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S e - Voice For Justice - e-news weekly

Spreading the light of humanity & freedom
Editor: Nagaraja.M.R.. Vol.09..Issue.21........24/05/2014
RESERVE BAN !" IN#IA $!VERN!R S%AME S%AME

SOIL! "O# F$%&! '%S ( $)I )%"*%LO$
- #rauma of an old man

'omplete case details also a+aila,le
at http-..mem,ers.lycos.co.uk.ganapathihariram.
%s per allegations of $)I management )angalore in /011-10 2 criminal
ne3us of $)I employees stole $s. 445555 from $)I )angalore. %ll the
,anks 2 go+ernment treasuries in 6arnataka 2 su,mit defaced . soiled
currency notes to $)I )angalore in e3change for good notes. $)I after
collecting such defaced currency notes 2 sorts out fairly good notes
which can ,e reissued & ,urns off the remaining totally defaced
currency notes. %ll these process is done in a systematic manner.
%s per allegations of the management 2 the crime took place in the
period of /011-10 at $)I )angalore. % ne3us of employees2 took away
the currency ,undles meant for destruction & su,stituted it in the
place of ,undles of reissua,les.
'harge sheet issued ,y $)I )angalore office to mr.*.7ariram
Staff no.890:./;9.:<-:; dt / april /0:;
%mended charge sheet staff no 810:./;9-:<.:; dt : april /0:;
')I has charge sheeted /1 employees in connection with this case 2
case olde no. cc8<./0:0 new no. sc <89./00/ . the
honoura,le 4/ city additional city ci+il & sessions court )angalore in
it=s order dated 4<.5/./004
discharged 58 charge sheeted employees 2 as the prosecution
failed to pro+e the charges against them. #hey came out clean 2 as
they were innocents saddled with the crime done ,y others. One of the
charge sheeted employee who turned appro+er for the prosecution2 has
gi+en detailed account of the crime. "owhere he has mentioned the
in+ol+ement of accussed no./; mr.*.7ariram in the crime.
+en after coming out clean2 mr.*.7ariram was not reinstated into
ser+ice ,y $)I. #hey ga+e the ruse of domestic en>uiry & showed
contempt to the court order. On appeal2 the honoura,le high court of
6arnataka ordered $)I to re+iew it=s order with respect to
mr.*.7ariram 2 still $)I failed to reinstate mr.*.7ariram into ser+ice
2 once gain showing contempt to the court of law.
In India as per law 2 the decisions of court of law are ,inding on all
2 orders of court o+er rides the organisation=s internal rules 2
ser+ice rules 2 etc. inspite of lack of e+idences2 in a whimsical
manner the higher authorities of $)I 2 fi3ed some innocents as the
scape goats heaped all charges against them ? against whom they had
personal grudge 2 dislikes @. $)I repeatedly showed contempt to the
court orders 2 dismissed the scape goat - ailing old man mr.*.7ariram
from ser+ice. $)I snatched away his AF money towards the alleged loss
to the ,ank 2 didn=t pay his gratuity amount 2 salary arrears and
finally he was e+en depri+ed of the pension. %s a result 2 the old man
has e+en lost his social prestige2 dignity 2 his family suffered a lot
& he is a mental wreck today.
Bhy $)I authoroties are hell ,ent upon to send away the innocents .
scape goats away from ser+ice C why ')I didn=t conduct polygraph tests
of all the accussed 2 specifically higher officers of $)I 2 managers
of $)I office )angalore C pro,a,ly the scape goats were aware of the
crimes master minded ,y higher ups & didn=t co-operate with the higher
ups in their crimes. So2 the criminals were afraid that the scape
goats will ,lurt out truth to the world 2 fi3ed non co-operating
innocents themsel+es as criminals.
Bho will gi+e Dustice to innocents like old man mr.*.7ariram & who
will ,ell the corrupt 2 criminals 2 fat cats of $)I C

