9
NIP A MANIPULATION IN THE BUD
On 14 September 2004 Mr. Prithviraj Chavan, Minister of State in Prime Minister’s Office, gave the inaugural address at a 3- day conference on “Global Banking Paradigm Shift” organized by the Federation of Indian Chambers and Industry at Bangalore. Managing Directors of nationalized banks and many industrialists attended the conference. The inaugural address was reserved for the Prime Minister of India, or the Finance Minister. They were conspicuous by their absence.
Mr. Chavan said that the centre would unveil new policy guidelines for encouraging mergers and acquisitions in the Indian banking sector. He informed the people that the government would not force mergers and acquisitions (M&A), but would definitely encourage M&A. He said that the current banking scenario required smaller number of very large banks rather than large number of small banks. For that, he wanted M&A activities on a large scale.
Further, he said that the Public Sector Banks would have to raise capital in the financial market and the current ownership on the public sector banks would have to be relaxed. He said that the required relaxation would be done without altering the public sector character, both in management and in ownership.
Mr. Purwar, Chairman, State Bank of India, said that the theme of the time was consolidation, competition and stability with growth - through mergers and acquisitions. He wanted this to compete for a piece of the pie in the international market. For this, he said that the banks should have size advantage of most foreign banks. He predicted that sooner or later the growing institutions would reach saturation point in the domestic market and there would be little choice but to move overseas.
The forces that worked for the amalgamation of the Public Sector Banks could be discerned.
The present writer alone said that the industrialists wanted to remove the entire money from the banks through one counter, and wanted the Government to abandon the move.
The prediction of this writer proved correct when the State Bank of India (SBI) gave Re.15,815 crore to the Reliance Industries Limited (RIL) between April and July 2010. Had all the banks been merged the RIL would have removed Re.158,150 crore through one counter.
In this connection, it must be stated that the report about the above Re.15,818 crore came to the knowledge of the people only in June 2011.
Dr. Manmohan Singh, Prime Minister of India, on 15 September 2004, said that he was unperturbed by “foul language” used against him but he was concerned about tackling issues like corruption and speeding up economic reforms.
The copy of the letter addressed to His Excellency the President of India on 10 September 2004 was sent to the Chief Vigilance Commissioner (CVC) and the Director, CBI on 15 September 2004. On the next day, Dr. Manmohan Singh convened a Cabinet meeting, and invited Mr.Jothi Basu for talks on the Common Minimum Programme (CMP).
The Economic Times on 17 September 2004 reported that the Bank of India (BoI) with an asset base of Re. 84,860crore and profit of Re.1,008 crore during 2003-2004 would be-very soon- merged with Union Bank of India (UBI) with an asset base of Re. 58,317 crore and profit of Re. 712 crore. There were reports that all formalities for the merger had been completed.
Mr. M.B. N. Rao, Managing Director of the public sector Indian Bank said that his bank would concentrate on acquisition of a domestic bank. This bank got a profit Re. 405 crore during 2003-2004. Two years ago, the government infused Re. 1300 crore to save it.
On 18 September 2004, inaugurating the third Conference of Chief Justices and Chief Ministers, Dr. Manmohan Singh urged the judiciary to do some soul searching.
Dr. Manmohan Singh - on 19 September 2004 - embarked on a nine-day foreign tour of Britain and the USA.
On 23 September 2004, “The New Indian Express” in its editorial described Dr. Manmohan Singh and Mr. Montek Singh Ahluwalia as the best face of the UPA Government. The paper said that they were upright and intellectually well regarded and they were attacked viciously.
The paper said this because some industrialists succeeded in removing public assets secretly.
On the same day, when Dr. Manmohan Singh was in New York, the letter No.40 was sent to Dr. Abdul Kalam, His Excellency the President of India.
The above letter clearly said that Dr. Manmohan Singh was echoing the views distilled by the industrialists. The letter follows.
From
V.SABARIMUTHU
Thattankonam
Vellicode
Mulagumoodu 629167
To
Dr. A.P.J. Abdul Kalam
His Excellency the President of India
Presidential Palace
New Delhi
Your Excellency
In the light of the 39 letters, kindly consider the question of:
1.Giving answers to four unanswered questions in letter No. 32 dated 31 May 2004.
