[Marxistindia] Corruption and scams under BJP

[news from the cpi(m)]

November 15, 2018
 
Press Release
 
Indian economy has hit the lowest point at the present point of time. Every
commitment made in the run up to the last election remains unredeemed. The
aggressive pursuit of neo-liberal policy has forced the institutionalization
of cronyism as the dominant feature of this government. This is the
fountainhead of high level corruption and scams. The government's protective
corporate partnership and sponsorship has led to the undermining of
regulators, independent agencies and, obviously, well laid down procedures
to ensure the principle of check and balance. Be it the Rafale deal, Pradhan
Mantri Fasal Bima Yojana, the telecom sector shenanigans and the great bank
robberies have brought these elements into play with crony capitalism as the
centerpiece. Therefore, as opposed to popular perception, the terrible state
of the Indian economy is not only the outcome of the mismanagement of the
economic and financial situation, but driven by cronyism.
 
How this is happening is clear from:
 
Rafale Scam
 
New facts are coming out on the irregularities of the government in
clinching the Rafale deal. The most sensational of these is the government's
own admission in the Supreme Court that there is no sovereign guarantee from
the French government but only a letter of comfort which is not legally
enforceable to ensure the delivery of this high value contract. On the
price, the government stated in March 2018, cost of the basic aircraft is
Rs. 670 crores per aircraft. But, in September 2016 government had pointed
out that it was Rs. 60,000 crores for 36 aircraft including all
additions/modifications making it Rs. 1,600 crores per plane. The Dassault
CEO has stated that price of 36 fly away aircraft is now equal to 18 fly
away ordered in MMRCA deal earlier. These figures obviously do not
corroborate. Dassault CEO in March, 2015 had stated that deal was nearly
complete with HAL in line with the requirements. It is now crystal clear
that the deal was announced by the Prime Minister in Paris in April, 2015
while the defense procurement council met and finalized in May 2015. This is
apart from the revenue already received by the inactive Reliance defense
account of Anil Ambani. The reality of the scam is well and truly
established. Nothing less than a Supreme Court monitored SIT probe can bring
out the truth and fix accountability. This is of paramount importance in the
interest of the nation and particularly, the security of the country. The
government is accountable for tax payer's money drawn from the public
exchequer.   
 
Demonetisation
 
Cash is back to where it was before 8th November, 2016.  The four declared
objectives were never designed to be achieved. Questions are now arising as
to who benefited? Unusually large conversions have taken place in the
Gujarat cooperative banks. Demonetisation has destroyed the cash driven
unorganized and informal sectors.  This has severely dented economic growth.
But most devastating impact has been on employment. It has now transpired
that, after Raghuram Rajan's exit, though the RBI Board had cleared the
demonetisation exercise, they had equally rejected the veracity of the
government's claims. The impact of the exercise also needs a closer
scrutiny. 
 
In view of these facts and developments, a JPC probe is necessary into this
entire exercise to establish the truth behind this disastrous step.
 
Undermining CBI independence
 
The ominous developments undermining the independent functioning of the  CBI
is now out in the open. The tampering with the functioning of the CBI
director is being probed by the CVC under the supervision of a retired
Supreme Court judge. There are media reports that nothing substantial has
been uncovered to establish any wrong doing on the part of the CBI director.
On the other hand, the facts are clear; after having failed to install R.K.
Asthana as the director, the government had to remain content with
positioning him as the special director as a result of judicial
intervention. Asthana's record to help the ruling party's cause in the past
is well recorded. It ranges from handling of the 2002 Godhra enquiry and
more recently, the Vyapam scam in Madhya Pradesh among many others. The
ongoing CBI enquiry into his role in the bribery scam which came in the way
of government's intention to place him at the helm of CBI and clearly
constitute ground for 'conflict of interest'. Therefore the description of a
feud in the CBI clearly suggests to use it as an excuse for stalling the
enquiry into Rafale deal and the issue of crony capitalism at its heart. The
refusal of the government to a JPC enquiry into the Rafale deal and even
rejecting the CAG studying the deal before 2023 is also an instance of
undermining the independence of yet another constitutional entity.
 
Undermining of the independence of RBI
 
What is happening in the RBI is also unprecedented. Invoking Section 7 of
the RBI Act is unprecedented and strikes at the very roots of independence
of the RBI in ensuring financial stability.  RBI's independent position on
demonetisation, handling of bad loans, the taking over 99% of the profits of
the RBI each year during the present government and now the attempt to force
Rs. 3.5 lakh crores from the RBI's reserves to contain fiscal deficit are
all issues undermining the Central Bank. The precipitation of the
disagreement appears to be triggered by the RBI's stand on refusing to
accede the demand of the government to look the other way at the SBI's
attempt to waive the corporate debt to the tune of Rs. 1 lakh crore on
account of the power projects in Gujarat. Protecting crony capitalist
interests has led to this unprecedented assault on the RBI's independence.
 
Electoral Bonds
 
The immediate gains that the Prime Minister and the BJP is looking at
through this complicit crony capitalism is corporate funding for electoral
benefit. The widening gap between the funding for BJP and all other
political parties are apparent. The amended electoral funding laws make
electoral bonds new tax heavens with the additional benefit of proximity
with the ruling dispensation to influence policy which would
disproportionately benefit them even if that is detrimental to the interest
of the country in general, and the poor and the working people in
particular. Therefore we demand the provision for unlimited and anonymous
corporate funding of political parties must be nullified forthwith, by
withdrawing the electoral bonds.    
 
 
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