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*OV$"E"# OF 6%$"%#%6%
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BI#7 $SA'# #O '%S "O old ''8< . /0:0 & "B "O S'<89./00/ %# 4/
S# %!!I#IO"%L 'I#H 'IVIL & SSSIO"S 'O&$# )%"*%LO$
'7%$* S7#! OFFI'$ E$.*.7%$I$%E $)I )%"*%LO$
'7%$* S7# "O staff no.890:./;9.:<-:; dt 5/.5/./0:;
%mended charge sheet staff no.810:./;9-:<.:; dt 5:.5<./0:;
/. Bhy didn=t you notice the alleged crimes of /011 2 1: & 10 till the
mid of /010 C
4. #his crime came to light only due to anonymous phone calls of good
Samaritans to authorities 2 ,ut not due to your inspection . is your
inspection di+ision working properly C
8. why there is no security check up of officers during entry & e3it
out of premises C
<. why there is no indi+idual weighment 2 indi+idual statement of
+alue of ,ags of reissua,le notes & ,ags of note meant for destruction
2 after sorting is done2 why they are not tallied with total weight 2
+alue of notes issued for sorting C
;. Immediately after noticing the crime2 why did not you transfer all
the employees of those sections C
9. why did not you take steps to preser+e8 & protect respecti+e
documents relating to such high profile crime C
1. why didn=t you immediately issue charge sheet to all the accussed &
waited till /0:8 C
:. Bhy $)I has left out 2 so many officers ? who worked in the same
sections for more period than accused officers @ from domestic
en>uiry C
0. why ')I also failed to put those people in the charge sheet ,efore
the court C
/5. is it ,ecause they were in fa+ora,le terms with the +ested
interests C
//. did the ')I dance to the tune of +ested interests in $)I while
preparing charge sheet & during in+estigation 2 instead of
independent in+estigation C
/4. those left out pro,a,les from the charge sheet might ha+e caused
the destruction of e+idences . records. !uring the course of domestic
en>uiry . court proceedings 2 it has ,een recorded that some records
ha+e ,een destroyed. %re not ')I & $)I responsi,le for destruction of
e+idences 2 aiding true criminals get away C
/8. in normal times 2 what is the period specified in $)I regulations
for preser+ing old documents . records C
/<. after noticing such a high profile crime the $)I must ha+e taken
utmost care to preser+e such old records for indefinite time 2 for
producing ,efore courts of law as & when demanded. )ut it didn=t 2
why C
/;. does not this point to conni+ance of higher authorities of $)I 2
with the criminals C
/9. $)I authorities ha+e conducted domestic mass en>uiries 2 instead
of indi+idual en>uiries 2 is it not detrimental to the rights of
defense C
/1. $)I authorities ha+e stated that court proceedings & domestic
en>uiry are independent of each other & are not ,inding on one
another. 7owe+er $)I authorities straight away took on record of
domestic en>uiry the court statements 2 e+idences 2 ,ut didn=t honour
the order of same court of law C why this dou,le standard ,y $)I C
/:. #he alleged crime was committed in /011-102 ,ut charge sheet was
framed in mid /0:; 2 why this long delay C
/0. didn=t this facilitate the masterminds of crime to destroy 2
manipulate e+idences C
45. as stated ,efore court 2 indeed some records 2 44nd currency note
packet were missing 2 who is responsi,le for it C
4/. has the ')I conducted en>uiry 2 polygraph test of $)I higher
officers - S.".$%K!%" 2 B.S.S%$%F 2 J.A.%B%S#7I 2 J.EI#$% & others 2
if not why C
44. is it not due to inefficiency 2 negligence of duty ,y such high
ranking managers 2 that such a crime occurred in $)I )angalore C
48. what disciplinary action $)I has taken against the inefficient 2
negligent higher officials C
4<. whate+er internal rules an organiLation makes must ,e within the
line of law. If such internal laws of the organiLation are +iolati+e
of law 2 fundamental rights of employees 2 such internal rules ,ecome
illegal. %re not the way of $)I disciplinary proceedings illegal C
4;. as per $)I pension regulations /005 2 $)I has the right to deduct
any loss caused to the ,ank 2 from the pension of $)I employee if the
misconduct of employee is pro+ed in Dudicial proceedings . e+en though
mr.*.7ariram came out clean from the court 2 why $)I has denied his
pension C
49. Dudicial courts of law are appellate authorities o+er & a,o+e 2
domestic en>uiry committees & Dudicial orders supersedes the domestic
en>uiry proceedings. Still $)I showed contempt of court & didn=t
reinstate mr..*.7ariram into ser+ice 2 why C
41. e+en if an employee=s misconduct causing loss to the ,ank is
pro+ed 2 ,efore denying him pension ?towards making up loss to the
,ank@ 2 pre+ious sanction of the central ,oard of $)I must ,e taken.
)ut in mr.*.7ariram=s case 2 pension was denied in full without taking
pre+ious sanction of the central ,oard of $)I 2 is it not illegal C
4:. $)I alleged that mr..*.7ariram caused loss to the tune of $s./<555
to the ,ank & reco+ered it from his pro+ident fund dues. #here was
nothing left o+er to reco+er 2 still $)I completely denied pension to
mr.*.7ariram 2 why C
40. ideally2 domestic en>uiry findings . disciplinary actions should
,e completed first 2 then the employee can appeal to appropriate court
of law. In mr.*.7ariram=s case 2 ')I & $)I failed to pro+e the charges
in court of law 2 as a result court discharged him from the charges.
#o co+er-up it=s failures $)I management dragged domestic en>uiry much
,eyond court orders date & ga+e findings indicting mr..*.7ariram. does
the en>uiry officer of domestic en>uiry think that he is o+er & a,o+e
the court of law C is it not illegal & contempt of court C
85. ideally 2 $)I authorities should ha+e appealed to higher court
against lower court order discharging mr.*.7ariram from charges. )ut
it was not done 2 why C
8/. did the $)I pay interim relief to mr.*.7ariram 2 during suspension
period C
84. the undue delay in filing charge sheet 2 conse>uent destruction of
key e+idences 2 dishonour . contempt of court orders 2 undue haste in
gi+ing findings 2 dismissal 2 denial of of pension without central
,oard=s sanction 2 all point towards criminals within $)I higher
management. Bhat disciplinary action has ,een taken against
J.A.%B%S#7I2 S.".$%K!%"2J.EI#$%2 B.S%$%F & others C if not why C
88. why charge sheet was amendedC Is it legal C
8<. did the charge sheet was amended to falsely implicate
mr..*.7ariram 2 ,y including cancelled note +ault in the charge
sheet C
8;. does not this itself show that it is not statement of actual
happenings . facts 2 ,ut a cunning ploy to mislead in+estigation
towards fi3ed innocents from actual criminals C
89. is it true that that only ;M of sample inspection is done out of
,undled +erified defecti+e note packets C
81. is not the conduct of Doint . mass en>uiries of all charge sheeted
officers illegal C
8:. how come such an important e+idence 44nd note packet went
missing C
80. is it ,ecause it may point towards real criminals C
<5. as per the statement of management witness . inspection head .
e3pert mr.+iDendra rao 2 the notes of earlier dates ha+e ,een remo+ed
from packets made into new ,undles 2 right C
</. as per his statement 2 entire certificates 2 seals of some asst
treasurers are there 2 who didn=t work at all on that day is not it C
<4. does not it show that some ,ody else was misusing the seals 2
putting some innocents seals o+er the notes C
<8. does it not show that 2 crime has taken place at +erification
section C
<<. does it not show in+ol+ement of some asst treasurers C
<;. why asst treasurers ha+e not ,een charge sheeted C
<9. why inspection of $)I )angalore office was not done ,etween /01; &
/010 C
<1. is it not true that you failed to produce all records showing
internal inspection . audits 2 during domestic en>uiry & court
proceedings C
<:. your e3pert mr.+iDendra rao has stated that some seal marks are
smudged 2 he has stated some seal marks appears to ,e so & so. 7e has
clearly nowhere stated that this seal mark is e3actly this 2 so he
himself is not /55M sure C
<0. your e3pert nowhere said that /55M sure this seal mark is this 2
on that day this seal was issued to mr.*.7ariram 2 isn=t it C
;5. your e3pert says during /01; 2 he didn=t notice8 any fraud.
7owe+er appro+er says fraud was there ,efore mid /011 also. Bhy no
action has ,een taken C
;/. why you didn=t produce all records of all persons 2 who ha+e
specifically worked in alleged sections 2 the registers of those
departments with daily acti+ity report containing seal nos 2 packet
nos 2 ,ag nos 2 etc C
;4. are not their chances of some criminals putting the seal marks of
innocent officers o+er the notes 2 ,undles 2 ,ags 2 etc C
;8. your e3pert is not /55M sure of seal mark 2 your records are not
there to pro+e the presence of charge sheeted officers in the alleged
sections 2 neither your e3pert nor your records are /55M sure on what
date 2 at what stage 2 ,y whom crime was committed 2 isn=t it C
;<. is not the charge sheet amounting to higher ups picking up
officers they dislike & falsely implicating them C
;;. is it not cunning ploy of higher ups to di+ert attention from
original criminals C
;9. why no action was taken against currency officer of /011-10
mr.J.Eitra C why his pension 2 super annuation ,enefits were not
withheld C
;1. what is your Dustification 2 supporting e+idence 2 records for
picking up only three officers including mr.*.7ariram for legal
prosecution and lea+ing the maDority of pro,a,les C
;:. why you ha+e dropped charges against fi+e asst treasurers C why
you didn=t e+en conduct domestic en>uiry against them 2 let alone
legal prosecution C
;0. Is it $)I=s & ')I=s way of fair play & Dustice C
95. as inly ;M sampling of +erified note ,undles are done 2 there are
more possi,ilities of re,undled packets getting unnoticed in rela3ed
0;M lot 2 isn=t it C
9/. you ha+e left out so many officers who worked in those sections2
some of whom e+en ,ecame management witnesses 2 instead of ,eing
charge sheeted ,y the management2 is it fair play & legal C
94. who are the ,ank employees 2 from whom you ha+e reco+ered the
alleged ,ank loss of $s.445555 C
98. were all of them charge sheeted 2 en>uired 2 legally prosecuted 2
dismissed & their pension 2 gratuity withheld C
9<. you don=t ha+e any internal statuotary records to pro+e that
mr.*.7ariram worked in those departments 2 e3cept a currency officer=s
office note dated Dust on the e+e of charge sheet years after the
alleged crime C does it not pro+e that this note has ,een concocted
Dust to fi3 mr.*.7ariram C
9;. where as you ha+e records of other officials attendance in those
departments 2 ,ut not charge sheeted them why C
99. three officers of staff grade % daily work in three sections out
of <5 officers 2 why you ha+e picked up only mr.*.7ariram 2 out of
/50; working days 2 he has worked for only 448 days in those
sections 2 still those officers who worked for more days in those
sections are not charge sheeted why C the appro+er 2 the management
e3pert witness 2 shift registers 2 V4 registers 2 !estruction
certificates 2 Form '! ;; 2 etc 2 no,ody 2 no records were a,le to say
on what date 2 at what stage 2 ,y whom crime took place 2 also they
were una,le to say on what date at what stage crime was committed ,y
mr.*.7ariram C is it not futile imagination 2 cunning ploy of $)I
higher authorities to fi3 innocent Er.*.7ariram C
91. the management e3pert witnesses said 2 the most pro,a,le place of
crime is punching . 'ancelled "ote Vault 2 incinerator 2 where asst
treasurers were Doint custodians . they were not en>uired & let off
why C
9:. the charge sheet alleges e3traction . su,stitution of
defaced note packets. Bhere as the management e3pert witness say
su,stitution of defaced notes only C is not there difference ,etween
loss of one num,er of note & /55 num,er of notes C
90. as per the normal course of duty 2 staff officers does not
count notes in each ,undles 2 ,ut they Dust count the num,er of
,undles only. Is not there chances of inserted note ,undles or ,undles
containing less num,er of notes going unnoticed C is it not the
failure of statuotary system of work practices C
15. does not all these pro+e higher authorities of $)I & ')I
were hell ,ent to fi3 mr.*.7ariram & to shield the original
criminals C
Juestions with respect to other cases -
1/. how do you monitor the work of ,ank officials nominated as
directors of companies which ha+e a+ailed ,ank loans C
14. how do you monitor the work of companies 2 in which ,anks
ha+e in+ested C
18. how do you monitor the rapid wealth growth of certain ,ank
officials 2 who work in shares in+estment . e>uity funds section 2
etc C
1<. inspite of proDect reports ,y ,ank officials 2 o+er
assessment of collateral securites . +alue of de,tor companies ,y ,ank
officials 2 the loans ,ecome "A%s & full +alue cann=t ,e realiLed in
the market ,y selling off the assets of de,tor companies also. In such
cases 2 what action is taken against erring ,ank officials who collude
with criminal industrialists for a+ailing higher amount of loan than
permissi,le C
1;. gi+e ,ankwise specific figures of "A%s.
19. gi+e names of industrial groups . promoters whose
companies ha+e ,ecome "A%s 2 so that pu,lic can ,e aware of them 2
,efore in+esting in new companies promoted ,y them.
11. is not collection of loan from de,tors of ,ank through
rowdies . reco+ery agents 2 illegal C
1:. why not criminal complaints filed against ,ank mangers for
aiding 2 a,etting rowdism 2 murdering people C
10. if your method of employing rowdies to collect loans of $s.
/5555 from commoners is right 2 what would you do to a promoter of a
de,tor company to reco+er loans of crores of rupees 2 supari killing C
,ut de,tors of crores of rupees is let off coolly ,y ,anks 2 why C
:5. what is the e3act amount of loss caused to the e3che>uer
,y karim lala telgi who printed fake stamp papers C
:/. what action has ,een taken against those in+ol+ed C
:4. ha+e you taken action against all those mentioned ,y telgi
during narco analysis test 2 if not why C is it ,ecause they are
powerful & ,igwigs C
:8. how you are controlling the illegal finance acti+ities 2
money lending ,y indi+iduals 2 pawn ,rokers & chit fund companies C
:<. how you are monitoring the receipt of pu,lic donations 2
foreign donations ,y many "*Os C
:;. how many erring "*Os 2 chit fund companies 2 pawn
,rokers 2 indi+iduals you ha+e ,ooked for illegal finance acti+ities C
Juestions relating to $)I '&$$"'H "O# A$SS EHSO$
:9. who were responsi,le for selling the good printing machine at
security press nasik to scamster karim lala telgi as scrap C
:1. who recruited the candidates ,elow merit rankings in $.).I for
what criminal roles C
::. how many irregularities ha+e taken place in $.).I till date C
:0. who is responsi,le for installing2 operating & super+ising the
security set-up in $.).I C
05. how the raw materials ie num,er of paper sheets2 ink2 etc are
accounted for in inward stores & while issuing for printing C
0/. how wastages2 scrap of ink 2 papers 2 etc in the printing process
are accounted forC
04. 7ow the finished goods ie currency notes are accounted for C
08. Bho keeps physical figures & possession of goods2 in+entory of
all the a,o+eC
0<. 7ow the scrap paper is disposed off C
0;. From security angle who keeps track from start till dispatch C
09. *i+e me the merit ranking list of all candidates for the
post of stores assistant in )$)"EAL in the year /00;-09 C
01. gi+e me the merit ranking list of all candidates for the
post of process assistant at )$)"EAL in the year /009 C
0:. gi+e me the merit ranking list of all candidates for the
post of process assistants & maintenance assistants at )$)"EAL in the
year /009-/00: C
00. is not $)I & )$)"EAL authorities created ,y statuotary
laws 2 fully funded ,y pu,lic money ie from go+ernment e3che>uer C
/55. still why )$)"EAL & $)I refused to answer my pre+ious
information re>uest as per $#I %ct C are you afraid that skeletons
will come out of cu,,oard C
/5/. what action initiated against the S)I ,ranch )angalore & S)I
O+erseas ,ranch for loss of che>ue . draft amounting to crores of
rupees C if not why C
/54. gi+e me specific figures ,ank wise with respect to loss caused
to the ,ank ,y loss of che>ues or demand drafts 2 etc C
/58. how $)I is containing crimes of loss of che>ues . !!s causing
huge losses to the ,anks to the tune of crores of rupees C
H%$ #O B7I'7 %)OV A$#%I"S - E%JO$I#H OF !O'&E"#S A$#%I"S #O
H%$
/0:: onwards . SOE OF #7 !O'&E"#S %$ !%#! )%'6 #O /0<1.
FS A%I! - IAO "O 98 8/:08; FO$ $&AS #" O"LH Fa+ouring 'AIO $)I
7J E&E)%I
A&)LI' I"FO$E%#IO" OFFI'$ F$OE B7OE #7 I"FO$E%#IO" IS $J&I$!
-
V.S.!%S 2 '"#$%L A&)LI' I"FO$E%#IO" OFFI'$ 2 O.O 7O"O&$%)L
*OV$"O$2 $)I 7J 2 '"#$%L OFFI' 2 %E%$ )&IL!I"* 2
A.E.E%$* 2E&E)%I-<5555/.
!ate - 5/.//.455: HourNs sincerely2
Alace - Eysore "agaraD.E.$.

FI"%"' S'%ES I" I"!I% & ;-S#%$ L%!$S BI#7 )**I"* )OBL
In O mysooru mithraO a kannada daily dated /;.59.455;2 the editor has
written a,out a copy of the complaint made ,y #ransparency
International India-)angalore to central +igilance commission of
india.
In indian ,anks 2 there is a strange practice that whene+er a che>ue
is put ,efore the clearing house ,y a ,ank2 the clearing house sends
that che>ue to the ser+ice ,ranch of ,ank paying. #he ser+ice ,ranch
then sends that che>ue to the appropriate ,ank ,ranch
for deduction of cash from the che>ue account. In this tra+el 2 if the
che>ue is lost or misplaced midway2 the ser+ice ,ranch pays out of
it=s suspense account to the cash collecting ,ank. Logically2
afterwards the ser+ice ,ranch must initiate a thorough in>uiry2 get
authentication from ,oth persons one who ga+e che>ue & other who
collected che>ue. Finally2 the money must ,e transferred from the
account of che>ue gi+er to the suspense account.
7owe+er 2 upto /001 two ,ranches of state ,ank of india in ,angalore &
o+erseas ,ranch sufferred from fre>uent loss of che>ues totally
amounting to $&AS #7$ #7O&S%"! #BO 7&"!$! '$O$. In all cases
of
che>ue loss the ,ank has paid out of suspense account2 totally
amounting to $s.8455 crore. 7owe+er the ,ank has not
initiated any en>uiry to reco+er that amount from the che>ue gi+ers.
In the /001 internal audit report of the ,ank itself 2 this has ,een
clearly pointed out. #ill date2 e+en the central +igilance commission
has not initiated any action a,out it. % mem,er of central +igilance
commission happens to ,e e3-chairman of state ,ank of india.
It is Dust an instance of two ,ranches of S)I2 what a,out hundreds of
,ranches of S)I2 what a,out thousands of ,ranches of other pu,lic
sector2pri+ate sector & co-operati+e ,anks. It is fraud2fraud2fraud
all the way. Few months ,ack to co+er-up the crimes
of glo,al trust ,ank ? *#)@ 2 it was taken o+er ,y oriental ,ank of
commerce ? O)'@.
Bhile sanctioning a loan of Dust $s./5555 to a common man 2 he has to
comply with lengthy legalities. If he defaults2 ,ankers ,reath down
his neck2 ,ankers send rowdies in the form of reco+ery agents to
humiliate the common man & his properties are
auctioned-off2 finally all dues to the last penny are reco+ered. In
most of the cases ,ankers e+en force the defaulters to commit suicide.
7owe+er influential persons easily gets loans amounting to hundreds of
crores of rupees2 coolly defaults2 siphons-off the funds & shuts his
shop. "o reco+ery at all 2 Dust it ,ecomes a non- performing asset
?"A%@ in the ,ank ledger. #he total "A%s of all pu,lic sector ,anks is
more than $s.:5555 crore. #his ,urden is spead o+er the crores of
hapless indians.
#he go+ernment takes pride in murdering forest ,rigand +eerappan. #he
ill-gotten wealth of +eerappan is not e+en pea nuts ,efore this huge
amount. $emem,er past finance scams I ES S7OS2 7%B%L%2 7%$S7%!
E7#%
S7%$ S'%E2 6#%" A%$67 S7%$ S'%E2 &#I2 etc. totally in all these
scams ,illions of dollars of pu,lic money ha+e gone to the coffers of
criminals. #hese scamsters put +eerappan to shame in their turno+er.
7owe+er the go+ernment is not e+en e3hi,iting a fraction of it=s
LIEI"%# V$%AA%" !$IV against these scamsters2 whyC
In india2 ,oth central & state go+ernment ta3. re+enue officials are
neck deep in corruption. )y2 taking ,ri,e they make lower assessment
of income2 gains2 etc & spare ,usinessmen from the ta3 payment. #he
go+ernment in return for fa+ours recei+ed from
lo,,ies2 gi+es ta3 e3emptions to them at it=s sweet will. %ll these
scams & it=s co+er-ups are insider Do,s. #he go+ernment is not
interested to collect2 reco+er it=s own monies
amounting to ,illions of ,illions of dollars e+ery year. 7owe+er our ;-
star leaders li+ing at the e3pense of ta3-payers2 go-on foreign Daunts
with a ,egging ,owl for a few lakhs of dollars. Bhat a shameC
Eore than ;5 ,illion indians are ,arely sur+i+ing on a single meal per
day & hundreds are dying due to star+ation2 ,illions don=t e+en ha+e
,asic necessities of life. If the go+ernment e+en Dust collects a
fraction of it=s dues from scamsters2 defaulting industrialists I
people won=t die of hunger in india. 7as this enlightened our thick
skinned netas C


