective role in detection of black money in properties. For this, a team of investigators, well-versed in accountancy, financial deals, engi- 40 gfiles inside the government vol. 7, issue 9 | December 2013 For over a year, the government has not come out with any paper or report regarding action taken and results achieved consequent to strategies proposed for curbing corruption and black money through illegal and criminal activities, and those relating to repatriation of such money stashed abroad neering, valuation aspects and backed by adequate police force, is necessary to carry out extensive surveys and book the persons who have not disclosed investment in such properties, or have shown it at lesser figures to avoid tax, and punish those who have done so sternly. The Wanchoo Committee in 1971 had recommended that tax evaders should be debarred from holding public office and contesting elections. But no action on the suggestion was taken by governments of various parties in the past, and for obvious reasons. Checking black money is not possible without deterrent action. Even after so many years of income tax law, no big tax evader has been prosecuted. In this regard, a four-year prison sentence against the former Prime Minister of Italy sets a good example for the Indian authorities to follow. An ex-Prime Minister is a far cry in the Indian context. Even ordinary politicians are not caught and punished for income tax and other fraud. Unless there is a strong will to check black money and severely punish those caught making it, getting studies done regarding black money, issue of a white paper and making speeches and statements in Parliament and outside are not going to solve the problem. g The writer is former Chairman, Central Board for Direct Taxes (CBDT) www.gfilesindia.com
  40. 40. www.indianbuzz.com gfiles inside the government vol. 7, issue 9 | December 2013 41
  41. 41. FIRST STIRRINGS sunil patnaik by SHAILAJA CHANDRA I had heard of civil servants doing extraordinary things, but becoming a full-time servant of God was exceptional. This, then, is the story of an IAS officer who became a monk! He is today the vice-president of the Divine Life Society with its headquarters at the Sivananda Ashram in Rishikesh. I wondered how monkhood could offer the same satisfaction as making and implementing policy at the national or State-level. How difficult was it to abandon the unquestioned authority he must have once enjoyed in exchange for continuous communication with God? I had hazy recollections of a batchmate, Sunil Patnaik, when we were Sunil Patnaik as an IAS officer (above) and as Swami Nirliptananda Saraswati doubts? Did he feel up to facing celibacy forever? Unlike all the people I have interviewed, Swamiji read each question and answered it exactly to the point. But the flip side was that he did not offer a single extra word from his side. I, therefore, had to ask a variety of persons to fill in the blanks. Sunil Patnaik was the second son of a head clerk employed in the Zilla Parishad in Ganjam district of Odisha, who retired as the District Inspector of schools. Sunil’s mother was a housewife with little schooling, but, even so, whatever young Sunil learnt of religion during his childhood was from her. He had six brothers and three sisters, but he alone pursued the spiritual path and took renunciation IAS officer who became a monk! training at the National Academy of Administration, Mussoorie. He was a tall, mid-complexioned Oriya—a very quiet person and generally seen in the company of serious thinkers. Although he played billiards, he remained aloof from the rest of us talkative, talented and fun loving probationers. Several years later I learnt that Patnaik had become a monk, but I did not give it another thought. After all, I had never exchanged a single word with him. But now I needed to talk to him. Would he be lofty and monosyllabic? Would he be cool and standoffish? Once I was able to track down Swamiji, I started by asking him (on email) about his family background 42 gfiles inside the government vol. 7, issue 9 | December 2013 and factors that influenced him to join the IAS; also the emotions and apprehensions he experienced when he decided to leave prematurely. After all, Sunil had a full 14 years of meaningful service still ahead of him when he took the plunge. What inspired him to join the Sivananda order of monks? What were the requirements for work and prayer expected of him? Did he miss human relationships, physical comforts and the normal aspiration for recognition? Did severance from a meaningful and promising career leave him with www www gfiles dia. om www.gfilesindia.com www.gfilesindia.com ww. esind a. es ia.c
