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Wednesday, February 21, 2018

Scamsters Paradise



In the first few weeks after ModiSarkar came to power in 2014, they set up an SIT on black money. I don’t know what happened to that SIT and what report it has submitted in four years since. In any case, no black money of any quantity has come back and this was one of the promises PM Modi had made – to bring back black money. I was pretty sure no black money is ever coming back and therefore, in a few months after this SIT, I wrote “Baby black is not coming back”. Lists were collected from various foreign banks during the previous Congress govt who decided not to disclose any names. ModiSarkar went one better; they appealed to the SC to hide many names claiming this would affect treaties with other countries. Arun Jaitley had more to show for all this.

Jaitley played games with the SC and the black money hoarders. Back in October 2014 Ram Jethmalani wrote a letter to AJ about it. Before these events, Jaitley (as usual) was in his “Durbar” mouthing stupid statements (I quote from my post linked in the first para): “To his eternal mutual-fan Barkha Dutt he said “I won’t be embarrassed if the names are released” meaning the BJP won’t be affected. To Navika Kumar on TimesNow he said “I am not saying anything, I am just smiling” when asked if there were any Congress names. AJ is used to political games in the Lutyens club”. AJ doesn’t like Defence or I&B (he is fit for only I&B though). PC too didn’t like the Home Ministry. Both of them like the “Big boys club” and both them are darlings of the media. You will NEVER find any serious criticism of these two in the media:
I don’t have any doubts that many fraudsters and black money hoarders are being deliberately protected. The list of names was to be given to SC by the SIT in a “sealed envelope”. I guess the list would be opened and disclosed in about 50 years when most of us are dead. Nobody is going to jail; no black money will ever be recovered. Now we are up against the financial crimes of Nirav Modi and Mehul Choksi and maybe a few more. In their own diamond industry, traders didn’t trust these two and for few years sold them stuff only against cash. Trust me, the Indian banking system is the most subject to fraudulent acts or abuse of power by the managers and directors of every bank. This is particularly with the PSU banks.

I have known businessmen and banks to collude and create and encash bogus LCs without material ever being actually sold. I have known businessmen and banks collude to discount bills of large sums for material never sold. I have known banks to banks to discount even bogus PDCs. I know of manufacturers showing billing and despatch from Daman or Silvassa to escape excise in the past. Such units had no more than a small shop in Daman/Silvassa with a table and chair in the place. I know a particular case where the bank and the business owner continued this practice over years. What the businessman did with the fraudulent borrowings is to invest in Real Estate. He made handsome gains in the real estate business in a short period and never defaulted on the borrowings so nobody faced any problems. Some years later the real estate business collapsed and the bank was in a deep hole and so was the businessman. They somehow managed to cover up the entire fraud.

Needless to say, in all these scams (of much smaller denominations) the bank manager gets a handsome “reward”. Many of these usually happen at banks at industrial zones where managers personally come to know the units and their owners quite well as also their modus operandi. They rely on the security of assets to cover up for their collusion. Diamonds are forever but they can also be FAKE, as we discovered in the recent cases. Some snippets in the Nirav-Mehul episode make interesting reading:
It’s interesting what Sanjay Pugalia says in his tweet above. Not only did Nirav Modi know his scams were coming out, he also planned well in advance to escape from India – Lock, Stock and Children. Surely, all the Babus and bank managers he must have “oiled” so well must have given him enough tips and time to escape. Mehul Choksi has also run off abroad. Hard to say if these guys are going to come back or if they hold citizenships of other countries. Doesn’t matter, none of the scam money is ever going to come back. Even in the case of Lalu Prasad, the courts sent him to jail but nary a mention of the recovery of money he was convicted of looting.

India has become a Scamsters Paradise. Thanks mostly to the Congress for this. If you have some connections you can loot Indian banks at will. The Congress is the “Congotri” of scams and corruption. From Govt scams to others like Vadra to the latest Nirav-Mehul scams, I have no doubts all of these are blessed by Congress. The problem is, PM Modi is unable or unwilling to act – hard to tell why. Maybe Jaitley influences the course of dealing with scamsters beyond NaMo’s control. Otherwise, how does one explain the govt and its ministers still sleeping and romancing criminal fraudsters like NDTV?
Very frequently, the frauds of NDTV keep coming out. Lately, a scam through FIPB clearance is out. PC’s son Karti is known and reported to have acted as a “broker” for such clearances and alleged to have made a lot of money through such brokerage. PC possessed a sealed letter to the SC on the Aircel-Maxis scam at his home which was discovered during the raid. Both PC and Karti are being investigated in the case. How these two fraudsters still roam around nonchalantly and keep blabbering nonsense against PM Modi is beyond comprehension. This can happen only in India. All these scamsters are UNTOUCHABLES. None of this will affect Jaitley one bit. AJ is just an unelectable Lutyens Durbar operator. But it dents the credibility of PM Modi a lot and he seems helpless despite being the most powerful PM in office in over 3 decades. Sample this by MD Nalapat in the Sunday Guardian:

his “Modi’s) government has ordered the forcible merger of a Mumbai-based company with a now defunct stock exchange begun by the major shareholder of the former. Oddly, the stockbrokers who actually owed the moneys in default seem to have escaped penal action thus far, while a separate company has been marked for destruction through forcible payment by it of the dues of the other entity. There have been whispers that the move against this company was taken on the instance of a former Finance Minister, who wanted to both destroy an exchange competing with a favourite of his, as well as to protect the parties guilty of default…”

It is also interesting how the Congis and PC, in particular, made life for the scamsters a lot easier by tweaking the bank security systems. The Congress govt let go a more secure but cheaper security system in favour of a “Finacle” by Infosys that cost some 25 times more at 1000 crores and with some 1000 more holes in it. I wonder if “Finacle” stands for “Financial Debacle”. The managers of PNB in Nirav Modi scam had access to all the security systems:
The NDTV saga is all the more alarming and starting to become a joke with ModiSarkar looking scared to even touch them. Prannoy Roy now writes letters to the PM claiming Subramanian Swamy exposing their frauds will “hurt India” and damage “freedom of Press”. NONSENSE! NDTV is a fraudulent, anti-national entity that neither stands for India nor for any journalistic ethics or freedom. But I have no doubts that this FIPB crap is not some investment issue but is an outright fraud. I also have no doubts that a lot of kickbacks would have gone to those who allowed this money-laundering. Anyone can easily guess whose funds NDTV was laundering:
 
In the Nirav Modi episode too a lot of Congis are linked – from Pappu to Sibal to Abhishek Singhvi. PM Modi may not be personally corrupt or dishonest in anyway whatsoever. Nobody ever questions his integrity. But all these incidents and many more that are yet to come out do question his moral authority to talk endlessly about the “Fight against corruption”. There is something else that ModiSarkar could have done, apart from the SC-demanded SIT on black money.

At the beginning of his term, PM Modi should have ordered all PSU banks to send in a list of all defaulters of over some amount (say 10 crores or so). All of these people put together may not have exceeded one lakh in number. Scrutiny of this small population is not difficult for a govt committed to put away scamsters. Had ModiSarkar done this and acted on defaulters then many continuing scams could have been averted and many corrupt banks exposed. Even during Demonetisation many banks and managers were found carrying out fraudulent acts and recycling black money for bigwigs.

Who knows, maybe ModiSarkar did have the list of all the defaulters and scamsters. But may the FM and the FinMin decided to turn a blind-eye for the reason that a large-scale crack down might see job-losses and shutting down of many business units. That was a risk worth taking at the start of the term of ModiSarkar than seeing unemployment rise and units shutting down even otherwise at the end of four years of BJP rule. Under Congress, India had become a Scamsters Paradise and none of the scamsters have lost anything under ModiSarkar either. The only real fools are the little people who have to face rejections by banks for small loans or inquiries by the IT department or other departments. Continuance of the scamsters paradise will only produce more scamsters, not end corruption and frauds. Nirav or Mehul are nothing in this whole game.



27 comments :

  1. "Ek machhar aadmi ko hijda bana deta hain" - Arun Jaitley did the same thing to Modi govt. Of course, Modi pick his own machchar.

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    1. Dear Truth Speaks,

      Its easy to say filmy dialogues but not easy to provide Good Governance & Growth all the while exposing corrupt system which has been fed well for 6 decades.

      Let's start from running a party & a Govt which promised Acche Din & scam free administration.

      Do anybody believe that a Party can run without donations from people like Choksi & Mallya ?

      Do anybody believe that a Govt can keep putting scamsters in Jail on a daily basis & yet get investments from the likes of same people ?

      So basically, it's a tricky game. Modi has been working on creating a better financial environment but cannot do much about the already existing black sheep's in the system. He can ensure no more fradulent loans are given by Banks but what will he do with the existing 8 Lakh crore NPA's ?

      I think he has choosen to look forward than to look behind. He has been successful in making many new amendments & bills against corruption & will continue but we should not except him to cut his own feet by taking on the Rot all by himself. He is not some film hero but a great politician.