ditorial - 'rimes ( $eser+e )ank of India
- %n appeal to S&A$E 'O&$# OF I"!I% & central information commission
$ef no. $#I %AA%L +ia we, !A*.).455:.:58</
$)I is a pu,lic authority 2 set up ,y an act of parliament. "umerous
irregularities 2 illegalities 2 crimes ha+e taken place at $)I 2 still
it is fully co+ered up ,y those in influential positions.

Just refer POil for Food Eoney in Ira> scam Q and P Vostro %ccount Scam of
/005sQ. Influential people are in+ol+ed 2 e+erything happened under the noose of
$)I 2 Bith the conni+ance of $)I officials C

Be re>uested the 'AIO of $)I 7J for information as per $#I %ct ? our
letter dt 45th Septem,er 455: @ a,out +arious issues concerning the
acti+ities of that institution in whole. 7owe+er the 'AIO OF $)I 7J
through his letter no.!%AE.'O.$I%.<55/.51.;5.5/.455:-50 dt Octo,er
58rd 455: declined to gi+e information citing certain ruses. ? $)I $ef
no. $I% 10:.455:-50 @
7e has stated that some information pertains to security press 2
nashik & note press at mysore. #rue 2 ,oth those institutions are
fully owned su,sidiaries of $)I 2 hence $)I is in a position to
answer. Still 2 $)I can transfer a copy of our $#I %pplication to
those authorities as per pro+isions of Sec 9?8@ of $#I %'# 455;. 'AIO
didnNt do that.
One more ruse of 'AIO of $)I is that 2 I am seeking his +iews .
opinions on issues concerning $)I acti+ities. 7e is wrong 2 I am
seeking to know the official . legal stand of $)I regarding itNs
acti+ities for e3ample 2 appointment of rowdies as loan reco+ery
agents ,y ,anks 2 etc. 'AIO has failed to state the official stand
regarding +arious acti+ities of $)I.
One more ruse gi+en ,y 'AIO of $)I is that I ha+e raised many issues 2
to ,e specific /58 >uestions on +arious topics concerning $)I 2 gi+ing
information on all those di+erts the resources of authorities 2 hence
information re>uest is denied. #$& 2 information sought is many 2 so
do the crimes ( $)I which are also many. Bhen compared to magnitude of
crimes ( $)I which is 8-< times the entire ,udget outlays of Indian
go+ernment to the tune of crores of rupees 2 the resources spent to
ascertain information as per our $#I %pplication is Dust few hundreds
of rupees. Bhen compared to the money spent ,y $)I officials ,y way of
#% . !% during their tra+el 2 etc2 our information re>uest resource
needs are peanuts.
#o sum up 2 'AIO of $)I is hell ,ent to protect the criminals ( $)I
lest the truth comes into open. 7ere,y 2 we re>uest the honoura,le
Supreme 'ourt of India & central information commission to order the $)I to
gi+e us truthful
information in whole 2 so that Dustice is gi+en to those +ictimiLed &
fat criminals are sent to gallows. J%I 7I"!. V%"! E%#%$%E.
$ead the article O'rimes ( $S$V )%"6 OF I"!I%O
( http-..theftinr,i.,logspot.com.
2 http-..theftinr,i.rediff,logs.com. 2 http-..theftinr,i.wordpress.com.
HourNs sincerely2
"agaraD.E.$.


#he hawala trail
A$%V" SB%EI

)$I#IS7 officials are in+estigating the acti+ities of one of the most prominent
o+erseas ,ackers of secessionist groups in Jammu and 6ashmir. Last month2 the
&nited 6ingdom=s 'harities 'ommission and the Eetropolitan Aolice ,egan
looking into allegations that %yu, #hokar2 the head of the Borld 6ashmir
Freedom Eo+ement2 had funnelled funds raised for charity to the terrorist groups.
In+estigations into #hokar=s role in funding terror ,egan after Indian officials
handed o+er e+idence in the case to their )ritish counterparts in June. #he two
Indian officials from the Einistry of 7ome %ffairs and a senior Jammu and
6ashmir Aolice officer made a+aila,le details of funds funnelled from #hokar=s
charity2 Eercy International2 through Standard 'hartered *rindlays )ank ?since
then renamed Standard 'hartered )ank@ and the !e+elopment 'redit )ank. #he
in+estigators also pro+ided transcripts of telephone intercepts and cases filed
against the recipients of the funds in India.
On Eay 4;2 a long-running Intelligence )ureau operation led to the arrest of
Srinagar-,ased Dournalist ImtiaL )aLaL. Officials claim that he was a key conduit
for transferring funds to 7iL,ul EuDahideen field commanders in Jammu and
6ashmir. On %pril 44 )aLaL had recei+ed a foreign currency remittance of
$s.<2:<2:1; into his account with Standard 'hartered in "ew !elhi2 and on Eay /;
a second remittance of $s./<20:2555 into the !e+elopment 'redit )ank. %lthough
intelligence officials monitored the first transaction2 they did not inter+ene2 in the
interest of ,uilding up e+idence. #he second transaction was froLen.
#he funds trail led straight to #hokar. It transpired that in early 455/2 7iL,ul
EuDahideen chief Eohammad Husuf Shah had sent $s.<: lakh to Jamaat-e-Islami
leader Syed Salahuddin through #hokar. Su,se>uently2 after the arrest of Jamait-
ul-EuDahideen finance commander Jasim Faktu2 #hokar ,egan to finance his
organisation through the terrorist=s wife2 %siya Indra,i. Eost of the funds were
routed through )aLaL2 who arranged for the transfer of funds recei+ed in "ew
!elhi to accounts held with the Jammu & 6ashmir )ank in Srinagar. 'ash was
then paid to the final recipients.
Eeanwhile2 Income #a3 !epartment in+estigations against %ll Aarties 7urriyat
'onference ?%A7'@ leader Syed %li Shah *eelani ha+e started to ,ear fruit
?"ro&tli&e2 July ;2 4554@. #he secessionist leader claimed an annual agricultural
income of $s./52555 in his ta3 returns2 and also recei+ed the official pension of
$s.:;2455 due to two-term EL%s - ironically enough for a man now at the cutting
edge of the secessionist anti-election campaignR 7is e3pensi+e house in
7yderpora2 howe+er2 had se+eral cars parked there and the household was run ,y
a personal staff of /< people. #he monthly kitchen e3penses amounted to
$s.4;2555. Income #a3 !epartment searches of the *eelani home also yielded
$s./5.4; lakhs and S/52555 in cash. Income-ta3 officials ha+e now decided to
impose penalties of $s.85 lakhs on *eelani2 ,ased on his estimated income o+er
the last si3 years2 the ma3imum period allowed ,y law. 7is ,usinessman son-in-
law %ltaf %hmad Shah2 who allegedly used his legitimate operations to launder
funds2 has ,een slapped with a $s.<5 lakhs penalty. Failure to pay could lead to
the auctioning of *eelani=s assets2 including the 7yderpora home.
Separate income-ta3 penalties of $s.4 crores ha+e ,een imposed on
,usinessman %,dul $ashid Saraf2 who was allegedly in+ol+ed in handling hawala
funds sent to %A7' chairman %,dul *ani )hat. Saraf2 income-ta3 authorities
found2 had failed to disclose income of $s.8.81 crores o+er the last si3 years.
#he +igour that the Income #a3 !epartment has shown in this matter marks a
welcome departure from the past. %fter it was dri+en out of Srinagar in the later
/0:5s ,y mo,s that attacked income ta3 inspectors2 the organisation had granted
de-facto independence to the State. #his time2 two planeloads of officials flew into
the %+antipora %ir Force ,ase and they were escorted to the raids ,y police
officers. #heir successes seem to ha+e con+inced the Income #a3 !epartment
that it is after all possi,le to play a useful role in Jammu and 6ashmir.
In the &.6.2 ,oth Eercy International and #hokar will now ha+e to answer some
hard >uestions. For one2 there is no e3planation why the organisation did not
send supposed philanthropic donations to the se+eral-doLen charities in Jammu
and 6ashmir which ha+e clearances under the Foreign 3change Eanagement
%ct. #hokar will also ha+e to e3plain how he paid for the purchase of his London
home2 and his regular o+erseas tra+els2 gi+en the fact that he has no ostensi,le
means of income. India has2 howe+er2 chosen not to seek #hokar=s e3tradition2
since the fact that his wife is a &.6. national makes this outcome unlikely.
For India2 )ritish action in this case will ,e a key test of its loudly-ad+ertised anti-
terrorist stance. In Earch2 sources told "ro&tli&e2 !eputy Arime Einister L.6.
%d+ani had handed o+er to )ritish Foreign Secretary Jack Straw a dossier on the
acti+ities of secessionist groups in the &.6. #itled =Eisuse of )ritish Soil ,y
6ashmir 3patriates )ased in the &.6. for Funding #errorism in J&6=2 the
document outlined many of the charges which in+estigations ha+e now added
su,stance to. Sources say the team that +isited the &.6. pointed to Straw=s
promises to crack down on terrorism-related money laundering2 and were told
that criminal prosecutions would take place in the &.6. arlier2 the &.6.
successfully prosecuted two 6halistan-linked )ritish nationals in+ol+ed in
,acking the )a,,ar 6halsa International.
If funds transfers to terrorist groups are effecti+ely cut off2 it will do not a little to
cripple such organisations. #he reasons are simple. Bhile it is easy to send
cadres across the Line of 'ontrol2 actually sustaining their acti+ities in Jammu
and 6ashmir needs an ela,orate financial structure. Eoney is needed to pay for
e+erything from food and shelter to informants2 political support and the legal
defence of arrested sympathisers. Since it is impossi,le to lug sacks full of cash
across the Lo'2 illegal funds transfers come into play. For many ,usinessmen in
the 6ashmir Valley2 holding such cash for short terms has ,een a profita,le2 risk-
free enterprise. "ow the penalties imposed should persuade conduits for ,lood-
money transfers that crime does not2 in fact2 pay.


