Banking Scam

Enough time had been given to Mr. Kalamadi and his associates to clean their houses before CBI raids. Enough time had been given to Mr. Raja and his associates as well to do work as per his whims and fancies violating all existing norms for allocation of spectrum before he tendered resignation and before CBI raided his house. CBI raids are nothing but willfully managed dramatic act to demonstrate the people of India that the government is taking action against the corrupt officers. Absolutely non -sensical and dramatic acts are being played by cleaver politicians of ruling party to salvage public image. eventually none will be punished.

In fact none is trustworthy in India. Even judiciary is facing serious charges of corruption. CBI is already blamed to be a puppet in the hands or ruling government.

However it is only Supreme Court and state level High Courts on which people of India are constrained to rely upon to some extent.

Both of Mr. Kalamadi and Mr. Raja have already caused huge loss to the government. Kalamadi has paid hundred times more than what the government proposed in the year 2001 and Raja has realized at rate what was prevailing in the year 2001 in contrast to many times higher rate which the government could have received through open tender. It is very difficult to establish the charges. It is very difficult to assess and establish the quantum of loss which has been caused to India because none of the investigating agencies can tell or imagine what rate government could have got through tender in the year 2010 or in 2009.Similarly it is not easy for CBI to prove that Kalamadi paid extra ordinarily higher rate than the prevailing rate for a particular type and particular quality of goods and services he bought for Common Wealth Games and in return he earned wealth for himself or for his associates.

It is an universal truth that in all contractual work or in government supply work of value of Rs.100 in government offices and government departments ,actual work done or actual value of supplied goods and services is hardly Rs. 20 to Rs.50. Everyone knows that 20% of the allocated fund is actually consumed and used for work and 80% of the fund is consumed in distributing bribes and commissions to various individuals, political workers, top leaders, ministers, local MLAs and MPs, brokers, middlemen, local musclemen called as extortionists, Naxals and mediating or executing agencies.

If one looks into lending made by Public Sector banks and assess the quality of assets of the bank honestly he will find that there are at least ten lac crores worth assets as Non Performing Assets though declared NPA of PSU banks as on March 2010 was only one lac twenty thousand crores rupees. Bankers are not punished because all top executives, RBI officials, Ministers are guilty for making bad lending. In fact only those officers become executive, DGM,GM, ED and CMD in a bank only if he is expert in bad lending , expert in keeping higher authorities happy and maintain a strong lobby of God fathers not only to rise in career but also to get protection in time of crisis or when he is exposed or trapped in CBI net. As such scam of 2G spectrum under investigation by CBI is very small compared to continuing scam in banks. If a CMD or ED of a bank makes a phone call to GM to ensure lending of hundred crores to relative of the Finance Minister, entire processing of sanction of desired lending will take place a shortest period possible. This is called lobby banking or corporate lobby policy. When Ministers or RBI shuts their eyes and ears, none is capable to stop corrupt practices.

Everyone in our country knows that development funds sent by state or central government to district or block level offices are not fully distributed among real beneficiaries.

All are birds of the same feather. Then who will punish whom is a million dollar question.

Root cause of all corrupt practices is whimsical transfer, arbitrary promotions of junior staff by top rank officials to ensure a team of yes-men and flatterers around him so that none can raise the voice against his misdeeds and none can be whistle blower because everyone gets their due share.

Scam of value of hundreds and thousands of crore rupees cannot take place without the support of hundreds and thousands of persons in the system. This is why more and more people will try their best to shut the mouth of CBI officials and court judges. Many more middlemen and brokers will play their role and earn their share in ill earned money. Corruption cannot therefore be reduced at least in the frame work of democracy or by applying soft laws or by delayed action or by inefficient courts.