  42. 42. from worldly life. After completing a Master’s from Allahabad University, his older brother had suggested that he should try for the IAS–until then no member of the family had taken the competitive exam. Around the same time, a friend invited him to attend a satsang at a devotee’s house and presented him with two books on Swami Sivananda’s teachings. One of the books stirred something inside Sunil which compelled him to re-read it many times. The IAS exam was over but the interview was around the corner. Despite his humble background, Sunil cleared the examination and was allotted to his home state, Odisha. But, even as he readied himself for training at the National Academy, the teachings of Sivananda would resonate in his ears. While lectures on the Constitution, the economy and law went on, his thoughts would keep going back to the meaning of life. One weekend, when the entire Academy made a beeline to enjoy city life, Sunil persuaded cit two friends to join him to visit the Sivananda Ash Ashram at Rishikesh. This visit was a defining moment for him; defi but it still took 22 more years for Sunil to join the Ashram as a permanent Ash inmate. Back home, the prospect of marriage was being constantly suggested to him. But the wall he built around th himself was too strong for anyone to to penetrate. Eventually, people just Ev gave up. After the initial training perit od was ov an early posting as over, th the Zonal Administrator for the Dandakaranya f pr project gave him in insights into the trials of r resettling tens of thous sands of poor families u uprooted from former E East Pakistan. Later, as www.indian www.indianbuzz.com ww n ian ndia Collector of Bolangir district (now part of the KBK region of Odisha), Patnaik had to confront conditions of extreme scarcity which still beset the region. Four decades later, local people remember him because he would never use the dak bungalow beds or fuss over clean sheets and pillows. He would carry his own chatai, spread it on the floor, lay his own coverlet on top and just go to sleep. About his own career this is what he told me: “I never had a strong attachment to the service or to any particular job. I wanted first a little free time to myself, and ultimately to overcome all the limitations of the self to which we are all subject. I wanted to find perma- Sunil’s mother was a housewife with little schooling, but, even so, whatever young Sunil learnt of religion during his childhood was from her nent peace, eternal happiness, and moksha through self-realisation, or God realisation. This was the fundamental teaching of Swami Sivanandaji Maharaj. I never discussed the idea of leaving the service with anyone and it was entirely my own decision.” I wondered what was special about Swami Sivananda Maharaj and was surprised to find that he had practised medicine for 10 years in Malaysia. His inner voice kept reminding him: medicine provides healing at an external level; but what about the void that exists at a spiritual level? It was then that this practising doctor, who had studied medicine at Tanjore, returned to India and established the Sivananda Ashram on the bank of the Ganga, some three kilometres from Rishikesh. It became the headquarters of the Divine Life Society. Continuing my interview with Sunil, now known as Swami Nirliptananda Saraswati, I asked him about the time he left the service. “I finally bid goodbye to government service and my colleagues after 23 years as an IAS officer—when I still had 14 years of service left. My decision was not a sudden awakening, or a call from God. I had been thinking of making the break for several years and as every day passed, the teachings of Swami Sivananda were making a deeper and deeper impression on my mind. “I arrived at Rishikesh and stepped into the Ashram as an ordinary sadhak. I was initiated into sanyas in 1990 when my name was changed to Nirliptananda.” W HAT Swami Nirliptananda did not tell me, however, was that he was tutored over the years under Swami Krishnadandji Saraswati, himself the author of more than 50 books and eight score religious treatises and a scholar of both Western philosophy as well as the philosophy of Advaita Vedanta. About his early assignments, he told me: “Within a few months of my joining, Swami Chidananda Maharaj, the President of the Ashram, sent me a telegram from South Africa, asking me to meet him at Bombay. When I met him, he directed me to go down south and take charge of a 30-bedded hospital in a village in Pattamadai village, in the Tirunelveli district of Tamil Nadu. This was the birthplace of Swami Sivananda Maharaj. I was taken by surprise, but I left immediately. I ran the hospital for the next six years before returning to Rishikesh in 1996.” Today, Swami Nirliptanandaji is gfiles inside the government vol. 7, issue 9 | December 2013 43