%l-Jaeda routing money to India +ia urope


"ew !elhi2 Ear 9- uropean countries are ,eing used as hot destinations ,y
terror group al-Jaeda to route money to India2 according to a report ,y Aeru+ian
Financial Intelligence &nit ?FI&@.
#he report said the FI& had found at least one case of such suspicious
transaction ,y al-Jaeda e+ery month and shared them with the &S in+estigators.
O#he FI& also reports tracking cases similar to that of an OF%'-designated ?&S
Office of Foreign %ssets 'ontrol@ of al-Jaeda element mo+ing money from
urope through Lima and on to India2O the report leaked ,y Bikileaks2 a non-profit
media organisation dedicated to ,ringing important information to the pu,lic2
>uoting FI& head nri>ue Saldi+ar disclosed.
O%sked if this al-Jaeda case was the first of its kind or they had seen similar
cases ,efore2 Saldi+ar told "%SOff that they see a,out one case a month2O the
ca,le said.
#he FI& recei+es and analyses S#$s2 may re>uest additional information rele+ant
to cases or operations related to money laundering or terrorist financing2
pro+ides Financial Intelligence $eports ?FI$@ to the Au,lic Arosecutor=s Office2
participates and.or re>uests Doint in+estigations2 and coordinates with foreign
FI&s and entities.
OOf the 121/5 suspicious acti+ity reports e3amined ,y FI& analysts in 45502 1:/
resulted in financial intelligence reports sent to the Au,lic Einistry for further
processing and in+estigation.
O)ased on these 1:/ intelligence reports2 the FI& concludes more than 8 ,illion
&S! mo+ed illegally through Aeru==s financial sector in 45502O it said.
O:8 per cent of this amount2 according to the FI&2 is related to drug trafficking.
#he other /1 per cent is reportedly related to fiscal fraud2 corruption and illegal
gun dealing. 'urrently2 85: of these intelligence reports are at +arious stages of
in+estigation and prosecution in the legal system as compared to four cases in
455:2O the ca,les read.
%ccording to Saldi+ar2 anti-money laundering efforts in Aeru are hindered ,y
se+eral factors.

Stan'hart prospectus >uiet a,out cases

Eum,ai- Standard 'hartered Alc2 ?Stan'hart@ which is set to hit the market with
the first e+er issue of Indian depository receipts ?I!$s@ on 4; Eay2 has not
disclosed many pending cases against it for alleged +iolation of foreign e3change
remittance norms in the draft red herring prospectus su,mitted to the capital
markets regulator.
#he alleged +iolationsT/1 transactions of drafts2 one tele3 transfer and two cash
transactionsTgo ,ack to /00/-042 when the nforcement !irectorate ?!@ found a
series of fore3 +iolations made through the ,ankNs Eum,ai ,ranches to the &6.
! is a go+ernment agency that looks into foreign e3change transactions.
#he +iolations were disco+ered after ! in+estigated a num,er of ,anks2
including Standard 'hartered2 in the aftermath of the 7arshad Eehta scam that
rocked the stock markets in /00/-04.
#he ! complaint was filed in the court of chief metropolitan magistrate in
Eum,ai ,y enforcement officer S. Aar+eL in Eay 4554.
#hese complaints2 which are still pending2 charge the ,ank and its then chairman
$odney *alpin of Ptotal +iolationQ of the e3change control manual and pro+isions
of then pre+ailing foreign e3change regulation norms.
Mi&t has re+iewed copies of some of these case files.
#he Issue of 'apital and !isclosure $e>uirements ?I'!$@ norms2 laid down ,y the
Securities and 3change )oard of India ?Se,i@2 re>uire any firm floating a pu,lic
issue to disclose all pending proceedings initiated for economic offences against
the issuer or its directors2 as well as the present status of such cases.
Stan'hart said that it has no Pmaterial litigationQ to disclose. #he ,ankNs
spokesman %riDit !e said the lender has applied the rele+ant materiality standard
in arri+ing at the disclosures.
In response to an email >uestionnaire2 he said the ,ank would comply with the
applica,le laws2 regulations and international practice with regard to material
information disclosure and uniformity of disclosures.
P%ccordingly2 in relation to disclosure on litigation2 as pro+ided under the
pro+isions of the Se,i ?I'!$@ regulations2 45502 as amended2 Standard 'hartered
Alc2 as an issuer of I!$s2 is re>uired to disclose Umaterial litigationN. In
considering whether disclosures are necessary in relation to litigation2 Standard
'hartered Alc has applied the rele+ant materiality standard. On this ,asis2 no
litigation is re>uired to ,e disclosed2Q the email said.
&nder Se,i rules2 the so-called materiality of a case must ,e Dudged on three
,road parameters- >ualitati+e nature2 litigation or defaults that may not ,e
material at present ,ut might ha+e a material impact later2 and litigations that may
not ,e material indi+idually2 ,ut may ,e found material collecti+ely.
% >uestionnaire to Se,i on whether it has granted any special e3emption to
Stan'hart for the I!$ remained unanswered.
% senior lawyer at a national law firm said- P%ll pending litigations that ha+e a
,earing on the issue should ,e disclosed in the prospectus as per I'!$
regulations. Eoreo+er2 the issue of materiality +aries from case to case and is
su,Decti+e. If I were an underwriter2 I would ha+e disclosed the status of the cases
and Dustified if the cases ha+e any material impact on the companyNs ,usinesses
or not2 in the prospectus.Q #he lawyer did not want to ,e identified.
Earket analysts say there is no definiti+e yardstick for deciding the importance of
a case.
PEateriality is su,Decti+e and Dudgemental2Q said Arith+i 7aldea2 chairman and
managing director of Arime !ata,ase2 a primary market tracker. P#he merchant
,anker2 issuer and lawyer can collecti+ely take a call on whether a matter is
material or not.Q
7owe+er2 if these matters are decided in court and pro+en to ,e material2 the
issuers2 ,ankers and lawyers can ,e taken to court for su,stantial damages2 he
added.
#he amount in+ol+ed in the /1 transactions listed ,y ! and facilitated ,y the
,ank ,etween Fe,ruary /00/ and Septem,er /004 is $s< crore. #he ,ank also
allegedly facilitated a telegraphic transfer of $s/.; crore. %"K *rindlays )ank2
which was ac>uired ,y Stan'hart in 45552 allegedly helped the same entities
transfer around $s;; crore. Separate cases are pending against ,oth ,anks in the
matter.
%ccording to the case files2 Irish rug,y player 6eith Fair,rother was the key
,eneficiary of the transfers. 7e owned a company2 Indo International2 earlier
known as astern Su,ur,s2 ,ased in the &62 ,ut with ,ank accounts in ,oth
names in India as well as the &6.
Fair,rother is said to ha+e facilitated a few import-e3port deals ,etween some
Indian firms and their counterparts in the erstwhile &nion of So+iet Socialist
$epu,lics ?&SS$@. Since India and &SS$ had ,ilateral trade pacts2 any payment
to entities there needed to ,e routed through the $eser+e )ank of India ?$)I@ with
appropriate appro+als and sanctions. Fair,rother2 the files claim2 ,roke these
rules using +arious foreign ,anks2 including Stan'hart.
#hrough his associate 6uldip Singh Sood in India2 Fair,rother would collect
Indian rupee drafts drawn ,y an Indian ,ank on its domestic ,ranch. %llegedly
with the conni+ance of Stan'hart2 he would get them cleared without making any
declarations or taking any appro+als and credit the amount to a +ostro account of
Stan'hart London and Eanchester. #hese ,anks would2 in turn2 transfer the
amount to a ,eneficiary of the same name in the &6.
% +ostro account is the local currency account held ,y a local ,ank for a foreign
one. Such accounts are used for inter-,ank transfers2 and money transfers to
non-residents need $)INs nod. ! has charged that the ,ank and its then 'O
+iolated these rules.
% senior ,roker2 on condition of anonymity2 said that as a matter of principle2 the
company should pu,lish all pending legislation and lea+e the >uestion of
materiality to in+estorsN Dudgement.
P)y choosing to ignore pending legislations2 they are setting a ,ad e3ample for
the companies coming to list such instruments in future2Q he said.
&.su'ra(a&ia&)li*e(i&t.+o(

3cise scam money used to fund terror=


A%"%JI- Opposition leader Eanohar Aarrikar on #hursday said he would write to
Arime Einister Eanmohan Singh2 fearing that money from a multi-crore e3cise
scam linking *oa with Indian ,order states is ,eing used to fund terrorist
acti+ities.
Aarrikar has also alleged that the state e3cise department has ,een issuing
permits to companies furnishing ,ogus addresses.
Incidentally2 the state go+ernment=s reply that the state
finance secretary is in+estigating earlier allegations made ,y Aarrikar on the
e3cise scam has not satisfied the opposition leader2 who has demanded that the
matter ,e immediately handed o+er to the 'entral )ureau of In+estigation ?')I@.

$aising the matter during >uestion hour2 Aarrikar said that illicit alcohol
consignments worth crores of rupees are ,eing sent to ,order states in the north
and north-east of India.
OEoney from this scam is ,eing used to fund terror networks. #he e3cise
departments from other states such as AunDa,2 $aDasthan and the north eastern
states are in+ol+ed2O he said. #he opposition leader also reminded the 7ouse that
he had first made these allegations in the last assem,ly session.
OI ,elie+e the prime minister is an upright person and I will write to him to pro,e
into this2O Aarrikar said. 'hief minister !igam,ar 6amat2 howe+er2 did not commit
to a criminal in+estigation into the scam.
O#he finance secretary is currently conducting an in>uiry into the matter2O he told
the 7ouse.
Aarrikar retorted- O#he finance secretary does not ha+e powers to conduct such
an in>uiry. Be ha+e to +erify the signature of the superintendent of e3cise on the
order2 which the finance secretary will not ,e a,le to do. 7e cannot go to AunDa,
and $aDasthan to in+estigate the matter.O
O#he only thing that needs to ,e in+estigated is who made the payment for the
/.5< lakh litres of alcohol that was imported in Septem,er. #race the source of
payment and you will find out who the culprit is2O Aarrikar said.

