Tuesday, November 30, 2010

What Rajatthi Ammal got for keeping Maran away from Telecom dept.

Just one shred of what Karunanidhi's  family gained in the Spectrum scam is being revealed here in the taped conversation between, Radia, Ratnam who is the auditor for Rajatthi ammal, the third wife of Karunanidhi and Rajathi Ammal herself. This information is part of an article on how Rattan Tata is not clean as he claims to be. The whole article can be read here:



The taped conversation in which Rajatthi ammal appears is to do with a pay off by the Tatas, for her (Karunanidhi's) help in keeping Dayanidhi Maran off the Telecom department in the UPA II.

Let that be so. But in my opinion, that unholy dealing by Tata was in a way a  reaction to the unholy way of functioning of Maran in UPA I.

Maran was totally autocratic in his stint in the Telecom Dept, doing everything for the SUN network owned by his brother (and Himself?). Genuine aspirants like the Tatas were kept off at that time. The corruption of Maran must also be brought out. When other business people were marginalized, they had waited for the time to keep Maran out and get things done for them. This war has been started by Maran. An article by Dr S. Gurumurthy in the Indian Express published on May 2, 2006 must be recalled here to know how Maran behaved those times. The article can be read here :


The Tata's complicity in corruption at telecom can not be analyzed without bringing Maran also under the scanner.



The conversation is between Ratnam, Chartered Accountant of Tamil Nadu Chief Minister M. Karunanidhi's third wife Rajathiammal, Rajathiammal herself and Niira Radia. The conversation took place on June 13, 2009, more than three weeks after the UPA II Cabinet had been formed and A.Raja had been successfully planted as the Telecom Minister and Dayanidhi Maran, was kept out, as desired by Ratan Tata and also Mukesh Ambani, as conversations of Radia with others clearly indicate.


Following is the full text of the conversation between Ratnam/Rajathiammal and Niira Radia:


Ratnam to Radia: Hii morning Madam.

Radia to Ratnam: Hii, hii, uhh uhh

Ratnam to Radia: Madam(Rajathiammal, third "wife" of Karunanidhi and mother of DMK MP, Kanimozhi) baat karna chahti hai, de doon?

Radia to Ratnam: haan haan, please ok,(whispers to someone nearby— Karunanidhi ki patni)— call is being transferred, (she takes a deep breath) call connects— oh I am so sorry, hello how are you(very sweetly indulgent)?

Rajathi to Radia: Hello, I am fine, how are you(in english)?

Radia to Rajathi: I am so sorry, I have not been in touch, I am busy! How are you?

Rajathi to Radia: am fine.

Radia to Rajathi: Yeah, keeping better?

Rajathi to Radia: ummm

Radia to Rajathi: Good, good, good. How is CM(Chief Minister M.Karunanidhi)

Rajathi to Radia: (mumbles) aahhh, —ok.

Radia to Rajathi: (tone is still sweetly indulgent), good, Kani(Kanimozhi), Kani, I met last week, I didn't meet her this week. Kani is in Chennai?

Rajathi to Radia: ahh yes.

Radia to Rajathi: Shes come no? How are things?(Rajathi mumbles again, clear she is not comfortable talking English), good. How are things?

Rajathi to Radia: mumbles something inaudible

Radia to Rajathi: Haan?(silence for sometime)

Rajathi to Radia: what happened?

Radia to Rajathi: (voice turning anxious) to?

Rajathi to Radia: aaahh

Radia to Rajathi: Tata?

Rajathi to Radia: ah, yes

Radia to Rajathi: (very anxious)not done?

Rajathi to Radia: no, not done( voice low )

Radia to Rajathi: Ratnam is there?

Rajathi to Radia: Yes.

Radia to Rajathi: I will talk , let me speak to him. I thought it was all done

Rajathi to Radia: (voice low) yes, ummm( hands over to Ratnam)

Radia to Ratnam: Hi Ratnam( tone changes, more authoritative)

Ratnam to Radia: Hi Madam

Radia to Ratnam: What happened its not done?( anxious indignation in the voice)

Ratnam to Radia: No Madam, it s not done(??). I just give you a message, no madam.

Radia to Ratnam: I didn't get a message.

Ratnam to Radia: Madam?

Radia to Ratnam: I got a new mobile, I thought you got my mobile. You don't have my new mobile number?

Ratnam to Radia: I am talking to you on that mobile only na? Same mobile he(?) also tried no.

Radia to Ratnam: No, no, this is my regular mobile, the other one, my indicom, my indicom(she gives the number)

Ratnam to Radia: no, this(new number) has not been given to us.

Radia to Ratnam: I had told Cecilia(Personal assistant to Krishna Kumar, Director, Tata Sons, and one of key aides of Ratan Tata, and also Chairman, Tata Realty and Infrastructure Ltd.) last week itself.

Ratnam to Radia: You know Cecelia(?) is totally last one week , not in touch.

Radia to Ratnam: no, no, I will tell you why. Her mother's is in hospital.

Ratnam to Radia: yeah, that I know.

Radia to Ratnam: She's been very sick. So that's why Cecilia has been a little problematic.

Ratnam to Radia: ummm, ummmm. But you said no, you yourself has done.(Radia—yeah!), But that has not come. That's why I sent a message to you.

Radia to Ratnam: (short silence) I cant believe it, is it?(Ratnam—yeah madam, yeah madam) That can't be possible( anxiety in her voice)

Ratnam to Radia: No mam, it(?) has not come.

Radia to Ratnam: (short silence) What about Tatas? Whats happening on that?

Ratnam to Radia: Mam, Tata everything's ok, but this rent 50 percent, yesterday I got a mail, that's why yesterday also I tried you.(Radia—haan) This agreement, they say that 50 percent of the rent has to be paid by us. So I have already sent a mail to Krishna Kumar(Director, Tata Sons and key aide of Ratan Tata and Chairman, Tata Realty and Infrastructure Ltd.) stating that its not possible. Then I made a call to Krishna Kumar, he did not picked up(sic) and then I called Sanjay Ubhalia(Managing Director, Tata Realty and Infrastructure ltd) (Radia—haan). He says that he will take up the issue with Krishna Kumar and sort it out that(sic).