  43. 43. FIRST STIRRINGS sunil patnaik the vice-president of the Divine Life Society. When he was younger, he served the Ashram by supervising the Ashram hospital, the dining hall, temples, goshalas and leprosy relief work, and imparting instruction on the scriptures. Today, he delivers discourses to hundreds of devotees, attends conferences and edits two monthly magazines. Selflessness and a sense of duty dominate his thoughts and speech. “Human beings cannot exist in a vacuum and necessarily depend on each other. That is why it is so important to perform one’s duty. When people follow their own whims and fancies, the outcome is a clash of interest which leads to conflict. It is, therefore, important to realise the need to fulfil one’s duties as a father, mother, son, daughter, husband and wife, but also as a part of society. At all times there is a responsibility to God, the Creator. It is only when an individual ceases to be obsessed with rewards and contributes for the sake of duty that he becomes detached from the material world. The only way to find happiness is through detachment because attachment brings suffering—attachment is the root cause of suffering.” I asked him about the relevance of the IAS in today’s times and this is what he had to say: “The IAS plays a central role in governing the country and can do a lot for people’s welfare. Nothing prevents an officer from doing good work until he ruffles some vested interest.” As the interview continued, I became uncomfortable about asking some personal questions. But I persisted nevertheless. “Do you watch television or read books, other than spiritual teachings? Do you play any games, visit relatives and friends or play a musical instru- 44 gfiles inside the government vol. 7, issue 9 | December 2013 Today, he delivers discourses to hundreds of devotees, attends conferences and edits two monthly magazines. Selflessness and a sense of duty dominate his thoughts and speech ment? What is the food like? What kind of clothes do you own and how often can you replace them?” were some of my questions. This is what I learnt: “My life in the Ashram is like this. I usually get up around 4 am. After a wash, I sit in prayer doing jap and meditation until 6 o’clock. Once I have bathed, I perform yogasanas and recite hymns. I have breakfast in my room at 8 o’clock, consisting of something light and tea. I go to the office until 11 am, meet visitors or undertake Ashram work. Lunch is between 11 and 12 noon and dinner at 8 pm. I eat both meals in my room and we get dal or sambar, a curry, chapati and buttermilk. Khichadi is served at night. In the evening I do some light exercise followed by prayer, jap and meditation. In the afternoons and after dinner I check emails and attend to correspondence. I read a spiritual book before going to bed at about 10 pm. Most of my free time goes in sadhna.” And then he added, almost with child-like innocence: “I already have two pairs of clothing and can have more if I need. I visit friends and family on special occasions. I generally do not watch television. On special occasions the devotees bring home-cooked paneer or halwa to the dining hall, which we all enjoy. We are allowed to keep small www.gfilesindia.com
  44. 44. Swami Nirliptananda giving a discourse to devotees offerings and can use them for personal expenses. I travel to many countries as assigned because there are several Sivananda centres in the world.” I learnt purely by accident that Swamiji continues to be a pensioner under the All India Service Pension Rules. The sum is not insubstantial but true to character, it goes to the Ashram. “What is your message for civil servants?” I asked. His response sounded harsh, but perhaps some of us need plain speaking. “God will punish civil servants who use their position for personal gain in violation of ethical norms. These people will have to reap the consequences of what they sow. It is not right to get attached to government position and privileges as attachment becomes the cause of sorrow. Like all things shortlived, these too are perishable. To find lasting peace and happiness one has www.indianbuzz.com ‘God will punish civil servants who use their position for personal gain in violation of ethical norms,’ says Swami Nirliptananda, when asked for his message to civil servants to cultivate devotion to God and also work without expecting anything in return. Pride, lust, anger, greed, hatred and selfishness ruin life. Meditation quietens the mind and helps one to realise God. It