&)S deal died o+er une3plained money


Eum,ai . Aune- #he reluctance of a top Swiss ,ank to help Indian in+estigators is
slowing the unra+elling of an intricate multinational trail of money transfersT
across SwitLerland2 "ew Hork2 the )ritish Virgin Islands and AuneT,etween an
Indian horse owner and a fugiti+e Saudi arms dealer2 according to officials in the
nforcement !irectorate2 the go+ernment ,ody that in+estigates economic
crimes.
% top official in the nforcement !irectorate ?!@ who did not wish to ,e
identified confirmed on Friday that the agencyNs officials2 in !ecem,er 45512 had
ad+ised the Indian go+ernment not to clear a $s<91 crore plan ,y &)S ?&nited
)ank of SwitLerland@ %*2 the worldNs ,iggest wealth management company2 to
,uy the Indian mutual fund ,usiness of Standard 'hartered )ank ,ecause the
Swiss ,ank had not helped track international money transfers of Aune horse
owner 7assan %li 6han.
In+estigators from the !2 who recently claim to ha+e found S: ,illion in the
Swiss ,ank accounts of 7asan %li 6han2 say they now ha+e e+idence of a S855
million transfer to him ?+ia a 'hase Eanhattan ,ank account in "ew Hork@ from
,illionaire Saudi arms dealer %dnan 6hashoggi2 whose arms supplies to #amil
terrorists2 the L##2 were re+ealed during an in+estigation into the /00/
assassination of $aDi+ *andhi.
alt="Home turf: Hassan Ali Khan (second
from right, in safari suit) with wife Rheema (second from left) and father-in-law Abbas Ali
Khan (fourth from right) " title="Home turf: Hassan Ali Khan (second from right, in safari
suit) with wife Rheema (second from left) and father-in-law Abbas Ali Khan (fourth from
right) " !:sha"es="#$%%%%#s&%'(")7ome turf- 7assan %li 6han ?second from right2
in safari suit@ with wife $heema ?second from left@ and father-in-law %,,as %li
6han ?fourth from right@.
%s the )om,ay high court hears an nforcement !irectorate plea not to return
passports to 6han and his wife $heema2 the%i&dusta& ,i(eshas pre+iewed a
secret ! report that re+eals the agencyNs attempts to find the links ,etween
6han and 6hashoggi.
%s e+idence the report >uotes a notation2 Pfunds from weapon salesQ2 made ,y
&)S %*2 a top-tier in+estment ,anking and securities firm2 after it froLe an
account ,elonging to 7assan %li 6han2 the Aune horse owner2 following the S855
million transfer to himTit isnNt clear whenT from 6hashoggi.
PI would not like to talk a,out this2Q said &)S India managing director and
chairperson Eanisha *irotra2 referring all >uestions to the ,ankNs spokesperson.
P%s a truly glo,al entity2 our policy on such issues is to comply with the laws and
regulations in each host country2 while at the same time2 complying with the
,anking laws in SwitLerland2Q the &)S spokesperson said in an email. #he
spokesperson declined to comment specifically on the arms sale notation.
#he go+ernment has told the )om,ay high court that the 6hans are P+irtually
a,scondingQ and if they are allowed to lea+e India2 in+estigations could collapse.
6hanNs counsel2 Eilind Sathe2 said his client Pregularly appeared ,efore the
!irectorateQ. %sked where 6han was2 his main lawyer2 Eugdha Jadha+2 said-
P'anNt tell you2 sorry.Q
%t Aune race course2 %, found 7assan %li 6hanNs father-in-law2 %,,as %li 6han2
who said his son-in-law was Pnot wellQ and in Eum,ai. 7e dismissed all
allegations.
7assan %li 6han has three Indian passportsTissued from Aune2 Aatna and
Eum,aiV he also applied for passports from *uwahati and 'handigarhT and he
and his wife ha+e applied to SwitLerland for citiLenship2 another ! official who
did not wish to ,e identified said. Aassport authorities in those three cities are
now trying to find out how three passports were issued to 6han.
6ashoggi now li+es a >uiet life in the principality of Eonaco. #here is a )ritish
warrant out for his arrest.
%nother top official at ! who also did not wish to ,e identified said 6ashoggiNs
S855-million transfer was Ponly the tip of the ice,ergQ and that the agency was
trying to connect the dots in the glo,al trail2 which also includes e+idence of
another S405 million in two Pfictitious companiesQ created ,y 7assan %li 6han
and a friend in the )ritish Virgin Islands in the 'ari,,ean. %ll the money transfers
are recorded in a laptop seiLed in January 4551 from 7assan %li 6hanNs house in
Aune and while in+estigators ,elie+e this is laundered money2 there is no direct
e+idence. #hey would also need corro,oratory e+idence to esta,lish that these
transfers ha+e anything to do with terror networks.
P#hese are all false allegations2Q said Sathe. %sked a,out the S855 million
transfer from 6hashoggi2 he said- PBhen the nforcement !irectorate >uestions
us2 we shall gi+e a reply.Q
#he ! official2 who confirmed the agencyNs in+ol+ement in spiking &)SN deal
with Standard 'hartered2 said the Swiss ,ank had told Indian in+estigators to get
a letter rogatory2 a formal re>uest from an Indian court to a Swiss court. #his is a
complicated process and would ha+e needed to ,e routed through the ministry of
e3ternal affairs2 and it would ha+e in+ol+ed finding and presenting clear e+idence
of 7assan %liNs links to terror.
It now seems apparent that &)SN stand in the ongoing in+estigation led to the
collapse of its deal with Standard 'hartered )ank.
In a !ecem,er report2 Mi&t said that the $eser+e )ank2 IndiaNs ,anking regulator2
would not appro+e the deal ,ecause of possi,le money laundering through the
Swiss ,ank in+ol+ing certain transactions of 6han. On Friday2 $)I declined to
comment. PBe are a ci+il ,ody2Q a spokesperson said. PBhene+er we find
+iolations2 issued to ,e in+estigated2 we hand o+er the information to the
nforcement !irectorate. Be ha+e not issued any comments on the issue of
&)S.Q
In !ecem,er2 Standard 'hartered2 the parent of Standard 'hartered )ank in India2
sent a notice to stock e3changes in London and 7ong 6ong2 where it is listed2
saying it would not proceed with the deal2 without gi+ing a reason.?7industan
#imes@


'$IES OF $)I & ')I & I#=S 'OV$-&A
- %n appeal to honoura,le supreme court of India
#he central ,ank of India $eser+e )ank Of India 2 which is supposed
to direct the fiscal policies of go+ernment of India 2 has failed to
do so. It has ena,led many looters in the gar, of entrepreneurs 2 to
swindle the e3che>uer to the tune of crores of rupees. #he premiere
in+estigating agency of India ')I has failed to nail the culprits.
7ere,y 2 I do re>uest the honoura,le supreme court of India to treat
this as a AIL application & to pro+ide speedy Dustice in following
cases.
$ead the article O'rimes ( $S$V )%"6 OF I"!I%O
( http-..theftinr,i.,logspot.com.
2 http-..theftinr,i.rediff,logs.com. 2 http-..theftinr,i.wordpress.com.
$ead the article OAF scam shame shame DudgesO (
http-..corruptmaDority.,logspot.com. 2
http-..corruptDudges.rediff,logs.com.

%" %AA%L #O &"IO" FI"%"' EI"IS#$ *OV$"E"# OF
I"!I%
%n age old saying I %S #7 6I"* SO !OS #7 S&)J'#S. In india +arious
financial scams2 crimes & it=s co+er-ups ha+e taken place amounting to
,illions of ,illions of dollars ha+e taken place2 made possi,le 2 Dust
due to the in+ol+ement of the king I the netas & go+ernment officials
themsel+es in the shameful act I the crime.
#he ta3 officials are utterly corrupt2 the wards of these officials
spend dou,le their pappa=s salary Dust during
weekends. "ow2 realise their financial might. #hese ill-gotten wealth
is desta,ilising our economy & might ha+e e+en found it=s way into the
hands of underworld2 terorrists. I"!I% BILL ) !F%#! F$OE
'$IEI"%L FO$'S BI#7I" LI6 #7IS "O# F$OE #7 G#$"%L FO$'S.
7ere,y2 the 7$B urges you to make pu,lic-
/. the financial worth of finance minister to ta3 official at circle
le+el2 on annual ,asis including his spouse=s worth & property
details.
4. to make pu,lic the "A%s2 losses & monies under litigation ,y ,oth
pri+ate & pu,lic sector ,anks annually.
8. to make pu,lic measures taken to reco+er these monies.
<. to pu,lish annual accounts with complete details of discretionary
funds allotted to the defence ministry2 president2 prime minister2
chief ministers 2 go+ernors & intelligence agencies.
Au,lic want to know whether proper discretion is ,eing applied while
spending.


$.).I '&$$"'H #7F# '%S I 'OV$-&A %'# )H '.).IC
- %" %AA%L #O #7 &"IO" FI"%"' EI"IS#$ & '"#$%L
VI*IL%"' 'OEEISSIO"
+en in ordinary ,ranches of ,anks 2 the safety
locker room keys & currency chest room keys are with senior managers
only. with ad+ance of technology +arious electronic gadgets like
,urglar alarms2 user id & palm readers are in use. It is >uite
shocking to know that 2 in high security $)I '&$$"'H A$SS 2 mysore
these gadgets were not in use & the keys were easily accessi,le to
ordinary security guards. %lso2 in mysore press there is no proper
accounting practices for ,lank papers issued for printing 2 after
printing is done accounts of accepted notes & reDected notes is not
at all kept. ')I is putting the whole ,lame on an ordinary security
guards & hurrying to close the case. #he repeated thefts are not at
all possi,le ,y security guards alone without the help of insiders .
higher e3ecuti+es. ')I is trying to fool whomC
+en with respect to my complaint regarding
recruitment scandal complaint no- !A*.).455;.:55<0 ?4@ ?$)I@ new
complaint no- !A*.K.455;.055<52 neither ')I nor secretary ? finance
sector @ department of economic affairs go+ernment of india nor the
$)I go+ernor has taken any steps till date 2 whyC
7ere,y2 e-+oice urges the honoura,le union finance
minister & '"#$%L VI*IL%"' 'OEEISSIO" to look into the matter & to
pro+ide speedy Dustice to all concerned.

'.).I 'OV$I"* &A #7F#S I" $.).I
Lie detector tests for '.).I officers C

"owadays e+en free e-mail accounts need password to operate2 to
operate a ,ank locker there are multi le+el security settings.
7owe+er 2 it is ridiculous2 un,elie+a,le to note that in the high
security reser+e ,ank of india currency note press mysore2 there were
no different key sets 2 palm readers2 pass words2 no different
authorised persons2 no troops of security guards2 to access the area.
Just only one security guard- a consta,le.
It is a cock & ,ull story of '.).I2 that all alone a single security
guard stole the ,ooty. #here must ,e a crime syndicate. #he '.).I
officers themsel+es must ,e su,Dected to polygraph2 ,rain mapping
tests to know why they are lying 2 to co+er-up whomC #he '.).I has
not answered pre+ious >uestions raised ,y us. #he '.).I must answer
the following >uestions -
/. who were responsi,le for selling the good printing machine at
security press nasik to scamster karim lala telgi as scrap C
4. who recruited the candidates ,elow merit rankings in $.).I for
what criminal roles C
8. how many irregularities ha+e taken place in $.).I till date C
<. who is responsi,le for installing2 operating & super+ising the
security set-up in $.).I C
;. how the raw materials ie num,er of paper sheets2 ink2 etc are
accounted for in inward stores & while issuing for printing C
9. how wastages2 scrap of ink 2 papers 2 etc in the printing process
are accounted forC
1. 7ow the finished goods ie currency notes are accounted for C
:. Bho keeps physical figures & possession of goods2 in+entory of all
the a,o+eC
0. 7ow the scrap paper is disposed off C
/5. From security angle who keeps track from start till dispatch C

ILL*%L $'$&I#E"# I" $.).I '&$$"'H "O# A$SS $S&L#I"* I"
F$J&"# #7F#S CCC

!ear sir2
I ha+e applied for the post of S#O$S %SSIS#%"# in
/00; & for the post of A$O'SS %SSIS#%"# in /009 for +accancies at
)haratiya $eser+e )ank "ote Eudran Ari+ate Limited ? )$)"EAL@ EHSO$
& S%L)O"I. I didn=t e+en get the inter+iew.written test call letter.
7owe+er candidates with lesser merit ranking were selected. Ey
re>uests for a copy of merit ranking list fell on deaf ears.
In the end of /0092 i once again applied for the
posts of A$O'SS %SSIS#%"# & E%I"#%"%"' %SSIS#%"# at )$)"EAL.
#his
time
round i got written test call letters for ,oth posts. I ha+e
successfully cleared the common written test for ,oth posts.
Su,se>uently i got the inter+iew call letters for ,oth posts. I ha+e
successfully appeared for the common inter+iew for ,oth posts.
7owe+er candidates of lesser merit were selected & i didn=t get any
communication at all. Ey repeated re>uests for E$I# $%"6I"* LIS#
fell on deaf ears.
It is the criminals in $.).I E%"%*E"# who
declared a good printing machine at nasik security press as scrap &
sold it to fake stamp paper king pin karim lala telgi It may ,e
possi,le that the criminals in the $.).I E%"%*E"# selected
candidates who suited their criminal o,Decti+es. %s a result there is
fre>uent occurrence of currency thefts & related
irregularities at $.).I '&$$"'H "O# A$SS2 mysore & sal,oni.
7ere,y2 i call upon the '.).I to look into this matter.
%lso2 here,y i urge you to pro+ide me Dustice ,y gi+ing merit ranking
lists of all recruitments made from /00;onwards till date.
Specifically2 for the a,o+e mentioned < posts in accordance with the
#$%"SA%$"'H .$I*7# #O I"FO$E%#IO" %'# of go+ernment of india.