Radia to Ratnam: No, but when you were in Bombay, it was agreed that no rent and—

Ratnam to Radia: Everything was clearly agreed and Krishna Kumar also said that he will talk to Voltas(a Tata Group company) and he will waive that. But yesterday I tried ten times to call Krishna Kumar and he didn't pick up, and he was in a meeting it seems.

Radia to Ratnam: No, No yesterday there was a board meeting of Indian Hotels and the annual results were being announced, and also they were in the middle of buying Sea Rock Hotel in Bombay, you know? (Ratnam—ummm). So that's why it was very difficult to reach him yesterday.(Ratnam—-yeah, yeah)

Ratnam to Radia: yeah, yeah, that's why I called you , I want to tell you this yesterday.

Radia to Ratnam: No, I will speak to him, ahh Ratnam, I will speak to him Monday, because you know today he is not there, he has gone with the Chairman(Ratan Tata). I hope he hasn't gone, he was supposed to travel to the US today(Ratnam—who mam?), Krishna Kumar was supposed to travel to US today.

Ratnam to Radia: No mam, only one day, Thursday only he come back, na madam?

Radia to Ratnam: No, no, he has gone again. He is going with his Chairman today. (Ratnam— is it mam?), Yeah, yeah, he was scheduled to travel this morning by Air India(Ratnam—oh!), let me check, le me check. I will have a word with them. But then I am surrrprised!

Ratnam to Radia: Yes, Mam, that's why I am repeatedly calling Cecilia, and that mobile is totally switched off.

Radia to Ratnam: ummmmm ahhhh, let me talk to her. I will talk to her annnddd, you got my other number na?

Ratnam to Radia: I got your number, that number is what you are talking now na?

Radia to Ratnam: yeah, yeah, do me a favour Ratnam. Give me a missed on that number from your phone. (Ratnam— yeah, yeah) You don't have any other phone Ratnam?(Ratnam—I have Madam) Give me a missed call from that number na, which is— (gets disconnected) 





The issue being discussed in this conversation becomes clear when one peruses the Internal evaluation report of the Directorate General of Income Tax

( see

http://indiasreport.com/magazine/data/the-radia-papers-raja-tata-ambani-connection/ )

 wherein the report clearly states:


3. Tata through Voltas(a Tata group organisation) is in touch with Niira Radia and Ratnam, CA of (Rajathi)Ammal, wife of (Chief Minister) M.Karunanidhi,. They are apparently going to construct a building in Chennai on a land controlled by "TRIL" (Tata Realty and Infrastructure ltd.) with the Karunanidhi family as a payoff to DMK for keeping Maran out of Telecom(ministry).


Friday, November 26, 2010

Sonia hides money, but Priyanka hides face!

An open allegation that Sonia Gandhi and her sisters have received 60% of the looted money in the spectrum scam has been made by Dr Subramanian Swamy in his letter sent to the Prime Minister on 24th November, 2010. The letter is being reproduced below.
A detailed article by the former IAS officer, Mr Sundaram, on this accusation can be read here:- http://ennapadampanchajanya.blogspot.com/
Readers can also click the link at top of the right side bar of this blog, titled “Subramanian swamy” to read more about the allegations.

What was being talked in close circles has now come to the open.
Sonia has a mountain to hide, it seems.
But the congress clan can not survive without a Gandhi name.
They had hopes on Rahul Gandhi whose stock is also disappointing – particularly at the current juncture.
I expect them to troop around Priyanka Gandhi Vadra and might even decide that it is the right time for her to enter active politics.
The Spectrum joke that was doing rounds might become a reality soon in the latest era of 3-G series – Soniaji, Rahulji and Priyankaji. 

If it happens then it means a long term plan coming to fruition.

I have  a doubt on Priyanka  from an angle which I thought was not decent to talk about.
But after reading the letter of Dr Swamy, I thought I can share my doubt with the readers.

 Look at this video on Priyanka's childhood / growth.
In this 6-24 minute video, what you see until 3-59 minutes is the original face of Priyanka.

Some are reproduced here.

And NOW 

The nose has been restructured at the bridge and at the tip and looks like this now.

Priyanka originally looked like her daughter with a depressed nose bridge and protruding teeth. She is not what she is now seen.

It is clearly seen that she has done a nose job and an orthodontic correction of her teeth.
I am not commenting on that. 
But remember the first time we (the public) were introduced to her photos and presence in the public?
How everyone talked that she resembled Indira Gandhi. 
Particularly the nose and hair cut brought back memories of Indira Gandhi - it continues even today!

See this recent report from
and the pic.

Titled as “Priyanka Gandhi – The new Indira?”, the report says,
“When Priyanka Gandhi appeared at the prayer service on her father’s 66th anniversary on Friday, sporting a hair-style that bore an uncanny similarity to that of her late grandmother Indira Gandhi, people couldn’t help but marvel at how strikingly similar the two are.
Not just her hairdo, but even her features and her gait reminds many of the elegant and poised former Indian Premier”.

And this report from

Ever since Priyanka Gandhi hit her teens in the mid 1980s, people have wondered if she looks like her late grandmother and former Prime Minister, Indira Gandhi. On Friday when Priyanka turned up sporting a green cotton saree and a new curly hairstyle to pay tribute to her late father, Rajiv Gandhi, on his birth anniversary, there was no doubt left.

The 38-year-old daughter of UPA chairperson, Sonia Gandhi, bore the most stunning resemblance ever, to her grandmother. Style experts say it’s the new hairdo that’s done the trick.

“Priyanka’s new longer, softer curls are identical to Indira’s. She also shares her features, and her gait with her grandmom,” says designer Ritu Kumar.

Hairstylist Habib Ahmed, who used to style Indira Gandhi’s hair, says
, “There’s a huge resemblance now, because of the new style. The texture of Priyanka’s and Indira’s hair are actually quite different. Also, Indira had a wedge cut, while Priyanka’s is a five line hair style. But, because both have a really sharp nose and similar face cut, the look seems very similar.”

Beauty expert Blossom Kochhar
says, “With her new curly look, Priyanka’s looking absolutely like Indira. When she will get older, if she decides to add that trademark grey streak that Indira had, she will totally look like her. She’s the softer version of Indira Gandhi.”

(end of report)

Even educated people can be easily attracted to compare her with Indira.
The wiki article also does that.
But her original face had no such resemblance to Indira.

It is well within her right to have any kind of facial restructuring she wants.
But if the outcome is to resurrect the image of Indira, then I wonder if it was a planned one - rather a kind of strategy that would be an asset when she enters politics.
If the family has a long term plan, then this is very much a planned one.

