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Monday, September 23, 2019

A Feast of Vultures - Josy Joseph


The hidden Business of Democracy in India By Josy Joseph ; I simply loved this book.

Briefer: India a complex web, you can do practically anything. Courts are crowded and expensive, police corrupt and cruel, politicians busy to grab power, media far too urban. When press dare to publish something, they get defamation notice. India is a rich county of too many poor people; around 70% of its population live in rural areas. Billionaire blithely build home on razed orphanage. For every reported scandal, there is a bigger, far worse story behind the scenes. Everything is on sale, all you need are the resources to engage the right facilitators.

Section 1 – The Middlemen – Most flourishing Industry. Can get birth certificates, organize government subsidy, manipulate contracts or throw a government out. They are Individuals, trusts or Tax Havens.

1. Mr Fix-it down the street – represents political leaders and other influential people at the bottom rung of the middlemen’s network. They are intermediaries between ordinary citizens and inefficient/corrupt governments. They assist the poor by getting things done, so they can focus on their day job, and not go around, pay bribe and waste time. Intermediaries find rhythm between government and ordinary people and make money.

2. The Mighty Typist – For example Mathai, Dawan and George, for Nehru, Indira and Rajiv; they are the closest aid, and know everything in and out happening in the mighty world. After BJP lost power and Ajay Singh his official position with Mahajan, the young confidant’s life took another turn. In 2004, he surprised the business world by taking over a defunct private airline with valid Air Operating Certificate and launched spicejet.

3. Arms and the Middleman – Several economies officially permit lobbying with the government. Their task is not to pay bribes or manipulate. But Indian middlemen do all this and more, though India has not formally recognized lobbying nor does it allow agents in government contracts. Every aspect of economy where the government has a role is trapped in high level corruption. In arms sales Choudhrie’s – brothers Sudhir, Amrit and Rajiv - footprints can be seen in China, Indonesia, Israel, several European nations and African countries. They are admired, loather for their ability to swing deals and for scuttling those of competitors. The Nanda family captures the all on sale ethics of Indian Society starting from Admiral Sardarilal Nanda, followed by Suresh and Sanjeev Nanda. Their business in India have significant investments from Mauritius, BVI’s. HDW scandal, VVIP helicopter scandal, latest being Adani group promoted by Gautam Adani allegedly taking out Rs. 5,000 crores to tax havens, using inflated bills for the import of power equipment from South Korea and China. Inspite of the constitution of special investigation team (SIT) in 2014 there has been no credible evidence of bringing back black money.

4. The Insiders and the Outlaws appear and disappear depending on the party in power. The only case in which the agency was able to establish at least a part of the cash trail was in the Bofors scandal, but there, there were no convictions. In fact, flip-flops by the CBI were very stark through the entire investigation, drawing allegations of political manipulations. In February 2007, when Ottavio Quattrocchi, the key accused in the scandal, was arrested in Argentina, the CBI put up a half-hearted effort and India failed to extradite him. In fact Delhi Trial court in march 2011 added that while the bribe in scandal was only Rs. 64 crore, CBI had spend Rs. 250 crore on the case, Quattrocchi died of heart attach on 13 July 2013 in Milan. In recent years two son in laws have been under public scrutiny. Ranjan Bhattacharya and Robert Vadra. Vadra purchased agricultural lands and got permit to convert them for commercial purpose for DLF.

Section 2 – The very Private Private Sector – India is the land of endless opportunities.
5. Battle for the skies – On 13 Nov 1995 Thakiyuddin Abdul Wahid, MD of East West Airlines was shot. Mumbai police and Indian intelligence agency suspected that the airline was involved financially with Dawood Ibrahim, his name was the top target of Choota Rajan, Dawood’s rival don. Jet air led by Naresh Goyal was also a suspect. Taki one of the 11 children of Mussaliar from Odayam with his elder brother Nasiruddin started business in 1980 East West Travel and Trade Links Private Limited. In 1989, under a new Open Sky Policy, the government began issuing air taxi licences for capacity building of Indian aviation sector. Countries first private flight operated on 28th Feb 1992. Jet airways took to sky in May 1993. By mid-1995 East West’s expansion plans were thwarted, insider information was gather by hook or crook, competition was heating up, rivals were poaching its staff.