S%#H%E 'O F$%&! - %$ HO& SI"'$LH $%!H #O '%#'7 #%G #7IVS 2
'O$AO$%# '$IEI"%LS C - %" %AA%L #O &"IO" FI"%"' EI"IS#$ &
6%$"%#%6% S#%# FI"%"' EI"IS#$

'orporate fraud is nothing new to india 2 satyam company is Dust a
new addition to it. Satyam co was a,le to commit such a huge fraud &
keep it under wraps for years goes to pro+e the honesty 2 integrity of
our pu,lic ser+ants 2 go+ernment officials ,elonging to S)I 2 $)I 2
ta3 dept 2 pollution control 2 la,our depts. 2 etc & the honesty of
auditors & company secretaries. Ofcourse 2 still there are few honest
people in pu,lic ser+ice 2 auditing & company secretaryship 2 ,ut
maDority of them are hand in glo+es with corporate criminals.
!efinitely 2 this fraud will also ,e ,rushed under the carpet after
certain time as other frauds happened 2 afterall these frauds are the
money spinners for political party funding 2 mafia 2 underworld &
other criminal acti+ities.
In india 2 ta3 compliance is worse. In our criminal Dustice system2
there is rigorous imprisonment for a pick-pocketer stealing $s./5.
e+en the authorities spend thousands of rupees in legally prosecuting
him & the thief spends a year or more as punishment ,ehind ,ars. Bhere
as there is no commensurate in+estigation nor legal prosecution nor
punishment for corporate thie+es 2 e+ading ta3 to the tune of crores
of rupees. In contrast2 those ta3 thie+es pay a part of that ,ooty to
the ministers & political parties and get crores of rupees ta3
e3emptions 2 incenti+es from the go+ernment. *o+ernment is rewarding
corporate criminals.
#he ta3 officials of central & state go+ernments
are hand in glo+e with these corporate criminals & traders. For a
price2 they are helping corporates & traders in e+ading ta3. Eost of
the ta3 officials are wealthy & leading lu3urious lifestyles 2 much
,eyond the scope of their legal income. #he ,lack money thus generated
e+ery year ,y ta3 e+asion 2 is many times more than our total annual
,udget allocation. %s a result2 all our fiscal reforms fail &
inflation is soaring. #his ,lack money is the source of illegal
funding of political parties 2 terrorist outfits & underworld. It is a
greater threat to national unity & integrity.
)oth the central go+ernment & karnataka state
go+ernment ha+e failed to collect the full 2 actual ta3 dues from
corporates & traders. %s a result 2 the go+ernments don=t ha+e enough
money in their coffers e+en to pro+ide ,asic needs like health care 2
education 2 safe drinking water 2 etc to the poor & needy. For e+ery
$s./55 ta3 e+aded 2 one poor patient is dying without medical care 2
/5 poor persons lack education 2 /55 persons don=t get safe drinking
water 2 /55 persons ,arely sur+i+e on a single piece meal per day 2 45
persons star+e. Eost of #he go+ernment officials 2 ministers &
people=s representati+es who ha+e deli,erately failed in their duties
of ta3 collection & welfare of poor citiLens 2 S7%ELSSLH indulge in
lu3urious lifestyle at the e3pense of poor ta3 payer . they li+e in
paltial ,ungalows 2 chauffer dri+en %' cars 2 all li+ing food e3penses
paid ,y e3che>uer 2 dine at ;-star hotels 2 only drink ,ottled mineral
water 2 eat non-+egetarian dishes 2 drink alcohol sitting ,efore
mahatma gandhi=s photograph & preaching mahatma=s ideals. Eahatma
preached & practiced simple li+ing 2 +egetarianism & he was teto
teller 2 he paid for his e3penses from his earnings . these pu,lic
ser+ants are parasites 2 who are making merry at the e3pense of ta3
payer.
Some non go+ernment organisations ? "*O@ ha+e
formed trusts and under the aegis of those trusts are running
educational institutions 2 hospitals 2 community halls 2 etc 2 in the
name of pro+iding free . su,sidised ser+ices like education 2 health
care 2 etc to the poor. It is only in record ,ooks 2 they conduct fake
medical camps 2 self employment training camps . in practice they are
running these educational institutions 2 hospitals & community halls
as commercial enterprises & collecting huge fees. they are not e+en
remitting full fees collected to the trust account & swindling the
money. no outsider is allowed to ,ecome a mem,er of these "*Os 2 only
their cronies & their family mem,ers are in these trusts.
"umerous "*Os promoted ,y religious ,odies 2 mutts
are swindling pu,lic & go+ernment money to the tune of crores of
rupees. "o,ody dares to >uestion the heads 2 pontiffs of these
mutts 2 as at his feet VVIAs 2 ministers fall down. #hese religious
,odies are hot ,eds of fundamentalism 2 terrorism & mafia. 7were is
the accounta,ility of religious ,odies & political parties in in
india C
Inspite of ,ringing specific cases to the notice
of authorities 2 they are mum C here,y 2 -VOI' OF 7&E%" $I*7#S B%#'7
offers it=s ser+ices ? su,Dect to conditions @ to the go+ernments of
india & karnataka 2 in apprehending the criminals I ta3 e+aders. %re
you readyC

E*% F$%&! )H *OV$"E"# OF I"!I% I $s :; 555 crore ta3 arrears wai+er
W non performing assets of ,anks to the tune of $s. 455 555 crore
- %n appeal to 7onoura,le Supreme 'ourt of India

India has ,ecome an I# power 2 taken giant strides in the field of
science & technology. Eore & more E"'s are in+esting in India. 7owe+er
due to our skewed 2 corrupt economic system 2 lack of accounta,ility
on the part of corporates & pu,lic ser+ants I a wide chasm has ,een
created ,etween the ultra rich & the poor 2 the fruits of de+elopment
has all ,een usurped ,y the rich & mighty. #his is the ,asic reason
for growth of ,lack economy 2 growth of na3alism 2 terrorism &
underworld in India. %s per a recent study ,y &" organiLation 2
maDority of Indians ie more than ;5 crore Indians are ,arely
sustaining on $s./8 per day earnings 2 a whole family depends upon $s.
/8 2 they are struggling to get Dust single meal per day. Aeople are
star+ing to death 2 farmers are committing suicides 2 people are
selling their own children for a ,ag of grains. Bhereas 2 corporate
,iggies 2 pu,lic ser+ants are leading lu3urious lifestyles 2 ha+ing
,ig parties full of drinks 2 non-+eg foods not at their papaa=s
e3pense ,ut at the e3pense of pu,lic e3che>uer 2 out of the ta3 dues 2
loan repayments cheated to the pu,lic e3che>uer.
#he ,anks insist on matching collateral security e+en for self
employment . educational loans ,y poor for an amount of $s.;555. if
the loans are not paid in time 2 rowdies . reco+ery agents are sent ,y
,anks to collect the amount ,y muscle power. %s a final step 2 ,anks
auction-off properties of collateral security to reco+er it=s dues.
+en2 the ta3 authorities mercilessly e3tract ta3 dues to the last
penny from the middle class.
#he same ,anks2 o+erestimate the proDect cost of corporates 2
o+erestimate the proDect feasi,ility & it=s worth and coolly e3tend
hundreds of crores of rupees loans without matching collateral
security. #he ,anks e3tend o+erdraft facilities without matching
collateral securities 2 to these corporates. Bhen loans are not
repaid2 no rowdies are sent ,y ,anks. #he promoters 2 directors of
such tainted corporates drain I off the companies resources cunningly
through insider trading 2 finally making the company sick. Such
companies don=t pay ta3es 2 electricity ,ills 2 water ,ills 2 etc
properly to respecti+e authorities. #he authorities are deaf 2 dum, &
,lind to all these actions of such corporates. %t the end 2 ,anks
write-off such loans as non performing assets ?"A%@ & file case ,efore
courts for reco+ery of dues. +en if the properties of collateral
security are auctioned-off dues cann=t ,e fully realiLed. Finally
pu,lic money is swindled . %LL #7IS IS AOSSI)L !& #O #7 'O""IV%"'
OF 6H )%"6 OFFI'I%LS 2 #%G OFFI'I%LS BI#7 '$IEI"%L 'O$AO$%#S
SI"'
#7 I"'A#IO" OF S&'7 'OEA%"IS . #7IS %LSO AOSS &"F%I$
'OEA#I#IO"
#O 7O"S# 'O$AO$%#S. 7ow to stop this C ,y making corporate
accounta,ility 2accounta,ility of ,ank 2 ta3 officials more stringent
with penal pro+isions . afterall 2 they are playing with pu,lic money
not their papa=s property.
%lready 2 ,y the conni+ance of pu,lic ser+ants 2 ,ank 2 ta3 officials
we ha+e witnessed many scams like harshad Eehta 2 ketan parekh 2
hawala 2 etc and more than $s. 4555555 crore "A%s are on the ,ooks of
the ,anks. "ow2 the go+ernment of India is planning to wai+e-off ta3
arrears of corporates to the tune of $s.:;555 crore 2 why C read
+iDaya 6arnataka kannada daily dated 5<th January 4551. Dust look at
this in the ,ackdrop of OJ&S#IO"S FO$ EO"H )H SOE EAsO and OEA
LO'%L %$% !VLOAE"# F&"! %LLO'%#IO" FO$ % A$I' S'%"!%LO.
#he
go+ernment is always unresponsi+e 2 careless towards the sufferings
of poor 2 howe+er it is always on toes to help out corporates that too
criminal ones ,ut not honest corporates. Bhy C
7$B has e3tended it=s ser+ices to *OI months ,ack itself 2 to
apprehend ta3 thie+es 2 till date there is no reply from *OI 2 why C
7ere,y 2 -VOI' OF 7$B re>uests the 7onoura,le Supreme 'ourt of India
to order *OI 2
/. to make necessary amendments to companies act 2 to make the
promoters 2 directors of the corporates personally accounta,le for all
their actions.
4. to constitute committees consisting of pu,lic persons with powers
to scrutiniLe & +erify all the actions of corporates for insider
trading like I selling products 2 materials 2 shares to their sister
concerns at discounted prices or ,uying products 2 materials 2
shares from their sister concerns at inflated prices or lending loans
at discount rates to their sister concerns or taking loans from their
sister concerns at high rate of interest or loaning materials 2
machines to their sister concerns 2 etc.
8. to constitute committees consisting of pu,lic persons 2 to
scrutiniLe & +erify the annual personal ta3 returns filed ,y key ,ank
officials & ta3 officials 2 who ha+e amassed riches & leading
lu3urious life styles much ,eyond the scope of their legal known
sources of income.
<. to reco+er all ta3 dues 2 loan dues 2 etc from the corporates from
the personal properties 2 wealth of promoters 2 directors of such
companies.
;. to put ,ehind ,ar the key ,ank officials who ha+e helped the
corporates in swindling pu,lic money ,y o+erestimating proDect
+ia,ility 2 worth and ,y o+erlooking the insider trading of promoters
and still e3tending loans to them.
9. to put ,ehind ,ars ta3 officials who ha+e helped such corporates
in swindling pu,lic money.
1. to take all the necessary help from pu,lic like as ser+ices
e3tended ,y 7$B in apprehending ta3 thie+es.
:. to reco+er & protect pu,lic money at any cost.
0. to confiscate all money 2 properties possessed ,y directors of such
criminal corporates & properties of corrupt ,ank 2 ta3 officials 2
pu,lic ser+ants.
/5. to declare illegal ,lack money kept ,y corporate criminals 2
politicians 2 etc in the ,anks of ta3 ha+en countries like #rinidad 2
Eauritius 2 SwitLerland 2 etc as national property of India 2 as
pu,lic property of go+ernment of India & to secure that money to
Indian e3che>uer.