If things become difficult for Sonia Gandhi, it is very much possible that Priyanka will be roped in.
Again the country is going to be mesmerized by a family that has a personal agenda.

- jayasree


Dr Swamy’s recent letter :-

November 24, 2010.

Dr. Manmohan Singh,

Prime Minister of India,

South Block,

New Delhi.

Dear Prime Minister:

You may by now have realized that the 2G Spectrum scandal is not only bad for the country in the dimension of corruption, but now it emerges that there is a national security dimension too. The RAW, IB, CBI, ED all have enough material which they may have placed before you regarding the dubious aspects of the principal player in this scam.

According to my information two sisters, Anushka and Nadia, of Ms Sonia Gandhi had received sixty percent of the kickbacks in this deal i.e. Rs.18,000 crores each. The frequent travel of Sonia Gandhi and her immediate family to Malaysia, Hongkong, Dubai and parts of Europe including London requires to be probed under the law. What requires your special attention is the mode of the travel, not by commercial airliners, but by jets provided by the corporate sector which itself is illegal under the DGCA Rules. I find that often Ms. Sonia Gandhi and family have traveled to Dubai and then traveled onwards on private jets provided by dubious Arab business interests to Europe. It is not clear on what passport they have traveled. In Dubai they were felicitated by agencies of countries which are hostile to India including that of Pakistan.

You can no more not take a stand when evil is permeating in the country in the form of terrorism, religious conversion and demographic infiltration. The ill-gotten money in billions of dollars equivalent, the money laundering and Participatory Notes have all undermined our national integrity. The time is come for you to take a stand.

I am familiar with the information and data with our intelligent agencies. I also know that you can seek cooperation of other countries especially the United States in pooling information especially from inter Intelligence interaction that take place regularly. I hope therefore you will rise to the need of the hour and take effective steps to set right the sorry state of affairs in the country caused by overtly and covertly resident foreigners. In this connection I would like to meet you at the earliest. My Secretary will be in touch with your Secretariat to fix a time.

Yours sincerely,


Thursday, November 25, 2010

Let Tamilnadu go the Bihar way!


The severe blow to the Congress in the Bihar Assembly elections has set the tongues wagging in Tamilnadu. The news is being received by the DMK with relief that Congress can not afford to sever its ties in the ensuing elections in Tamilnadu. This talk is yet another proof of unholy collusion between the Congress and the DMK that they can not afford to dump each other. The DMK thinks that it can win the election with Congress in alliance, no matter what the 2G spectrum scam could mean to the electorate.



This has two implications. (1) The Tamilnadu electorate are fools who won't buy the mega-corruption charges (2) Even if the electorate are hostile, it is possible to twist the election results with EVMs and cash- for- votes.



It also implies that if only Congress remains with the DMK, these two (EVM manipulation and cash-for-votes) can be done happily – without any hitch, as was done in the last lok sabha elections.



Earlier it was speculated that Rahul Gandhi has a 'formula' for Tamilnadu – of going alone in the polls or heading a third front. Since the same Rahul- formula has not worked in Bihar, the DMK thinks that the Congress can not afford to dump it. Echoing this thought, Karunanidhi spoke yesterday that if they (congress) want, he is ready to part. Actually what he told was raking up the issue of State Autonomy if Congress insists on a "share" in the name for the welfare schemes done in the State. But what he talked sounded with a hidden meaning.



His talks bordered on a thin line from which we can deduce that he was challenging the Congress to break the alliance. He was there in the acts of shady collusion because the Congress wanted him. The share was 1:2 between the congress and the DMK. The Congress can not question why he has more. He has arrived at 2 by including the one part of the Congress, which means originally it was 1:1 only.  He also claimed that he is not weak in calculations. This speech was originally directed at EVKS Elangovan, who accused Karunanidhi of taking credit for central funding and central schemes and claiming them to be his achievements.



As per EVKS Elangovan, the share of funds between the centre and the state was 3:1.

(read report:- http://www.thehindu.com/news/states/tamil-nadu/article554058.ece )

Karunanidhi directing his ire on Elangovan on the share of funds talks about a different ratio (1:2). When you read with this background information, whatever Karunanidhi talked as a reply to Elangovan yesterday, conveyed some other meaning.



Does he say that he was with the Congress because Congress wanted it?


Does he mean that Congress can not question him for a larger share and therefore can not think of shedding him off?


Because if it does so, it would be like cutting the child into two – a judgment given by Solomon – that would hurt the original mother more (Congress) than the other (DMK)?  So that it would be better for both of them to be silent on the issue (Scam) and try not to irk the other?


If the Congress prepares itself for the judgment of Solomon, Karunanidhi has no problem. Because it is Congress which is going to suffer more in the melee – nationally, the first blow has already been felt by it in Bihar.


Somehow I think that this is a subtle message to the Congress by Karunanidhi, which is comparable to the loud message that Jayalalithaa gave through Times Now interview.


It is catch-22 situation for the Congress.


It can not go with the DMK nor can it come out of the DMK. It would hurt in both cases.


In normal circumstances any party in the place of Congress would sever its ties with the DMK, after all that has been revealed in the Spectrum scam. Any other party in its place would have joined hands with others and distanced itself from the DMK.


But the Congress did not do that.


Karunanidhi's talks also reveal that the Congress can not afford to do that.


If it does, it would be like allowing the child to be cut apart, as told by King Solomon in the fable. None (DMK and Congress) would be benefited by that judgment (of cutting the child into two).


If Congress goes with the DMK, it has to stay with the stigma of keeping company with the corrupt.


If it comes out of DMK, the DMK would not hesitate to reveal Congress 'hand' in the scam.


They have to be together. Incidentally Karunanidhi sited this togetherness of the two parties as an example to emulate while blessing his grandson (Alagiri's son) on his wedding.


Karunanidhi thinks that they can resurrect their rule once again through their dubious ways if they remain together.


But Bihar must give him another message too.


If Biharis themselves could say yes for development and no for corruption, will the Tamilians lag behind?


Already Karunanidhi has succeeded in making Tamilnadu another Bihar.


For a change let Tamilians also behave as Biharis.


Let the national mood on anti-corruption, guide them in the ballot box.