is necessary, therefore, to always remember God which alone can bring lasting happiness.” S EVA Ram Sharma, a retired IAS batchmate who was instrumental in bringing me in con- tact with Swamiji, was the Home Secretary in the Delhi Government when he retired. For the last score of years he hosts Swamiji on his occasional visits to Delhi and prostrates before him like every other devotee. “Swami Nirliptananda is a true monk,” he says, his eyes shining with fidelity. Sharma’s wife, Sarita, herself an accomplished Hindi writer (she writes under the penname Saryu), added this: “I am amazed at how devotees come with so many problems— nothing extraordinary but critical for the person seeking Swamiji’s advice. Whether it is about estrangement from children, relationship between husband and wife, or tussles in the office, Swamiji listens for as long as the devotee speaks and never interrupts. Only when the whole story is told, does he advise the disciple, speaking in a very personal, constructive and direct manner. What he says always has the desired effect. It is remarkable to watch this every time.” Seva Ram told me that 45 years ago, when they were just probationers at the Academy, Sunil had taught him a shloka from the Bhagvad Gita which resonates in his ears even today: “One who treats friends and enemies equally, balanced in honour and disgrace, heat and cold, happiness and anguish, free from attachment, unconcerned about blame and praise, controlled in speech, content, without any fixed residence, even-minded and engaged in devotional service, such a person is dear to Me.” g More stories written by Shailaja Chandra at over2shailaja@wordpress.com gfiles inside the government vol. 7, issue 9 | December 2013 45
  45. 45. TALKTIME parliament devender singh Parliamentary committees Sentinels of accountability B y the very nature of its composition, Parliament cannot mount an unremitting and effective vigil over the entire spectrum of governance. Parliaments across the globe, therefore, transact a great deal of business through committees. The Indian Parliament has developed a well-knit committee system, encompassing within its arch of scrutiny not only all ministries, departments and organisations of the government, but also vulnerable social groups like SCs, STs, OBCs, women, and so on. correspondent Kh Manglembi Devi interviewed Devender Singh, Joint Secretary, Lok Sabha Secretariat, who has serviced important committees of Parliament, including the oldest and one of the most prestigious committees, the PAC, for over two decades and worked under eminent parliamentarians/chairmen like AR Antulay, ND Tiwari, Shivraj Patil, Somnath Chatterjee, Bhupinder Singh Hooda, Sardar Buta Singh, Murli Manohar Joshi and many other veterans. He is also a faculty member of the Bureau of Parliamentary Studies and Training and the Institute of Constitutional and Parliamentary Studies and a domain scholar. Excerpts from the interview: Devender Singh, Joint Secretary, Lok Sabha Secretariat Bills are referred to some committee or the other for examination, forcing the government in some case, to promulgate an ordinance. Does it not amount to abdicating or impeding the functions of Parliament? - - - The core function of Parliament is to make laws. But of late, all 46 gfiles inside the government vol. 7, issue 9 | December 2013 www.gfilesindia.com
  46. 46. - - What are the powers and privileges of Parliamentary committees? Can a committee force attendance of a witness and punish them for nonappearance? What are the consequences if a witness prevaricates, or gives incorrect or misleading information to a committee? - - - - - - - - - A committee is composed on the principle of proportional representation of political parties in Parliament. How does a committee build consensus and when can a note of dissent be appended to a report? - - - - www.indianbuzz.com mittees? Do they not duplicate the work of Parliament and conduct scrutiny of the Executive ad nauseam, often leading to administrative paralysis? gfiles inside the government vol. 7, issue 9 | December 2013 47
  47. 47. TALKTIME parliament devender singh A file photo of the Public Accounts Committee (PAC) in session, under the chairmanship of ND Tiwari - - - - - - Please throw some light on how the committees work with - The PAC is examining the reports of the CAG on allocation of coal blocks, the Commonwealth Games, Adarsh Society, Westland helicopter deal, and so on. When will the PAC be able to present the report to Parliament? - g - 48 gfiles inside the government vol. 7, issue 9 | December 2013 (The views expressed are personal) www.gfilesindia.com

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