J&S#IO"S FO$ EO"H I A%$LI%E"#%$H %'#S & L*ISL%#IO"S FO$
CCCC - improper functioning of
democracy in india

the +ohra committee report has pro+ed the criminalisation of
politics in india. #here are many num,er of criminals in the
parliament & state legislatures. Some of those criminals are ca,inet
ministers as well as mem,ers of +ital parliamentary committees.
#here,y2 they are in a position to manipulate 2 enact laws fa+ouring 2
,enefitting the criminals their cronies.
Just see how the *OI ga+e e3port incenti+e of $s./:55 crore to
reliance petroleum although it didn=t e+en e3port a ,arrel. $eliance
infocom & tata teleser+ices were '!E% mo,ile ser+ice pro+iders & ha+e
paid license fee of few crores only e>ual to landline fees without any
competiti+e ,idding . #hey were supposed to pro+ide mo,ile ser+ice to
operate like fi3ed phones within a radius of <5k.m. howe+er they were
pro+iding ser+ice like mo,ile ser+ice from one state to another like
*SE mo,ile ser+ice pro+iders. )y this act of $I' & ##SL 2 the *SE
pro+iders who ha+e paid thousands of license fee in competiti+e
,idding were economically hurt 2 the dispute went to court. #he court
was on the +erge of pronouncing it=s +erdict awarding damages worth $s.
/:555 crore to *SE players & $s. 8555 crore of license fees with
penalty to *OI. #he go+ernment announced a unified telecom license
regime with retrospecti+e effect. #here,y2 the *OI lost thousands of
crores of rupees & the share holders of *SE players lost thousands of
crores. Onceagain the $I' was charged ,y AS& ,snl #7%# $LI%"' IS $-
$O&#I"* I"#$"%#IO"%L '%LLS %S LO'%L '%LLS & SBI"!LI"* #7 *OI.
#his
time too2 *OI ,ailed it out. during the dispute ,etween am,ani
,rothers the younger am,ani mr. %nil am,ani director of reliance
himself has stated that for the fa+ours recei+ed from the *OI 2 the
company gifted some shares to then I# & 'OEE&"I'%#IO"S EI"IS#$ mr.
Aramod mahaDan.
Various indian & multinational companies are looting indian
e3che>uer to the tune of thousands of crores of rupees 2 through
lo,,ying . ,ri,ing. #ake the recent case of allotment of 8* spectrum.
In india2 indirect democracy is the form of go+ernance. In this
form2 people=s representati+es are ,ound to raise the >uestions 2
issues concerning their constituents on their ,ehalf 2 on the floor of
the house. 7owe+er the sad part in india e+en after ;: years of
democracy 2 is the lo,,ying is at it=s peak. #he lo,,ying is a
gentleman=s white collared crook=s way of forming fa+our seeker=s
group 2 creating a corpus to pay lumpsum ,ri,e & influencing decision
making.
#he people=s representati+es are ,ound to represent their people
first 2 then their party & party think tanks. India has come to this
sorry state of affairs 2 widespread corruption 2 huge ,lack economy &
rampant po+erty2 all due to inefficient legislations & enforcements.
#hese think tanks & I%S lo,,y2 consider themsel+es as most super
,rains on earth & gi+es out suggestions . the present state of affairs
is a ,arometer of their ,rilliance. #hese think tanks & I%S lo,,y are
the hand maidens of lo,,yists . ,ri,ers.

#7$%# #O I"!I%=S S'&$I#H )H 'O$AO$%# '$IEI"%LS
- %n appeal to honoura,le prime minister of india & honoura,le chief
minister of karnataka
In india 2 since ages certain section of people I dalits 2 tri,als are
,eing oppressed in the name of caste ,y forward caste people. #he name
sake independence has not changed the li+es of dalits & tri,als. #he
upper caste people were in control of go+ernment & economic sector
,efore independence as well as after independence too. #he upper caste
people are now EAs 2 EL%s & are running ,usinesses . they ha+e framed
rules 2 laws to suit their ends. #hey are getting ,ank loans 2
su,sidies 2 ta3 cuts 2 etc 2 ,y greasing the palms of those in power I
their own caste men. #he reser+ation policy is Dust a +ote winning
gimmick of forward caste politicians 2 it is neo di+ide & rule policy.
Only few dalits with money & contacts ha+e ,enefitted 2 ,y the
reser+ation policy of go+ernment. EaDority of them are still
sufferring from utter po+erty & social oppression.
"ow2 due to rapid industrialisation & glo,alisation a new economic
di+ide has taken place I rich & poor 2 ha+es & ha+e nots. "ow2
economically poor are also ,eing oppressed along with dalits. #he
forward caste people in go+ernment ha+e framed laws to suit their
ends 2 they ha+e pro+ided concessional priority loans 2 ta3 cuts 2
su,sidies 2 etc from the go+ernment to corporate sector . #he
corporate sector has demanded & got monetary ,enefits 2 infrastructure
facilities from the go+ernment . howe+er the same corporates 2 E"'s
are +iolating statuotary laws & are a+erse to social welfare measures
of the go+ernment . they are a+erse to pro+ide Do,s to dalits 2
tri,als & poor 2 why C these corporates are ,ri,ing the la,our 2 ta3
department & other go+ernment officials . as a result the go+ernment
is loosing ta3 re+enues to the tune of thousands of crores e+ery
year 2 the go+ernment doesn=t ha+e money to pro+ide social welfare
measures to common people. #he li+es of common people are under
threat. "ow2
the num,er of common people dying due to star+ation 2 lack of health
care is more than in a war field. #he threat to unity & integrity of
india is more from the corporate sector than pakistan or china.
"ow2 the go+ernment of india & other state go+ernments are literally
under corporate control. we ha+e ,rought to the notice of go+ernment
cases of statuotary law +iolations ,y +arious corporate entities 2
till date no action has ,een taken. Bhy C here,y 2 we once again
offers it=s conditional ser+ices to the go+ernment of india &
karnataka in apprehending corporate criminals 2 corrupt ta3 2 la,our 2
pollution control ,oard offricials. %re you ready sir CCCC

)lack money in foreign ,anks amounts to plunder of nation- Supreme 'ourt

)lack money stashed away in foreign ,anks is not Dust a case of ta3 e+asion2 it is
Pmind- ,oggling crimeQ amounting to Ptheft and plunder of national wealthNN2 the
Supreme 'ourt said on Bednesday.
In a frank message to the &nion go+ernment2 the court wanted it to realise the
gra+ity of the issue. PBe are talking a,out mind-,oggling crime. Be are not on
the niceties of +arious treaties2NN a ,ench of Dustices ) Sudershan $eddy and SS
"iDDar told solicitor-general *opal Su,ramanium.
arlier2 the go+ernment had contended that money in foreign ,anks was a case of
ta3 e+asion and it cannot make pu,lic the names of Indian account holders.
P#he authorities ha+e to go on the ,asis of mutual agreement with +arious
countries where the money is stashed2NN Su,ramium said.
P#his is the pro,lem worrying us. It is not only a,out ta3 e+asion and has
something more2NN the ,ench said after it was pointed out that the source of the
money could ,e narcotics2 terror fund or arms dealing.
#he court was hearing a petition filed ,y noted criminal lawyer $am Jethmalani
and some retired ,ureaucrats and police officers.


*tandard +hartered tries to co!er u" its mess, "ast, but *-./ is in a slumber








*tandard +hartered .an01s draft red herring "ros"ectus to raise 23%% million-24%%
million through the first-e!er issue of /ndian 5e"ositor, Recei"ts (/5Rs) has com"letel,
blan0ed out at least &3 litigations "ending against it in connection with the securities
scam of &66' and a foreign e$change scandal in!ol!ing the misuse of its !ostro
account, also in the &66%s

7he "ros"ectus has re"ortedl, been cleared b, the *ecurities and -$change .oard of
/ndia (*-./), which is full, aware that most litigations "ertaining to the &66' scam are
still dragging their wa, through the /ndian 8udicial s,stem /t is shoc0ing that the .an0
has attem"ted to a!oid disclosure, gi!en that the .an09s dee" in!ol!ement in the scam
is widel, 0nown in /ndia and the /5Rs are being sold to /ndian in!estors :hat is worse,
when as0ed about the failure to disclose litigation "ending against the .an0, *-./ has
chosen to not to res"ond to the emails mar0ed to the entire to" brass of the .an0

;n chec0ing with the .an0, Ari8it 5e, head of e$ternal communications, has this to sa,:
<:ith reference to ,our email to =eera8 *waroo", our res"onse is as below: 7he /5Rs
re"resent the shares of *tandard +hartered >?+, @K , the ultimate "arent com"an, of
*tandard +hartered .an0, /ndia /n accordance with the disclosure reAuirements under
*-./ Regulations, /5R Rules, other a""licable laws and international "ractice, *+ >?+
has made a""ro"riate disclosures of all material issues in the draft offer document filed
with *-./ :e ha!e nothing further to add be,ond what is disclosed in the 5RH>B

Howe!er, a sim"le reading of "age C&C of its draft red herring "ros"ectus suggests
otherwise /t sa,s: <As of the date of this 5raft Red Herring >ros"ectus, neither the
+om"an,, any mem,er of the *roup2 any !irector2 or any material associate of the
'ompany (em"hasis ours) are in!ol!ed in an, material go!ernmental, legal or
arbitration "roceedings or litigation and the +om"an, is not aware of an, "ending or
threatened material go!ernmental, legal or arbitration "roceedings or litigation relating
to the 'ompany2 any mem,er of the *roup2 any !irector or any material
associate which, in either case, ma, ha!e a significant effect on the "erformance of the
Drou", and there are no liabilities or defaults (including arrears and "otential liabilities)
in relation to such material "roceedings or litigation which would be reAuired to be
disclosed under the *-./ RegulationsB

Eoreo!er, the cases filed b, the -nforcement 5irectorate and in the *"ecial +ourt do
not all "ertain to the /ndian o"erations (the .an09s /ndian o"eration itself is significantl,
large and im"ortant, es"eciall, after the im"act of the global financial crisis) /n fact,
man, of them s"ecificall, name a former chairman of the .an0, Rodne, Dal"in

Among the cases that we ha!e information about include some in the *"ecial +ourt set
u" to tr, the securities scam related offences (EA F(3G'%%F H *+. !Gs the +ustodian I
othersJ *uit C3 of &663 *+. !Gs Andhra .an0J *uit =o ( of &66C *+. !Gs Andhra .an0
and *uit =o F' of *+. !Gs Andhra .an0) 7hen there are at least half a doKen cases
filed b, the -nforcement 5irectorate, man, of them in '%%' :e ha!e sent a list of all
these cases to *-./, but ha!e no res"onse from the regulator

Are these cases serious enough to ma0e a difference to the .an09s global o"erations
and "erformanceL >robabl, not Also, man, /ndian com"anies ha!e successfull, raised
funds, e!en after disclosing that the main "romoters were accused of murder or worse
7he issue is the .an09s lac0 of trans"arenc,, while selling a financial instrument to
/ndian in!estors

:hat is worse, the failure to insist on this disclosure reflects e!en more badl, on the
mar0et watchdog /n its !er, first /5R clearance, *-./ has shown that it is "robabl,
o!erawed with the international ban09s "lans to raise funds in /ndia or its fat, M%&-"age
offer document -ither wa,, it is not insisting on the same trans"arenc, and disclosure
standards that it e$"ects from /ndian com"anies, which should be a matter of serious
concern, gi!en that global ban0s ha!e not co!ered themsel!es in glor, in the lead-u" to
the financial crisis of '%%M N Su+-eta #alal