Let the Congress remain firmly with the DMK – so that the people would be continuously reminded of their mega loot atleast until they reach the polling booth.







Congress Bihar loss may be DMK gain

The stunning victory of Mr Nitish Kumar, who made the Congress bite the dust in Bihar, has come as a relief to the ruling DMK in Tamil Nadu, say party sources here, as the Congress would not take any adventurous steps like "going it alone" for the ensuing Assembly polls. Mr Kumar's victory has come as a boost for the DMK since it believes that its welfare schemes would help in retaining power like "good governance" had helped the Bihar chief minister.



However, the anti-DMK camp in the Congress which believed that Mr Rahul Gandhi's magic would work in TN seems to be shaken up by the Bihar poll result. If not overtly, the ruling DMK is enjoying the victory of Mr Nitish Kumar rather quietly as his spectacular win has strengthened its case in two angles: A tamed Congress will remain in its fold and the DMK, too, can bank on its performance for a victory.



"The recent elections of Bihar, Andhra Pradesh, New Delhi, Orissa and Madhya Pradesh have proved that the ruling party could overcome antiincumbency factor if it delivered good governance. In Tamil Nadu, undoubtedly, we have provided a welfare government, which has taken care of every section of society," said a senior DMK minister.

With the possibilities of Mr Vijayakanth's party going with the AIADMK growing, the DMK could not afford if the Congress decided to go it alone or led a front as wished by an anti-DMK section led by E.V.K.S. Elangovan.



"We hope the Congress takes its lessons from the Bihar elections and behaves as a committed ally," said a top DMK functionary.


But the AIADMK offers a counter view. "On governance, the DMK's performance in managing the power crisis, law and order is a colossal failure. In fact, the DMK has to take a lesson from Bihar: voters have decisively rejected Lalu Prasad's family politics," remarked a former minister.




Don't make us rake separate statehood: CM



Countering the allegation levelled by some Congressmen that the ruling DMK was stealing credit for the Centre-funded schemes implemented in the state, chief minister M Karuannidhi on Wednesday reiterated that he always insisted on the need for a cordial Centre-state relationship for better execution of welfare schemes in the state.



Dedicating the Semmozhi poonga to the public, Mr Karunanidhi, while seeking greater Centre-state cooperation for successful implementation for all schemes, wondered whether they (Congress) want the DMK to rake up the separatist (separate TN or Dravida Nadu) demand of the past. Recalling the popular separate TN demand made by the DMK during Anna's regime, he said the party shelved the separate state demand only after they (Congress) promised coordination and fair share to all states for development. "If you (Congress) think that it is not good to stay united, tell us. We will think about it," Mr Karunanidhi said.





சேர்ந்திருப்பது தீது என்றால் யோசிக்கிறோம்: முதல்வர் அதிரடி


சென்னை : ""முன்பு நாங்கள் தனியாக இருக்கத்தான் எண்ணினோம். நீங்கள்தான் சேர்ந்திருக்க வேண்டும் என்று சொன்னீர்கள். இப்போது சேர்ந்திருப்பது தீது என்றால், சொல்லுங்கள்; யோசிக்கிறோம்,'' என்று முதல்வர் கருணாநிதி பேசினார்.


சென்னையில் நேற்று நடந்த வேளாண் அலுவலர்கள் மாநாட்டு நிறைவு விழாவில், முதல்வர் கருணாநிதி பேசியதாவது: தென்னகப் பகுதி, தமிழக பகுதி, வடக்கே உள்ள பகுதி ஆகியவை கலந்த ஏக இந்தியாவில் நாம் இருக்கிறோம். நாட்டின் ஒரு பகுதியில் இருப்பவரை வளர்த்து விட்டுவிட்டு, ஒரு பகுதியில் இருப்பவரை தாழ்த்தினால், அது ஏக இந்தியாவாக இருக்க முடியாது. மாநிலம், மத்திய அரசு என்பது என்பது நிர்வாக வசதிக்காக பிரிக்கப்பட்டது. இது பேதங்கள், பிளவுகளுக்காக அல்ல என்பதை அரசியல் சிந்தனையாளர்கள் மறந்து விடக்கூடாது. தமிழக வேளாண்துறை வளர்ச்சியில் மத்திய அரசின் பங்கு இருக்கிறது; மத்திய அரசின் திட்டங்களில் மாநில அரசின் பங்கு இருக்கிறது. ஒரு குழந்தையை நான்தான் பெற்றேன் என்று ஒரு தாய் உரிமை கொண்டாட முடியாது; தகப்பனுக்கும் உரிமை உண்டு.


ஒரு குழந்தைக்கு உரிமை கொண்டாடி இரு பெண்கள் சாலமன் என்ற மன்னனிடம் வந்தனர். யார் உண்மையான தாய் என்று விசாரித்து, அந்த மன்னன் தீர்ப்பளித்த பின்பும், அதை இருவரும் ஏற்கவில்லை. கடைசியாக, தனது வாளை எடுத்து குழந்தையை இரு துண்டாக்கி, ஆளுக்கு ஒரு பங்கு தருவதாக கூறினான். இருபெண்களில் ஒருவராக இருந்த போலித்தாய் சதி செய்ய நினைத்தாள்; ஒப்புக்கொண்டாள். அந்த குழந்தையை பெற்ற தாயோ, "என் குழந்தையாக இருந்தாலும், அதை அவளிடமே கொடுத்து விடுங்கள்' என்றாள். அவளைப் பொறுத்தவரை குழந்தை உயிரோடு இருக்க வேண்டும் என்ற எண்ணம்தான் இருந்தது. அந்த எண்ணம்தான் நமக்கும் இருக்கிறது. மற்ற முதல்வர்கள் சொல்வது போல், மத்திய அரசு என்று நான் சொல்லவில்லை; இந்தியப் பேரரசு என்று சொல்கிறேன்; நாங்கள் சிற்றரசுதான்.


நாங்கள் ஒரு சாதனையை, செயலை, திட்டத்தை செயல்படுத்துகிறோம் என்றால், அதில் மத்திய அரசுக்கும் பங்குண்டு. அவர்கள் எட்டு அடி பாய்ந்தால், நாங்கள் 16 அடி பாய்வோம்;அந்த எட்டு அடியையும் கூட்டித்தான் இந்த 16 அடி. தனியாக 16 அடி பாயவேண்டுமென அவர்கள் சொன்னாலும், சேர்ந்தே இருக்க வேண்டும் என்று நினைக்கிறோம். முன்பு நாங்கள் தனியாக இருக்கத்தான் எண்ணினோம். நீங்கள்தான் சேர்ந்திருக்க வேண்டும் என்று சொன்னீர்கள். இப்போது சேர்ந்திருப்பது தீது என்றால், சொல்லுங்கள்; யோசிக்கிறோம். இவ்வாறு கருணாநிதி பேசினார்.