In this connection, it must be stated that Mr. P. Chithambaram, Finance Minister, would not have occupied the present post, if the CBI had acted on the letter No.17 dated 8-1-2003 and informed the public about the fate of the “cash rich” enterprises. In the absence of a reasonable reply, people would consider this as asphyxiation of the Constitution.
2. Restoring the Constitution to its pre-eminent position.
The degeneracy of the Supreme Court was marked after the retirement of Chief Justice Anand, who is now functioning as Chairman, NHRC. The NHRC could now take effective steps to annul the BALCO judgment. Some “False and wicked” doctrines also could be invalidated. Now, Justice Ms Ruma Pal and Justice V. Reddy have delivered a judgment in favour of the ITC. The judgment might be a correct one. However, did the authorities impose a fine of more than Re. 800 crore without any real cause? Further, these learned judges were in the Bench that delivered the BALCO judgment. Therefore, the Chief Justice should not have given this case to them as it involves a huge amount. Apparently, the Chief Justice has acted in bad faith in constituting the bench.
3. Abolishing bulk buying or delegating buying and selling to the states
When everything is for sale, two or three Union Ministers and a few officials would also like to have one or two PSUs for themselves. However, this needs money. The easiest way to earn money would be to buy something on behalf of a PSU for huge commission. Thus, when this writer took the Re. 2200 crore deal by the BSNL, the Finance Director had to quit the BSNL. Whatever happened, the CBI, CVC and the NHRC simply failed to check the manipulations of the Union Ministers. Therefore, all acts of buying other than those related to defense could be delegated to the states.
4.Realizing 0 .1% Transaction Tax.
The Government could impose 0.1 % transaction tax on all payments and even all withdrawals. It will prevent many starvation deaths and ameliorate the suffering of millions of people. Not even 24 hours shall be wasted to implement this suggestion. The theory that he who is not in office has no right to give suggestions for Nation -building may not be a correct one.
5. Preventing the merger and acquisition of big banks.
Notwithstanding 39 letters sent with the objective of splitting the banks, the new Government has mooted the idea of merging big banks. Thus, if the things proceed as planned, the Bank of India (BoI) would be merged with Union Bank of India (UBI) within two months. It is not the idea of Dr.Manmohan Singh, Mr. P. Chithambaram, Mrs. Sonia Gandhi, Congress Party, Coalition Parties, Left Parties, M.Ps or the people. It is the idea distilled by the industrialists. It was first disclosed by Mr. Ashok Soota, the President of the CII on 11 May 2002.They consider this as the model of all models because they could silently avail themselves of all monies from all over India through less than ten counters. They first wanted to bring the Cooperative banks under the sole control of the RBI. Mr. Agit Singh in the Union Cabinet opposed it. He paid the price by sacrificing his position in the Cabinet. However, Mr. Vajpayee, former Prime Minister, did not succumb to the pressure of the industrialists fully presumably due to the intense pressure from this writer. Now, apparently, Dr. Manmohan Singh himself wishes to misuse his official power. Who, how and when the “Superior Men” injected this idea into his mind are the important questions.
Dr. Manmohan Singh is not disclosing the truth regarding the Re. 845 crore deal by the BoI. If the same industrialist takes Re.85,000 crore from the merged banks and convert it into personal assets abroad, will anyone in India disclose it? The CBI, CVC, NHRC, DD and the print media would not open their mouth. Even the President of India would not murmur! Therefore, all right thinking people would think that Dr.Manmohan Singh is sucking the lifeblood of 1000 million people by projecting the idea of the industrialists as his own idea.
Hundred of small countries like Japan, Singapore, Hong Hong, Korea, Spain have world class banks. Therefore, two or three banks could be given to each state. They could have all India or Global presence.
6. Splitting the LIC into State level units.
It appears that the LIC has become bankrupt. The LIC-HFL is falling heavily on its own customers. The outstanding loan of A/C: 460006967” as per the letter of LIC-HFL Palayamkottai, Tirunelveli 627002, PH: 2574378, itself was Rs.190350.36 as on 1-8-2004. However, it has sent an advocate notice on 11-9-2004 stating that A/C 460006967 has an outstanding loan of Rs. 201763 as on 1-8-2004. LIC-HFL did this after verifying the account with the help of a hired underworld person.