6. Anatomy of a Murder – Ruthless business tactics, politically influential businessmen, politicians who are on the take, ambitious upstarts and shady players were highlights of the post economic liberalization era. June 1997; last flight of East West touched down in Mumbai. Fortunes of Jet Airways started to soar. There was crisis at all levels of the Indian democracy – the oligarchy that is India’s political class, the power of money to swing decisions, the meek regulatory systems that are bent and broken regularly by business interests, the elite’s blatant disrespect for laws and norms, and eventually the disappearance of even a semblance of morality from public life. It would be a miracle if democracy survives and flourishes. If it dies, it would be the final outcome of a collective conspiracy.

7. The Fly by might Operator – With the suspected underwold links, hijacking on IC-814 from Katmandu to Kandahar in Afghanistan and the bizarre incident of arms drops in Purulia in West Bengal, one of the key question was which ministry should provide security clearance to air operators – Home affairs or civil aviation. Home affairs – it was decided, who put an end to intelligence inquiries into Jet Airways dubious funds and its promoter’s links to underworld. Goyal had friends in all the right places. They were denied permission to fly to US stating links with Al Qaede company. In January 2006 they took over Air Sahara. By 2009-10 many of the India’s cattle shed airports were overhauled and private businessmen entered the aviation business, reaping rich rewards.

J.R. D. Tata set up the country’s first airline; In 1952 civil aviation was nationalized but JRD remained its chairman of AI until 1978. In 1968 it was top airlines, now it is the world’s third most dangerous airlines. In 2004-14 some questionable decisions were made contributing to the destruction of AI. Ratan Tata when stepping down as the chairman in Dec. 2012 mentioned about ‘destructive competition’ here. Overseas, people go bankrupt or companies go bankrupt. Here they never do. They continue to be sick and still operate. Then they are operating to kill you. Finally Tata’s make reentry – as a minority partner in Air Asia in 2014 as well as in a joint venture with Singapore airlines they announce the launch of their airline named Vistara.

Section 3 – The Big League – Ultimate beneficiaries of the Indian democracy, who sit so high above us, they are practically out of sight.

8. Masters of the Game – Business magnates are increasingly occupying seats in parliament and state legislatures. They seek direct access to the highest class of power. Vijay Mallaya, Parimal Nathwani for Reliance, Anurag Thakur son of BJP senior leader, interesting how he becomes president of BCCI, Badal family of Punjab, Ravi Shankar Prasad to name a few. Malllay in ‘Power of a Billion’ mention, ‘A Nation that prides itself in modern self-sufficiency; is it real for a few-and a dream for all?

9. League of Extraordinary Gentlemen Nation’s biggest flags are now hoisted after Jindal do the poor in Raigarh know? Agrawal’s and the Vedanta group flourish.


10. A house for Mr. Ambani – With Antilia do the Ambanis hope to sever their links to the poverty and squalor of their homeland and raise a new civilization? Ambani brothers were at the Vanguard of the industrialists and other luminaries who helped Narendra Modi sanitize his image of the stigma of the Gujarat pogrom of 2002. When DOT opened its auction site for allotting 4G spectrum little know Internet service provider, Infotel Broadband Services Pvt. Ltd. Promoted by Mahendra Nahata, who agreed to pay 71,000 times his companies turnover a whopping Rs. 12,847.77 crores for a national licence. Within hours of the close of bidding Infotel was taken over by Mukesh Ambaini’s RIL group. CBI started probing Adarsh Apartment scam, charge sheet on 2G spectrum scandal was filed, Adani campaign was picking up pace. As seen from election spends, Indian political parties exist more in the black market than in the open .

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