ராஜாவை நீக்க வேண்டும் தி.மு.க.,வுக்கு யுவராஜா கோரிக்கை: இளைஞர் காங்கிரஸ் பாதயாத்திரை நிறைவு விழா நேற்று சென்னை காமராஜர் அரங்கில் நடந்தது. இந்த நிகழ்ச்சியில் பேசிய இளைஞர் காங்கிரஸ் தலைவர் யுவராஜா, தி.மு.க., - காங்கிரஸ் கூட்டணிக்கு நிபந்தனை விதித்து பேசினார். அவர் பேசியதாவது: தற்போது ஆட்சி செய்யும் தி.மு.க., அரசை நான் குறை கூற விரும்பவில்லை. தி.மு.க.,வினர் கிராமத்திற்கு செல்கின்றனர். இலவச "டிவி' களை வழங்குகின்றனர். ஆனால், மக்கள் வளர்ச்சிக்காக அவர்கள் செல்லவில்லை. இந்த நிலை மாற வேண்டும் என்றால் காங்கிரசுக்கு மக்கள் ஆதரவு அளிக்க வேண்டும். ராகுலுக்கும் ஆதரவு தர வேண்டும். வரும் காலத்தில் நிச்சயமாக காங்கிரஸ் ஆட்சிப் பீடம் ஏறும்.தேர்தலில் எந்தக் கட்சியுடன் கூட்டணி என்பதை ராகுல் தான் முடிவு செய்வார். அவர் வழிகாட்டும் கூட்டணி தான் தமிழகத்தில் மாபெரும் வெற்றி பெறும்.


ஊழலுக்கு எதிரான கட்சி காங்கிரஸ் கட்சி. ஸ்பெக்ட்ரம் ஊழல் செய்தவர்கள் நிச்சயமாக தண்டிக்கப்பட வேண்டும். முதல்வர் கருணாநிதியை கேட்டுக் கொள்கிறேன், ஸ்பெக்ட்ரம் அலைவரிசை ஒதுக்கீட்டில் ஊழல் செய்தவர்களை (ராஜா) தி.மு.க.,விலிருந்து விலக்கி வைக்க வேண்டும். வரும் சட்டசபை தேர்தலில் ஒருவேளை சோனியாவும், ராகுலும் இந்த கூட்டணி வேண்டும் என்று உறுதி செய்ய வேண்டும் என்றால், இதுபோல நடவடிக்கைகளை எடுத்தால் தான் சட்டசபை தேர்தலில் வெற்றி பெற முடியும். இவ்வாறு யுவராஜா பேசினார். அப்போது காங்கிரஸ் தொண்டர்கள் பலமாக கைதட்டி ஆரவாரம் செய்து, இந்த யோசனையை வரவேற்றனர்.


Tuesday, November 23, 2010

Where has the looted money gone?



Given below are 2 eye-opening articles on what could have happened to the money looted in various scams including the 2G scam.


The first one by Prof R.Vaidyanathan enumerates where and how the looted money could have gone and how we need a strong judicial action to check the growth of looters.


The second one is the report by the Global Financial Integrity, based at Washington on the flow of illegal / looted funds from India. These articles remind me of Dr Subramanian swamy's repeated call to the Prime Minister to contact the American authorities to track down the looted money. He is right after all.


We all know that huge money is being looted by politicians and corporates.

We also know where that money goes.

And we know that the money will not be brought back!

Unless the looter does a la Ramalinga Raju, he will not be caught.

In looters we trust!

Their words we trust and to them we entrust governance.

What a people we are!








Scam-tainted money may be moving the markets




R Vaidyanathan

Professor of Finance,

IIM, Bangalore


The financial accounting course taught in every commerce college and business school — Accounting 101— includes a discussion on the sources and uses of funds. In all the discussions on the scams pertaining to the Commonwealth Games (CWG), the Indian Premier League or the 2G spectrum, the focus is on sources, not uses. For instance, in the case of the 2G spectrum scam, which involves an opportunity loss of upto Rs1,76,000 crore to the national exchequer, the documents indicate that a substantial portion of the funds for the bidding came from tax havens like Cyprus, Channel Islands and Mauritius.


The last date for the submission of applications was advanced from October 1, 2007 to September 25, 2007 through an announcement made much after that period was over. On January 10, 2008 the department of telecommunications (DoT) posted an announcement on its website around 2.45pm saying letters of intent for telecom licences along with spectrum would be issued between 3.30-4.30 pm that afternoon and that application fees (worth over Rs1,000 crore) would have to be paid immediately by demand draft along with the supporting documentation.


Licences were given to those who deposited their fees using the infamous 'first-come-first-served' system. In short, spectrum licences were given through a system unknown even for pre-school admissions. The prime minister, if he was serious about tackling corruption, should have ordered an inquiry immediately and sacked the telecom minister.


Now let's see who got licences. More than 45% of Etisalat DB, which acquired a stake in Swan telecom which got the licence, was held by Tiger Trustees Pvt Ltd, a firm 99.8% owned by Dynamix Balwas, a real estate group. UAE-based Etisalat owned its stake through a Mauritius arm, while Delphi Investments, a Mauritius-based company, owned the remainder. All were clearly linked to tax havens.


Interestingly, the Central Bureau of Investigation (CBI) stumbled upon damning evidence of money transfers in the spectrum case while probing the arrest of Maharashtra and Goa chief postmaster general MS Bali. He had allegedly accepted a bribe of Rs2 crore from a builder for issuing a no-objection certificate to build on postal land in Mumbai. Along with him one Arun Dalmia was also arrested. During interrogation, Dalmia allegedly told the sleuths about two Swiss accounts, some property details and high-volume cash transactions flowing into bank accounts in Delhi, Chennai, Singapore, Dubai, Malaysia and other tax havens abroad. But this angle was never probed. Similar is the case with the CWG scam, wherein substantial sums of money have gone to tax havens.