The crucial point is that the electronic accounting system simply fails. The CBI, CVC and the NHRC would reject it as a computer or inadvertent clerical error. The CBI, CVC and NHRC would consider it as a customary incident involving Re.8,000 and would ignore it. The truth is that not less than Re. 80,000 crore would have gone out of the LIC in a similar way. Tomorrow an industrialist would remove Re.800,000 core in one day and buy an island in Great Britain. Day after tomorrow the amount would vanish from the computer. None, including the President of India, would dare to murmur! The media would proclaim the industrialist as the honest man of the world. What would the people do? It is imperative that the LIC must be split into separate State level units immediately. However, the will of the industrialist alone would prevail is another matter.
7. Restraining the financial institutions from investing in shares directly or indirectly.
It is a three-year-old demand. Dr. Manmohan Singh would say that it the convention for the Prime Ministers to manipulate the stock market daily. However, the Constitution does not condescend this. The experience gained during last five decades reinforces this view. Therefore, if any money had gone out of the banks and the LIC, the system must objectively examine whether the letter No.15 dated 16-11-2002 addressed to His Excellency the President of India is applicable to the present system itself or not.
8. Exposing the manipulations in rice exports.
There were reports that huge subsidies had been granted for exporting rice and that the rice meant for export had been circulated internally and thereby some industrialists got Re.9000 crore. None knows the truth in this matter.
9. Taking action for Human Rights violations.
When the human right issue pertaining to of Mr. Xylesh Kumar Yadav,IPS, was submitted, the NHRC rejected it by stating that it was sub-judice. The review petition was rejected vide Case No1311/22/1999-2000 dated 28-9-2000 under section 36(1) of the Act. On 26 May 2004, the NHRC again rejected the matter vide Case No.11/22/2004-2005/OC as only copies of the letters addressed to His Excellency the President of India were sent to it. As there are no new points, the NHRC is requested to take appropriate action and withdraw the case against this writer through competent authority.
10.Publishing these letters in all newspapers.
This is letter No. 40. The letters are written not out of the conditions chosen by this writer. Recently, Dr. Manmohan Singh requested his colleagues not to disclose any policy decision without his approval. Now, nothing that takes place in the higher levels reaches the common man. Envisaging such a situation Plato says that politics are an affair of the twilight; they concern the relations of men in the dimness of the cave. Dr. A.P.J. Abdul Kalam could examine whether such descriptions are applicable to his Government or not. The Greek believed that great impediment to action is not discussion, but the want of that knowledge which is gained by discussion preparatory to action. Therefore, these letters could be published in all newspapers. Any disqualification might go down as a conspiracy of the CBI, CVC, DD, print media and the NHRC. Further, the CBI, CVC and the NHRC could give answers to all unanswered questions and give concrete suggestions to curtail huge commission, rank corruption and giant manipulation to save 1000 million people.
Vellicode Yours faithfully,
23-9-2004
(V.SABARIMUTHU)
The media, including the DD, blacked out the impact of the above letter.
However, the Thina Malar, a Tamil daily reported that hectic consultations took place at Delhi. Thina Malar reported this on 26 September 2004 in its front page. The Tamil paper said that Mr. Pranab Mukergee, Defense Minister, had met the Congress President several times on 23 September 2004. The paper reported that he had convened the Cabinet meetings in the absence of the Prime Minister. The paper added that the Congress President had overlooked the seniority of Mr. Arjun Singh, Mr. Shivaraj Patel and Gulam Nabi Azad.
On 24 September 2004, as a reply to this writer, Mr. Ghulam Nabi Azad, Urban Development Minister, said that the Government would investigate scams that had allegedly taken place during the previous NDA regime. He said that the BJP was disrupting the Parliament because they did not want their corrupt deeds to be exposed.
On the same day, Mr. Jothi Basu, the leader of the CPM described Mr. Ahluwalia as a World Bank man. He said this while opposing the presence of foreign experts in the Planning Commission. However, Mr. S.Raja M.P. (CPI-M) said that the Communist Party was not sincere in its opposition to the privatization of Airports and in the FDI matter.
The Minister for Heavy Industry, Mr. Santosh Mohan Dev on 24 September 2004 said that the Government was attached to Maruthi and hence it would not offload its 18.24 percent equity in Maruti Udyog Limited.
Now, the talks about the merger of banks faded. The manipulation was nipped in the bud.
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