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  2. Chilling. I don't see any government in the near future even tackling corruption.. It's entrenched in the system and everyone is in it together. If Modi doesn't, nobody will and his loss of credibility could prove very very costly for India and a Roman Holiday for the famili

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  3. Ravinar Nails again.. Here is more to suspect...
    https://youtu.be/q6qMhXlarJQ


    Hear from an Ex Corporation Bank Veteran Mr Venkatesan, about Software which UPA via RBI mandated to change over to Infosys's Finnacle with heavy push from Oracle & Infosys is likely to be the Root cause for Such Loopholes without Entering Core Banking logging issuing LoUs and other problems..

    Earlier Version of Lasersoft across Globe runs with COBOL incl in India now Infosys's Finnacle opened the Pandora Box...

    That's why Infosys Narayana Murthy Nandan Nilenkani could go with UPA Government for Obligation of Finnacle .....

    Are heading for Collapse of Public Sector Banking because of Finnacle whose annual maintenance costs runs over ₹20000 Crores than Earlier COBOL based Lasersoft System of only abt ₹1000 Crores maintenance costs annually ?

    Evil of Computerisation deliberately having loopholes in software coding to benefit Narayana Murthy Nandan Nilenkani et all folks (both are close to Congress) so that Politicians loot public sector banks?

    Are we Indians in for rude shock??

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  4. COBOL is a primitive program. Naturally you need to update to the modern RDBMS like Oracle. Not championing Finnacle. But when a govt. minister leases treadmills at more than MRP rate, Finnacle comes as no surprise. NPAs and other banking scams are coming out which in itself is a positive sign. Nirav-Choksi are just the tip of the iceberg. There is more to come and it will be projected as action paralysis if no action was taken or projected as vendetta if action was taken. It's going to be a no win situation for Modi. I guess the outside layers are one by one getting removed and we will crush the untouchable center core(like sonia, rahul, priyanka & vadra) during the next tenure. Atleast that's what i hope. Just a thought, i don't think Modi can act like Yogi and flush out criminals. In Yogi's case it is one state and the state people would be benefited from the honest corrective measures. In Modi's case we are talking about entire country whatever affects north doesn't have any impact on south. Moreover the action will be twisted and given a different color and adverse meaning in south. We can only speculate or provide hind sight analysis. Its tough being us,the common citizens. The only relief is the knowledge that there is no better person than Modi to lead the nation now and we have rightly put our trust in him.

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    1. Agreed. Modi cannot act like rajni to the expectations of the common man. System is absolute corrupt and full of deadly snakes everywhere including our own friends and families who want to make a fastbuck howsoever. One by one layer has to be peeled off. Five years is nothing for doing that. If modi knows what he is doing , then we should see a better india after 2019 hopefully.

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  5. This comment has been removed by the author.

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  6. Good Article. Truth of FINACLE CBS is out in public. Always wondering why nationalised banks e-banking sites are always sluggishs as compared to private banks. Need to investigate Infosys for GST debacle too.

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    1. Already a criminal complaint has been filed in Mumbai against GSTN and its non-working. A simple tool such as launching an e-waybill system proved to be a non-starter.AJ has handled GST and GSTN ham-handedly and the result is ,businessmen, economy and the general public are suffering

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  7. Empty vessels make a lot of noise. Their credibility is eroding. Sad if not disastrous for the country as the ecosystem will have prevailed. Hopes dashed.

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  8. Que is why NaMo is not acting again AJ... Is AJ is more powerful than him? Time is running...

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    1. In today's govt offices, most times, a clerk will be politicaly stronger than a Executive or Chief Engineer. he cannot be touched. Else, the clerk fellow will crush and flush.

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  9. Looks like Modi spends time smelling his tea

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  10. both or two sides of the same coin...action is same inaction...instead of 'in' action.... inaction and overaction...

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  11. BJP including Narendra Modi are hand in glove with Khangress in all these scams. Do not see any reason why any country can insist on protecting the names of criminals, rapists & looters ?, unless BJP & narendra Modi have colluded & robbed the nation.

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    1. Ya Ya Duffer,

      So what's your solution ? To bring Congress Back for next 60 years & allow India's complete destruction ? or bring the "Sab Mile Hua hei lunatic ? or jehadi Mumtaz ? or forever PM in waiting secular's like Mulayam or Sharad Pawar ?

      ou people don't want Hindus & Hindustan to develop even in future & NAMO dosen't suit your agenda. He brings Demonetization, he brings tough Black Money Laws, He brings Insolvency Code, He brings RERA & you people oppose him. Then when someone runs out of India because of fear or arrest you want NAMO to be kicked out ? Shameless bastards.

