Showing posts with label India. Show all posts
Showing posts with label India. Show all posts
Wednesday, April 13, 2011
Monday, May 4, 2009
Chinese billions in Sri Lanka fund battle against Tamil Tigers
Chinese construction workers build the port at Hambantota that analysts believe will become a base for its navy
by Jeremy Page, South Asia Times Correspondent
On the southern coast of Sri Lanka, ten miles from one of the world’s busiest shipping routes, a vast construction site is engulfing the once sleepy fishing town of Hambantota.
This poor community of 21,000 people is about as far as one can get on the island from the fighting between the army and the Tamil Tiger rebels on the northeastern coast. The sudden spurt of construction helps, however, to explain why the army is poised to defeat the Tigers and why Western governments are so powerless to negotiate a ceasefire to help civilians trapped on the front line.
This is where China is building a $1 billion port that it plans to use as a refuelling and docking station for its navy, as it patrols the Indian Ocean and protects China’s supplies of Saudi oil. Ever since Sri Lanka agreed to the plan, in March 2007, China has given it all the aid, arms and diplomatic support it needs to defeat the Tigers, without worrying about the West.
Even India, Sri Lanka’s long-time ally and the traditionally dominant power in South Asia, has found itself sidelined in the past two years — to its obvious irritation. “China is fishing in troubled waters,” Palaniappan Chidambaram, India’s Home Minister, warned last week.
The Chinese say that Hambantota is a purely commercial venture, but many US and Indian military planners regard it as part of a “string of pearls” strategy under which China is also building or upgrading ports at Gwadar in Pakistan, Chittagong in Bangladesh and Sittwe in Burma.
The strategy was outlined in a paper by Lieutenant-Colonel Christopher J. Pehrson, of the Pentagon’s Air Staff, in 2006, and again in a report by the US Joint Forces Command in November. “For China, Hambantota is a commercial venture, but it’s also an asset for future use in a very strategic location,” Major-General (Retd) Dipankar Banerjee of the Institute of Peace and Conflict Studies in Delhi said.
The British Navy used the Sri Lankan port of Trincomalee as its main regional base until 1957 and still shares a naval base with the US on the nearby island of Diego Garcia. China has no immediate plans for a fully fledged naval base but wants a similar foothold in the Indian Ocean to protect its oil supplies from piracy or blockade by a foreign power, analysts say.
Beijing sent three ships on an unprecedented anti-piracy mission to the Gulf of Aden in December, and in January a Chinese defence White Paper said that the navy was “developing capabilities of conducting co-operation in distant waters . . .”
China has cultivated ties with Sri Lanka for decades and became its biggest arms supplier in the 1990s, when India and Western governments refused to sell weapons to Colombo for use in the civil war. Beijing appears to have increased arms sales significantly to Sri Lanka since 2007, when the US suspended military aid over human rights issues.
Many of the arms have been bought through Lanka Logistics & Technologies, co-headed by Gotabhaya Rajapksa, the Defence Secretary, who is also the President’s brother.
In April 2007 Sri Lanka signed a classified $37.6 million (£25 million) deal to buy Chinese ammunition and ordnance for its army and navy, according to Jane’s Defence Weekly.
China gave Sri Lanka — apparently free of charge — six F7 jet fighters last year, according to the Stockholm International Peace Research Institute, after a daring raid by the Tigers’ air wing destroyed ten military aircraft in 2007. One of the Chinese fighters shot down one of the Tigers’ aircraft a year later.
“China’s arms sales have been the decisive factor in ending the military stalemate,” Brahma Chellaney, of the Centre for Policy Research in Delhi, said. “There seems to have been a deal linked to Hambantota.”
Since 2007 China has encouraged Pakistan to sell weapons to Sri Lanka and to train Sri Lankan pilots to fly the Chinese fighters, according to Indian security sources.
China has also provided crucial diplomatic support in the UN Security Council, blocking efforts to put Sri Lanka on the agenda. It has also boosted financial aid to Sri Lanka, even as Western countries have reduced their contributions.
China’s aid to Sri Lanka jumped from a few million dollars in 2005 to almost $1 billion last year, replacing Japan as the biggest foreign donor. By comparison, the United States gave $7.4 million last year, and Britain just £1.25 million.
“That’s why Sri Lanka has been so dismissive of international criticism,” said B. Raman of the Chennai Centre for China Studies. “It knows it can rely on support from China.”
Tuesday, April 28, 2009
Nineteen to the dozen
Nineteen to the dozen
Stats on the sale of mobiles are out and they just go on to prove that Chennaiites love to talk…
ANUSHA VINCENT- Times News Network
It seems we Chennaiites love to be in touch. How else would you explain the fact that while all other metros have shown a steep decline in the sale of mobile phones, Chennai alone has recorded 4.69 lakh new mobile phone users this year? So, now that it has been clearly established that we are a cell-phone-loving populace, the simple question is…why? “It is mainly because we Tamilians absolutely love talking!” exclaims TV anchor and actress Divyadarshini ( DD), “It’s in our blood. Inherently, we are garrulous and feel restless even if there is a moment’s silence. In this vein, mobile phones are lifelines for most of us as they hold our entire social lives in them!”
And rightly enough, most agree that while meeting over a cuppa and talking about good ol’ times is charming, in today’s hectic world, it makes more sense to have conversations over phone, wherever possible.
“People in Mumbai, Delhi and Bangalore party to socialise, Chennaiites do so by talking on the phone. In fact, I can say without hesitation that most of us would feel like Tom Hanks in Castaway, without our phones!” DD laughs.