Funds are being siphoned off from India to tax havens by political leaders in cahoots with bureaucrats and business barons. A recent report by Global Financial Integrity, a think-tank based in Washington, suggests that nearly US$460 billion is held illegally by Indians in tax havens. This can only be an underestimate.


Funds — whether in white or black — are always in rotation, and the further the funds flow away from the taxman, the faster they rotate. The same funds often come back as foreign investment in sectors like telecom or real estate, or even as portfolio investments in the stock market. Information about foreign investment in stocks is opaque — to say the least.


Our stock market has decoupled from the economy and its movement is related to scams which generate funds to be sent to tax havens abroad and which are then recycled back. Our economic growth comes primarily from the services sector — which has more than 60% share of GDP — and which is dominated by firms in trade, hotels, construction and other activities performed by the so-called "unorganised" sector. The share of household financial savings going in to stock market is less than 5%.


What we need to probe is this: is major economic activity being financed by resources drained from our own system? Is our stock market largely driven by scam-tainted money? Our political leaders seem to know all about it.


Is there a way out? The only hope is for the Supreme Court to order a special investigation under its control and supervision, away from the CBI and the Central Vigilance Commission, which appear compromised. We need to probe the scams and create a fast track court to punish the guilty within a timeframe and create a process to bring the illegal money back from tax havens. If a couple of leaders are jailed for 20-50 years, some sanity can be injected into the system. Otherwise, we will lose our political freedoms too. Our economic freedom has already been mortgaged with the tax havens and foreign intelligence agencies know all about this. They are, thus, in a position to dictate our economic policies. Will the Supreme Court step in to protect our sovereignty and integrity?


New Report by GFI Finds Illicit Capital Flight out of India US $462 Billion

Examines Role of Tax Evasion, Corruption, Trade Mispricing


(Global Financial Integrity (GFI) is a Washington, DC-based research and advocacy organization which promotes transparency in the international financial system.

GFI promotes national and multilateral policies, safeguards, and agreements aimed at curtailing the cross-border flow of illegal money. In putting forward solutions, facilitating strategic partnerships, and conducting groundbreaking research, GFI is leading the way in efforts to curtail illicit financial flows and enhance global development and security.)



WASHINGTON, DC –"The Drivers and Dynamics of Illicit Financial Flows from India: 1948-2008," released today from Global Financial Integrity (GFI), estimates that tax evasion, crime, and corruption have removed gross illicit assets from India worth US $462 billion.  The report also finds that the faster rates of economic growth since economic reform started in 1991 led to a deterioration of income distribution which led to more illicit flows from the country. Moreover, the report finds that the poor state of governance is reflected in a growing underground economy which in turn has fueled more transfers of illicit capital from India. This analysis is cast in terms of a pre- and a post-reform period spanning a total of 61 years since independence.



"This report puts into stark terms the financial cost of tax evasion, corruption, and other illicit financial practices in India," said Global Financial Integrity director Raymond Baker.  "It also shows that these illicit outflows contribute to stagnating levels of poverty and an ever widening gap between India's rich and poor."


Primary report findings include:


    * From 1948 through 2008, India lost a total of US $213 billion in illicit financial flows (or illegal capital flight).  These illicit financial flows were generally the product of: tax evasion, corruption, bribery and kickbacks, and criminal activities.


    * Adjusted Estimates: The present value of India's total illicit financial flows (IFFs) is at least US $462 billion. This is based on the short-term U.S. Treasury bill rate as a proxy for the rate of return on assets.


    * India's aggregate illicit flows are more than twice the current external debt of US $230 billion.


    * Based on the last five years of the study, 2004-2008, India lost assets at a rate of US $19 billion per year.


    * Total capital flight out of India represents approximately 16.6 percent of India's GDP as of year-end 2008. In present value terms, India lost an equivalent of about 36 percent of its 2008 GDP which represents a staggering loss of capital.


    * Some 68 percent of India's aggregate illicit capital loss occurred after India's economic reforms in 1991, indicating that deregulation and trade liberalization actually contributed to/accelerated the transfer of illicit money abroad.


    * IFF Drivers: High Net-Worth Individuals (HNWIs) and private companies were found to be the primary drivers of illicit flows out of India's private sector.  India's underground economy is also a significant driver of illicit financial flows.


    * IFF Trends:  From 1948 through 2008 the Indian private sector shifted away from deposits into developed country banks and moved more of its money into offshore financial centers (OFCs).  The share of OFC deposits increased from 36.4 percent in 1995 to 54.2 percent in 2009.


"In this report we clearly demonstrate how India's underground economy is closely tied to illicit financial outflows," said GFI lead economist and report author, Dr. Dev Kar.


"The total present value of India's illicit assets held abroad accounts for approximately 72 percent of India's underground economy.  This means that almost three-quarters of the illicit assets comprising India's underground economy—which has been estimated to account for 50 percent of India's GDP (approximately US $640 billion at the end of 2008)—ends up outside of the country.  We also find that there is a statistical correlation between larger volumes of illicit flows and deteriorating income distribution."



The report also makes recommendations for economic reforms and good governance measures and contains comprehensive tables, charts, and other data for detailed analysis of India's illicit financial flows, economic indices, and history of financial reforms.


The report is available at http://india.gfip.org.





Dev Kar, the author of the report, utilized the World Bank Residual Model (CED) and a trade Mispricing Model based on IMF Direction of Trade statistics.


The World Bank Residual Model tracks illicit outflows by measuring differences in a country's recorded source of funds relative to its use of funds. According to this method, illicit outflows exist when a country's recorded source of funds exceeds its recorded use of funds.


The Trade Mispricing Model compares a country's recorded imports to what the world says it exported to that country; similarly, the country's recorded exports are compared against world imports from that country. Import values are adjusted for the cost of freight and insurance before they are compared to exports. GFI's estimates of trade mispricing are based on the gross excluding reversals (GER) method which tracks illicit outflows as a result of export under-invoicing and import over-invoicing.


The author identified the drivers of illicit flows from India using a block-recursive dynamic simulation model which incorporated macroeconomic factors (government deficits, inflation, and inflationary expectations) structural factors (increasing trade openness, faster rates of economic growth and impact of these on income distribution), and overall governance as captured by a measure of the underground economy. (14)




Tax evasion is a major component of the underground economy, which in turn is a primary driver of India's illicit outflows. Expanding India's tax base and improving tax collection has high potential to curtail illicit flows.