      You people cannot fool India by turning Hindus against Hindus anymore. You people care two hoots about corruption as far as Hindus face annihilation.

      Delete
  12. Hats off Sir,A thorough analysis of what ails the Banking system in our country. AJ is a millstone around the PM's neck. The sooner this millstone is cast aside, the better it will be for this govt.

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  13. The glaze in Mr Modi has faded.Why do we blame Mr Jaitly n not Mr.Modi who is believed by the Indians as a strong non corrupt leade? He should have to take the blame.He seems helpless, may be black mailed by his powerful colleague,big business men.Will his tenure end in disaster?

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  14. The loot and plunder of this country is continuing unabated. People have become even more emboldened to rob this nation. Every institution is corrupt to the bone..None of them inspire any confidence. As a honest taxpayer, I do back-breaking work and see almost 40% of my income go as direct taxes. Given that taxes are paid on every commodity purchased, the total taxes (direct and indirect) paid by me would be something like 60% or more of my income.

    I get zero benefit.. Government schools, hospitals and government transport systems are a joke.. So we are forced to depend on private sector for these; resulting in even more outflow from your income.. and you helpless watch the nation being gang-raped by a bunch of crooks.

    Not one of the scamster is behind bars. All are walking free cocking a snook at an impotent system.

    We are becoming a banana republic.. Very soon we need to prepare ourselves for a massive civil war as 500 Million people cant afford 3 meals a day while 1% of population has ripped off this nation. Cry my country.. Cry

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    1. very true, give 100% and look at the sky....

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  15. I am still wondering how AJ continue in his position. Bewildering.

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  16. We all want Modi to bring back each and every Rupee of black money back. What are Modi's option? We are not even one fifth as powerful as America. Still America just could not do much about the black money. There are countries whose entire economy depends on the banking system which stores black money from around the world. They are not going to ruin their own country because some candidate promised to bring back black money. Just look. Donald Trump promised to build a wall and Mexico would pay for it ! A third world country, Mexico said, not a Dime ! What Trump can do? Go to war with Mexico? Now yes, Modi did promise to bring back black money. If that promise bought him a few millions more votes. So what? Now he can use his position and do what he can, that is provide electricity to thousands of villages, provide gas cylinder to millions poors. The countries hoarding our black money are not dependent on us enough to influence their behavior.

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  17. >> PM Modi may not be personally corrupt or dishonest in anyway whatsoever. Nobody ever questions his integrity.

    What's the sample size? Maybe you need to ask more people.
    Ravinar, it seems you're still drinking the sand. Do you really believe that Modi is totally unaware of everything and Jaitley is running the govt? Modi is good at only one thing and that is PR. His entire campaign was funded by the Ambanis, Adanis and Modis. BJP and Congress are two sides of the same coin. They and their cronies will rob the country dry while distracting the common people with talks of bullet trains, Ram mandir, triple talaq and giving "muh tod jawab" to Pakistan and China.

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    1. Ya Ya Duffer,

      So what's your solution ? To bring Congress Back for next 60 years & allow India's complete destruction ? or bring the "Sab Mile Hua hei lunatic ? or jehadi Mumtaz ? or forever PM in waiting secular's like Mulayam or Sharad Pawar ?

      ou people don't want Hindus & Hindustan to develop even in future & NAMO dosen't suit your agenda. He brings Demonetization, he brings tough Black Money Laws, He brings Insolvency Code, He brings RERA & you people oppose him. Then when someone runs out of India because of fear or arrest you want NAMO to be kicked out ? Shameless bastards.

      You people cannot fool India by turning Hindus against Hindus anymore. You people care two hoots about corruption as far as Hindus face annihilation.

      Delete
    2. AAP baboon spotted. I think you f*ckwits should stop blabbering about corruption and black money - your Queen Kejru is about as corrupt and immoral as it's possible for any human being to be. Would he even try to solve any of the country's corruption and black money problems? Hia only concern would be to elevate himself to Dictator and prance around wearing diamond-encrusted crowns, pure silk saris and solid gold chappals while his brainless goons run around causing trouble.

      Stick to behaving like mindless thugs, it's all you people can do.

      Delete
    3. @krispy and @abhijeet. Never go full retard. Your families have my sympathy.

      Delete
  18. Why should we expect Modi alone to catch the culprits?. Isn't there one upright person in position to stir the cauldron?. During the FRCA bill I heard that Videocon owed banks about Rs.4800 crores. This has not come out as a sequel to the Nirav Modi case. Why?. And whatever scams have come to light, there has not been so much of conviction. So who will get scared?. India stinking, not shining.

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