With so many mega scams involving the VIP politicians, the intensity and spread of these scams remain largely unnoticed and underrated by the polity. A quick look at these mini scams reveal that a new class of middle-level bureucracy, mostly in 45 plus, have emerged to make best out of their last decade of service. They do it their own or with the connivance of the higherups or politicians.
It is not easy to define these scams in terms of regions or political parties under whom they flourished. They cut across north-south divide and under both the Congress and opposition parties. At the Centre, we have the medical, ITC and leprosy fund scams. The dental college scam in Karnataka under S Bangarappa, Ayurveda scam in UP, cremation shed scandal in Tamil Nadu, police uniform scandal in Orissa and Bituman scam in Bihar. The fodder scam has already assumed national proportions.
Eruption of mini scams in such a large scale can be attributed to the new economic and political climate since 1991. An impression has been created that scams are part of the new economic culture and it is tolerated to some extent. Even the counter clerks complain openly that people decline to them some gratification when big fish loot cores. Such attitudinal changes apart, the first half of 1990s had also witnessed a distinct loosening of the control by the ruling party on its leaders. Indira Gandhi had her own establishment to keep a watch on her colleagues and bureaucracy. Both intelligence agencies and political channels were used for this purpose. Unauthorised amassing of wealth by party leaders and officials were frowned down on severely.
Fear of madam acted as a great restraint in party and down the bureaucracy. Though there was some relaxation under Rajiv Gandhi those around him was able to retain the setup more or less intact. But when Rao took over the party, he was initially keen to demonstrate his consensus credentials which included free airing of views by partymen.
In an atmosphere where the big brother is not watching, it was taken as a free-for-all. Vigilance agencies became relaxed. The middle-level bureaucracy, which has been watching the plethora of scams from such close quarters, might have thought they too should not miss the opportunity. This has been the genesis of the mini scams at the centre and states. The Delhi High Court recently set up two panels to investigate two different aspects of the medical scam involving evasion of duties on import of clinical equipment. The petitioner had alleged that in all Rs 5,000 cr was lost to the exchequer in this scam, which was based on a 1988 decision to exempt medical equipment from import duties.
, provided they were for the use of charitable hospitals.
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According to the case, officials in union health ministry, DGHS, customs and state and union territories had colluded in the economic offence by providing fake certificates for the import relief. The purpose of one of the panels is to find out how the lost amount could be recovered from those benefited from the conspiracy.
The leprosy fund scam, which is under CBI probe, is a crude kind of white collar offence. The WHO had granted Rs 300 crore for leprosy eradication in India, which accounts for a high proportion of the incidence of the disease. The CBI has registered a case against deputy direactor-general of health services and fe others for criminal conspiracy. The accused had opened a bogus account in a Delhi bank and diverted more than Rs one crore into it between 1991 and 1993.
Bihars bituman scandal is too known to be narrated. The modus operandi has been to show higher purchase of bituman by the Bihar government whereas the real use had decreased over the years. The total loss to the state government by way of such fake purchases is yet to be worked out. But it runs into several hundred crores.
In neighbouring UP, the CBI is in look out for the culprits in a Rs 32 crore Ayurveda scam. Residences of Shiv Raj Singh, director of ayurveda and unani departments of UP, have been raided and arrest warrants issued against him. Funds have been misappropriated through purchase of Ayurveda drugs by way of fake bills and allotment letters. Amassed assets worth crores have been discovered by CBI from those involved.
Recently, Orissa high court has taken suo motu notice of the alleged misappropriation of crores of rupees in supply of police uniform and other articles for the state police department. The court has, on its own, engaged a eminent advocate to assist it. According to the allegation, orders for huge supplies were placed with a particular cloth dealer. A similar uniform purchase scandal has also been reported from Bihar where a senior central police officer is being charged with offence.
On October 14, the CBI had filed chargesheet against former Karnataka Chief Minister S Bangarappa and five others in a dental college case. The chargesheet which lists 202 documents, says that Rs 10 lakhs had changed hands for the permission for setting up the college. Apart from Bangarappa, a former health minister and jail minister were charged with taking a premium of Rs 29 lakhs and Rs 5 lakhs respectively.
In another case, a former Madurai collector and two others were arrested for a cremation shed scam. It was alleged that the collected acted in collusion with the then minister to favour certain firms in the construction of cremation sheds for dalits.