Illicit financial flows cannot be curtailed without the collaborative effort of both developing and developed countries. Economic reforms key to stemming the outflow of illicit money from India and the developing world in general include:


• curtail trade mispricing (a widely utilized tax avoidance technique of international businesses);


• require country-by-country reporting of sales, profits and taxes paid by multinational corporations;


• require confirmation of beneficial ownership in all banking and securities accounts;


• require automatic cross-border exchange of tax information on personal and business accounts; and


• harmonize predicate offenses under anti-money laundering laws across all countries that cooperate on the Financial Action Task Force.





Sunday, November 21, 2010

Dr Subramanian Swamy on 2G, DMK and who shared the scam money.


Interview of the Week `I don't want PM to resign'







Janata Party president SUBRAMANIAN SWAMY says he was motivated to commence his investigation in the 2G spectrum allotment case after he heard influential people say that this might constitute the instance of the "most monumental corruption" in world history. Dr Swamy tells ANAND K. SAHAY in this interview that those who made the money will stand to gain politically if Prime Minister Manmohan Singh is forced to resign.


Q. Your Public Interest Litigation concerning the 2G spectrum allotment has led to the resignation of the telecommunications minister, A. Raja, and is still reverberating in the political sphere. What alerted you to the possibility that the 2G case needed investigation?

A. I went back to Harvard in 2008. I often go there in the summer to teach. In the course of a gathering of prominent people it was being said that the 2G spectrum allotment in India (2007-'08) might be the case of the most monumental corruption in world history. They were saying this might be the beginning of the end for India. The scenario was compounded on account of the earlier Satyam scam. After what I heard, I wrote a book Satyam, Spectrum, Sundaram. The "Sundaram" in the title spelt for me hope and what's good with India.

Q. Who were in the gathering?

Why did you attach so much weight to what was being said?
A. It was a sort of world economic forum, if you like. Top bankers and others. Some of them are tracking terrorist funding and hawala transactions and the like. Like the Emergency which motivated me (to fight), I felt I should put up such a fight that it should become a landmark.

Q. Someone called Niira Radia, who heads Vaishnavi Communication and represents top politicians and top business entities like the Tatas and Mukesh Ambani, is allegedly instrumental in some of the activities you were looking at. Were you in touch?

A. For three years Niira Radia was the de facto wife of an Opposition leader from south India. She is from Gujarat and there they have the system of "maitri karar" (friendship agreement). So, I knew I had to do the work myself. I have experience of taking up anti-corruption cases against (the late) Ramakr ishna Hegde and J. Jayalalithaa.
The territory was familiar.


I wrote to the Prime Minister. I thought here was a man I've known so well --fellow economist and he was my economic adviser when I was commerce minister. There has been no break in the relationship. I wrote in November 2008 asking for sanction to prosecute Mr Raja. There was no reply. I knew that he won't be able to rock the boat. He is decent, upright, and I have great regard for him. So, I said let me build a case as I had to go to court. Each time I got new material, I'll send a letter. In March 2010, I gave an ultimatum saying that if you don't reply by March 21, I'll go to court. This was the fourth communication.



Q. Presumably your last. What did you say in letters two and three?

A. No, it wasn't the last. He (the PM) sent me a letter on March 19 through the secretary of the department of personnel saying that it was "premature" to give permission (to prosecute the telecommunications minister).
So I filed a case in the Delhi high court on March 21.

After I went to court, they said you can give more documents.
So I sent the PM another letter on June 10, with complete documents -about 100 pages. It pre-dated the Comptroller and Auditor General material and what the media may have got.
This was the last letter.


When I came back in August from Harvard, my petition came up. It also asked that the 2G licences allotted be cancelled, and challenged the first-comefirst-served principle under which the spectrum was given out.


In another matter -in the case of a company called S Tel -the high court held that the advancing of the cut-off date from October 1 to September 25 by Mr Raja was wrong. Then I thought I am ready and went to the Supreme Court.


You asked about my second and third letter. In those I gave the PM more documents, including details of the company called Genex (with which the Dravida Munnetra Kazhagam is allegedly associated). He knew all that already, and I was happy to note that he knew that I too knew.



Q. Why do you think the PM still didn't act against Mr Raja or any others at that stage? If he had, the issue of the PM's resignation would not be thrown up at all.

A. This (the fact that the PM did not take any action) still cannot be a case for his resignation. He didn't make any money or seek any money. He made feeble attempts to rectify matters, wrote to Mr Raja, tried to see that he didn't get the telecom portfolio again (in United Progressive Alliance 2).


Q. So, what was driving matters? Push from the DMK in a coalition situation?

A. Top Congress leaders. They may have got 40 per cent of the money which has been made. In the recent core group meeting of the Congress (when the storm broke), four were on one side and the PM on the other. But he got Mr Raja to resign. This is why I don't want him to resign.

Q. I heard you say on television that it was easy to crack the case. All that was needed was to go to the Americans.

A. Sure. The Americans are monitoring all financial flows in the world -bank transfers and others. Part of their own antiterrorism and money-laundering effort. There is also a UN money-laundering resolution to which we are a party. We should get in touch with the US on this.

Q. Do you believe the Congress-DMK alliance can continue if it can be publicly shown that any of the tainted money in the 2G affair has reached the top boys in the DMK? That is what the so-called Genex deal is meant to be about. After all, the Tamil Nadu Assembly elections is hardly six months away. And what happens to UPA 2 in the worst case scenario?

A. How do I care? The DMK lot may have got 30 per cent of `60,000 crore.


Q. But there is still a good chance that the Left and the Right Opposition can still ask for the Prime Minister to resign. This suits them politically and will precipitate a political crisis.

A. I can tell you, Bharatiya Janata Party won't ask for Dr Singh's resignation. The reason is the resignation will politically strengthen those who got the money and the Rashtriya Swayamsevak Sangh and Vishva Hindu Parishad understand this.






Took up spectrum issue as it impinges on security: Swamy







B Sivakumar, TNN, Nov 21, 2010, 03.16am IST



CHENNAI: Subramanian Swamy, a Harvard-educated economist, who filed a petition on the spectrum scandal before the Supreme Court, that triggered a campaign to force Union telecom minister A Raja out of office says the spectrum scandal was not only the biggest scam to have taken place in the country, it also impinged on national security. 