7oo man, loo"holes
%nand %dhikari dition- %pril /<2 45/8


Hidden-camera !ideos of the countr,9s three leading "ri!ate ban0s9 officials allegedl,
ad!ising customers on mone,-laundering recentl, 0ic0ed u" a storm Heads ha!e
started to roll at the 8unior le!els in these ,anks - I'I'I2 7!F' and %3is .ut "unishing
wrongdoers is unli0el, to stem the irregularities A commenter on +obra"ostcom, the
5elhi-based website which conducted the sting, hit the nail on the head He said the
"roblem was not 8ust these three ban0s - it was that the entire s,stem was riddled with
loo"holes "/t9s a good o""ortunit, for the regulators to "lug these loo"holes," he wrote
He "ointed to the multi"licit, of acce"table identit, documents - for instance, the >A=
("ermanent account number) card, "ass"ort and Aadhaar uniAue identification (@/5)
number - and the fact that none of them are interlin0ed "/t9s a real "it, for a countr,
which "roduces some of the best /7 talents in the world," he added +ontrast /ndia with
the @nited *tates, where social securit, numbers are in "lace since &6F3
7here are numerous "roblems at multi"le
le!els - the industr, regulator, the
go!ernment, and the ban0s themsel!es At
the le!el of the ban0, the core issue is the
a""roach to ban0ing, as ban0s are caught u"
in an aggressi!e sales culture 7he ones
named in +obra"ost9s allegations ha!e said
the, do business ethicall, Howe!er, all three
declined to s"ea0 to .usiness 7oda, until
the, had in!estigated the matter full,
At the le!el of the regulator - the $eser+e
)ank of India (R./) - there is an urgent need
to im"ro!e the freAuenc, and Aualit, of
ins"ection Eore im"ortantl,, there is a need
to o!erhaul Know Oour +ustomer (KO+)
norms for financial intermediaries such as
ban0s, non-ban0ing financial com"anies
(=.P+s), insurers and mutual funds
And at the go!ernment le!el, there is a need
to s"eed u" Aadhaar - the national uniAue
identification (@/5) number "ro8ect - as it
would eliminate the multi"licit, of documents
7he central ban09s KO+ guidelines reAuire
ban0s to collect three documents -
"hotogra"hs, identit, "roof, and address
"roof - from customers before the, can o"en
an account or get a loc0er /f a customer has
no @/5 number, the ban0 has no o"tion but to
acce"t documents such as !oter /5,
electricit, bill, "ass"ort, or >A= card
"7he root cause of man, of the "roblems
toda, is the multi"licit, of enforcement
agencies, arra, of regulations and !ariet, of
documents for the identification of a single
"erson," sa,s >a!an Kumar Qi8a,, Eanaging
5irector of +or"orate >rofessional Drou", a
cor"orate ad!isor, firm
7he 'o,rapost +ideos show
,ankers as0ing for easil, a!ailable KO+ documents, and, in some cases, e!en ad!ising
customers not to submit a >A= card so the, can sta, off the ta$ radar .an0ers sa,
some customers get awa, with submitting a lease agreement and rent recei"ts as
address "roof "7hese are the most sus"ect cases, where the ban0 should do a ground
chec0 or "eriodicall, re-chec0 whether the customer still has the same residence or
8ob," sa,s the chairman of a "ublic sector ban0
*ome ban0s acce"t a com"an, /5 card as "roof of identit,, and a letter from an
em"lo,er as residence "roof 7hat is in line with R./ guidelines, but ban0s are also
reAuired to u"date the customer data from time to time .ut man, ban0ers sa, these
chec0s get short shrift, as the ban0 is focused on attracting new customers
"7he "roblem is not with the KO+, but its im"lementation," sa,s E5 Eall,a, who
recentl, retired as +hairman of the state-owned .an0 of .aroda He ma, be right, as
the genuineness of e!en crucial go!ernment-issued documents is not alwa,s abo!e
Auest ion
According to the +om"troller and Auditor Deneral (+AD), there were close to 6( million
>A= cards as of Earch '%&%, but onl, FC million ta$ returns were filed
7he >A= card is one of the most abused documents 7he +AD noted in '%&%G&& that
big ta$ e!aders s"read out their mone, b, o"ening multi"le ban0 accounts with fa0e
>A= cards 7ac0ling >A= card fraud is not enough, though 7he /ncome 7a$ Act allows
those who claim not to ha!e a >A= card to fill out Porm (% and sa, the, ha!e no
ta$able income, or Porm (& to sa, their income is from agriculture A +obra"ost !ideo
shows a ban0er allegedl, ad!ising an underco!er re-"orter to fill out Porm (% to a!oid
detection b, ta$ authorities
*o 8ust b, filing Porm (% and without submitting a >A= card, a ta$ e!ader can de"osit
cash of o!er Rs 3%,%%% in a ban0 or "ost office, no Auestions as0ed According to
ban0ing industr, sources, the R./ and the finance ministr, are in!estigating cases in
which ban0s ha!e not re"orted transactions bac0ed b, Porm (% or (& to
the go+ernment=s Financial Intelligence &nit (P/@)
Pinance Einister > +hidambaram
-!entuall,, Aadhaar will resol!e the KO+ issue .ut until
that ha""ens, some argue, it is im"ossible to reAuire 8ust
one or a few documents as acce"table "roof of identit, and
residence "7here is the issue of financial inclusion, or
"eo"le ha!ing different sets of documents," sa,s a ban0er
from one of three ban0s named b, +obra"ost He adds that
some "eo"le genuinel, do not ha!e ta$able income, man,
do not ha!e a "ass"ort, and for some, the onl, address
"roof is an em"lo,er9s letter
".an0ing is a serious business where ser!ice,
com"liance and safet, are core elements," sa,s AK
Khandelwal, former .an0 of .aroda chairman and
author of the boo0 5are to ?ead .ut "ri!ate ban0s
ha!e a strong culture of cross-selling their
subsidiaries9 "roducts, and increasing the number of
sa!ings and cur rent account de"osits
"=urturing an ethics-based cor"orate culture, with
"ro!isions to claw bac0 "erformance-based
incenti!es can hel" correct the current a""roach of
mobilising fresh business b, an, means," adds
Khandelwal
7he +obra"ost e$"ose shows ban0ers allegedl,
mar0eting insurance "roducts to con!ert blac0
mone, into white /nsurance "roducts are "rofitable,
because the ban0 earns a high first-,ear
commission on the "remium 7he ban0 manager
could benefit, too: man, ban0s and insurers offer
rewards for high sales, such as foreign 8un0ets
/nsurance "roducts are eas, to sell 7he ban09s KO+
reAuirements are sufficient "roof for in!esting an,
amount in an insurance scheme A >A= card is not
necessar,, e!en though some single-"remium "olic,
amounts are as high as Rs F% la0h Ean, ban0s sell
"olicies that mature after se!en ,ears At that "oint,
nobod, can Auestion the source of the mone,,
because income-ta$ laws do not reAuire ban0s to
0ee" records for more than se!en ,ears
R./ Do!ernor 5 *ubbarao
+obra"ost has also alleged that the three ban0s ha!e been
laundering mone, Eone,-laundering means the transfer of mone,
from illegal sources - drugs and arms traffic0ing, terrorism,
e$tortion and theft - into the financial s,stem through fictitious ban0
accounts and hawala transactions +obra"ost alleges that the
ban0s suggested o"ening accounts in the name of the a""licant9s
s"ouse, cousin, or friend, which is not mone,-laundering in the
strict sense
., law, ban0 em"lo,ees ha!e the authorit, to as0 a customer for
details of transactions that are not consistent with the customer9s "rofile 7he onus is on
the ban0 to ensure that the account is not being used to launder mone, /nsurance
com"anies, too, are reAuired to re"ort cash transactions of o!er Rs &% la0h a month to
the P/@
Pollowing +obra"ost9s allegations, the R./ and the /nsurance Regulator, 5e!elo"ment
Authorit, are in!estigating KO+ !iolations and the bac0ground of customers who ha!e
"ut large sums into single"remium insurance "lans /+/+/ .an09s life insurance arm has
launched a "robe, too
*ome in the industr, sa, the P/@ is see0ing details of "olic, holders with high-!alue
single-"remium "olicies 7he R./, too, is in!estigating high-!alue transactions "/f there
is a series of cash transactions !alued at Rs &% la0h or more in a month, the, need to
be re"orted under AE?," sa,s a "ublic-sector ban0er on condition of anon,mit, AE?
refers to anti-mone, laundering rules
.an0s are reAuired to re"ort demand drafts, mail transfers and tra!ellers9 cheAues worth
Rs 3%,%%% and more to the R./ A source in the central ban0 sa,s: "7he in!estigation
will also loo0 at the e$tent of com"lacenc, shown b, the to" management of these
ban0s"
*ome ban0ers argue that it would be unfair to blame the to" management of the three
"ri!ate ban0s that +obra"ost has named - the countr,9s largest in terms of mar0et
ca"italisation /+/+/ and H5P+ ha!e nearl, F,%%% branches each, and A$is .an0 has
close to ',%%% 7he +obra"ost in!estigation co!ered some 3% branches All three ban0s
ha!e com"rehensi!e codes of conduct for em"lo,ees Por e$am"le, /+/+/ .an0, with a
balance sheet of Rs 3 la0h crore, has a detailed manual outlining due diligence for
acce"ting a customer
A da, after +obra"ost "ublished its in!estigation, /+/+/ and H5P+ ban0s a""ointed
audit firm 5eloitte 7ouche 7ohmatsu to carr, out an inde"endent forensic enAuir, in
addition to their own internal in!estigations into +obra"ost9s allegations 7he stoc0
mar0et has reacted, too: the ban0s9 stoc0s ha!e fallen more than the .*- *ense$
"7he R./ ma, also "ut the bra0es on new branch licences to some ban0s," sa,s
Kash,a" Rha!eri, anal,st at -m0a, Dlobal Pinancial *er!ices, in a recent re"ort An
anal,st who manages the mone, of foreign institutional in!estors sa,s the "robe could
e$"and to other ban0s A Doldman *achs re"ort notes: "7hese de!elo"ments, if "ro!en
true, could "otentiall, lead to slower growth across "ri!ate ban0s9 de"osits and
business"
7he R./9s deadline for a scrutin, of the head office and branches of the three "ri!ate
ban0s is Earch F& 7he central ban0 is also stud,ing whether the ban0s9 gold coins and
wealth management "roducts could be "otential wa,s to stash blac0 mone, R./
5e"ut, Do!ernor K+ +ha0rabart, has down"la,ed the e$"ose, sa,ing: "/f we find
there is a need to further tighten an, guidelines, we will do that"
*ome in the industr, sa, that Pinance Einister +hidambaram9s estimate that C(,M%%
"eo"le ha!e ta$able income of o!er Rs & crore is baffling, considering the growth of
ban0s9 wealth management ser!ices and the "ortfolio management ser!ices of mutual
funds and bro0erages
/n addition to being the go!ernment9s debt manager, the R./ manages the countr,9s
monetar, "olic,, and su"er!ise and regulate ban0s "7here is a strong case of hi!ing off
the ban0ing su"er!ision from R./," suggests a ban0er
7he number of ban0 branches in the countr, has grown to M%,%%% 7he R./ has some
'%,%%% em"lo,ees, of which one-third are maintenance and technical staff *ome
ban0ers Auestion, howe!er, whether adding la,ers of "eo"le will im"ro!e the situation
Pormer R./ go!ernor .imal Ralan sa,s: ":e should learn from the current e$"erience
and see how we can im"ro!e our ethical go!ernance s,stem in im"lementing the
ban0ing guidelines"
7here is also the issue of blac0 mone, - estimated at Rs &%-&3 la0h crore - being
generated in the first "lace /t is common 0nowledge that much of it is stashed in other
countries 7he +obra"ost sting has highlighted that ban0s, which are highl, regulated,
seem to be doing little to bring ta$ e!aders to boo0 at home /t is an,one9s guess what
goes on in more loosel, regulated financial intermediaries such as co-o"erati!e ban0s,
=.P+s and credit societies



Edited. /ri&ted . /u'lis-ed o0&ed '1 NA$ARA2A.M.R. ) 3 4I$5
2 No 671.%8#9! "IRS, S,A$E .
!::
;A,ER ;!RS . 4A<MIAN,ANA$AR . %EBBA4
.M=S!RE > 560016 ARNA,AA
IN#IA? +ell : 91 9@41A20@1@ . 91 A960@1A202


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