Replying to a range of questions on the scam and the upcoming Tamil Nadu elections, Swamy said the scandal has put PM Manmohan Singh in a bind. 

Q: When did you sense a massive scam in the 2G spectrum allocation and what prompted you to seek A Raja's prosecution? 

A: On
January 11, 2008 I received an eyewitness account of what happened in the Sanchar Bhavan (which houses the telecom ministry in New Delhi). 

Q: Who brought the scam to your notice?

A: Mostly honest civil servants. 

Q: What made you take up the 2G spectrum issue? Is it a campaign against the DMK or the Congress? 

A: It is the biggest scam which impinges on national security. 

Q: Did you expect Raja to resign when you took up the issue?

A: I was sure that the PM was inclined and my case would help him to. 

Q: Did you expect the Supreme Court to question the Prime Minister on this issue? 

There is no explicit censure. The Prime Minister is in a difficult bind. 

When the investigating agencies were able to update the courts on the progress of the 2G case, why do you think the PMO delayed replying to your petitions? 
I think the Prime Minister was under pressure. 

Q: Union minister Kapil Sibal has said that you are taking up the 2G spectrum issue in the Supreme Court to gain political space and not for justice. 

A: It is a foolish comment. I have to intervene because the Congress is giving protection to Raja. 

Q: Tamil Nadu chief minister M Karunanidhi has said he had nothing against a JPC probe. Do you think he is trying to put the onus of responsibility on Raja? 

A: That is why I insist on high-level security cover for Raja.








Janata Party chief and former law minister Subramanian Swamy talks to Saubhadra Chatterji about life and politics


Q: Before coming to the current 2G issue, I want to ask you an existential question. What prompts you to knock the doors of courts as a crusader?

People love to play safe, but in my case I don't need to play safe. I am in a position where I already have what I wanted. I have been full professor at the Harvard University. I was a professor at IIT, probably the youngest there. Even today I can get a professor's job anywhere in the world. People generally avoid controversy as they are afraid that they may be denied a position. I have been brought up with the philosophy — it may sound old-fashioned — that it is your karma that gives you rewards. I have been a Member of Parliament five times. I have been elected from Mumbai, Uttar Pradesh and of course Tamil Nadu. Nobody believes how this can happen when I don't have a godfather. I don't have any shortage of money with my earnings and inheritance. So, I have elbow room for this kind of mission. Fighting injustice has always been a strong instinct in me.


Q: But your crusades seem to be only against the Congress party.

Well, I was not cruel when Rajiv (Gandhi) was there. The whole country was cruel to him. I was with him at that time. I was with PV Narasimha Rao who was treated very badly by Sonia Gandhi. And I am still very soft on Prime Minister Manmohan Singh. Even the Supreme Court noted that I have a high opinion about the prime minister. But unfortunately, the Congress today has become a crass money-grabbing entity. So, I have to take a stand. The Congress — not the prime minister but Sonia Gandhi — is trying to target the opposition. She is telling the media not to publish anything I say. I have been targeted by her. I have to fight back.


Q: But these efforts have yielded no political dividend for you in the past few years.

I don't care. People may seek rewards but I don't need them.


Q: You have not been elected to Parliament even once after 1999.

I was in Parliament for five terms. I did not contest the last time. In the previous election, it was the electronic voting machine which defeated me.


Q: What prompted you to fight the case against A Raja?

It was monumental corruption. Nobody else was doing it. The opposition may try to take credit now. It may have written a few letters but didn't do anything to take the matter to its logical end.

My opponents' problem is that they can't say anything against me. They can't say I am illiterate. They can't say I am corrupt and dishonest. So, they have to say nobody pays any attention to Subramanian Swamy.

But Sonia Gandhi dare not file a case against me.As far as Raja case is concerned, I don't need sanction any more. The prosecution can go ahead. The issue is why did the prime minister take such a long time? Why did he not decide immediately? My question is whether there is any mala fide intention in his delay. But I don't want him to resign because everyone knows he doesn't exercise full power. He has to take sanctions from Sonia Gandhi.


Q: Do you think the prime minister is a victim of coalition compulsions?

Well, I was also a minister of a coalition government which was supported by Rajiv Gandhi. But we didn't budge under pressure. My point is, coalition compulsion cannot be an excuse. Vajpayee used that as an excuse for not doing anything on Hindutva. On fundamentals, you have to take a stand or get out.


Q: Your state will be going for elections in a few months. Do you see the 2G scam becoming a major political issue?

I did the same thing against Jayalalithaa too. It paid rich dividend. I entered Tamil Nadu politics in the bastion of Dravidianism in Madurai. Although I am a Brahmin, I nearly defeated the DMK candidate in Madurai. Jayalalithaa's problem is that she is not credible on corruption. But if she and I join hands and she concentrates on the organisational aspects, I on the campaign against corruption and go to the public saying we will root out corruption, that will be well-received.


Q: But can corruption really be a determining factor in the Tamil Nadu elections?

It has been. When MGR was there, when JP was there, corruption became a political issue. But people want confidence that you are not doing it only for political purpose, that you are an honest man. People have started believing I am against corruption, I am honest, and most importantly, I can do something about corruption.


Q: What will be your party's strategy in the elections?

I believe if I can win two or three seats in the Assembly, it will be taken as the dawn of a new era. But if Jayalalithaa is ready for an alliance…but she can't be ready because she has got a friend called Sasikala. But if Jayalalithaa and I can join hands, we can easily get a majority.


Q: The Congress managers believe the Congress party is kingmaker in Tamil Nadu.

The Congress may claim anything. Let them stand alone and show they are the kingmakers. Anyway, my plan is to put up candidates on a limited number of seats, if the alliance doesn't take place. Madurai is my base and puts me in direct confrontation with M K Alagiri. But don't worry, even in the past I have defeated him. I am now looking for an entry in the Tamil Nadu Assembly. I did it once in 1996 and got one MLA. After that I went for an alliance with Jayalalithaa, but eventually we broke up. Then I got busy with academics. But now I am fully back in politics. So, my aim is to get two or three MLAs of my party elected. But if she wants an alliance, I will be ready, because despite all her minuses I like her.


Q: So you are confident that this 2G scam will be a blow for DMK in the next election.

Oh yes, no doubt this will be a blow for both DMK and Sonia Gandhi.