However, socialising isn’t the only reason cell phones have got such giant status. “It would spell professional suicide if you don’t own a mobile phone,” points out model Kenith, “I need to keep wired in throughout the day, to keep in touch with coordinators, or to make appointments. It is laughable to even think you can survive without a mobile, in a world where every minute could be crucial in your life.”
Which brings us to the next point, Chennai has been listed as the city with the most SMS usage. Why this distinction (dubious or otherwise)? “Obviously because messaging is a lot simpler,” pips singer Kavita Thomas, “It is an easy way to have a conversation, even when you are not really free. Besides, it is also psychological. It is easier to get away with things when you type instead of talk.”
While the SMS rage that caught on some years ago has shown no signs of weakening, it is now becoming increasingly common to see school students typing away with lazy efficiency, while their sprightly fingers oblige without complaints. “Children are so intelligent these days and very inquisitive. So it is only natural that they are enamoured by the world of cell-phones where you are connected to the outside world 24/7,” muses Kenith, “However, they don’t know how much is too much. When mobile phones start eating into academic space, it is bound to become an issue.”
And then there are those who effortlessly juggle more than one mobile phone. A survey has found that the number of mobile phone subscribers as a percentage of the city’s population is the highest in Chennai, at 111 percent. This means that a sizeable chunk of the population has more than one mobile phone. Most of them are, of course, celebrities, but it isn’t strictly only them. Don’t be surprised if you notice the girl next door, swinging down the road, one phone in either hand. The reasons range from showing-off to, “I need to have two phones; my post paid connection doesn’t have free messaging, so I have another one just for the free messages,” as law student Deepika explains. And it isn’t only city students like her. Chennai has a floating population of more than one million. And for those in this category, it is imperative to own a mobile phone so that they can be in constant touch with family back home.
But while many feel that the mobile phone is one of the best things to have ever happened, there are those who see only its cons. Lecturer Ravishankar P is one among them. He concludes crisply, “We have reached a point where, given an option between human company and a mobile phone, we choose the latter. These instruments are perhaps isolating us more then we realise.”
Stats on the sale of mobiles are out and they just go on to prove that Chennaiites love to talk…
ANUSHA VINCENT- Times News Network
It seems we Chennaiites love to be in touch. How else would you explain the fact that while all other metros have shown a steep decline in the sale of mobile phones, Chennai alone has recorded 4.69 lakh new mobile phone users this year? So, now that it has been clearly established that we are a cell-phone-loving populace, the simple question is…why? “It is mainly because we Tamilians absolutely love talking!” exclaims TV anchor and actress Divyadarshini ( DD), “It’s in our blood. Inherently, we are garrulous and feel restless even if there is a moment’s silence. In this vein, mobile phones are lifelines for most of us as they hold our entire social lives in them!”
And rightly enough, most agree that while meeting over a cuppa and talking about good ol’ times is charming, in today’s hectic world, it makes more sense to have conversations over phone, wherever possible.
“People in Mumbai, Delhi and Bangalore party to socialise, Chennaiites do so by talking on the phone. In fact, I can say without hesitation that most of us would feel like Tom Hanks in Castaway, without our phones!” DD laughs.
However, socialising isn’t the only reason cell phones have got such giant status. “It would spell professional suicide if you don’t own a mobile phone,” points out model Kenith, “I need to keep wired in throughout the day, to keep in touch with coordinators, or to make appointments. It is laughable to even think you can survive without a mobile, in a world where every minute could be crucial in your life.”
Which brings us to the next point, Chennai has been listed as the city with the most SMS usage. Why this distinction (dubious or otherwise)? “Obviously because messaging is a lot simpler,” pips singer Kavita Thomas, “It is an easy way to have a conversation, even when you are not really free. Besides, it is also psychological. It is easier to get away with things when you type instead of talk.”
While the SMS rage that caught on some years ago has shown no signs of weakening, it is now becoming increasingly common to see school students typing away with lazy efficiency, while their sprightly fingers oblige without complaints. “Children are so intelligent these days and very inquisitive. So it is only natural that they are enamoured by the world of cell-phones where you are connected to the outside world 24/7,” muses Kenith, “However, they don’t know how much is too much. When mobile phones start eating into academic space, it is bound to become an issue.”
And then there are those who effortlessly juggle more than one mobile phone. A survey has found that the number of mobile phone subscribers as a percentage of the city’s population is the highest in Chennai, at 111 percent. This means that a sizeable chunk of the population has more than one mobile phone. Most of them are, of course, celebrities, but it isn’t strictly only them. Don’t be surprised if you notice the girl next door, swinging down the road, one phone in either hand. The reasons range from showing-off to, “I need to have two phones; my post paid connection doesn’t have free messaging, so I have another one just for the free messages,” as law student Deepika explains. And it isn’t only city students like her. Chennai has a floating population of more than one million. And for those in this category, it is imperative to own a mobile phone so that they can be in constant touch with family back home.
But while many feel that the mobile phone is one of the best things to have ever happened, there are those who see only its cons. Lecturer Ravishankar P is one among them. He concludes crisply, “We have reached a point where, given an option between human company and a mobile phone, we choose the latter. These instruments are perhaps isolating us more then we realise.”
Wednesday, April 15, 2009
NAIR-SAN
Pic:orginal Nair-san with his familyAN INDIAN FREEDOM FIGHTER IN JAPAN
A.M.Nair known as NAIRSAN
A.M.Nair known as NAIRSAN
Youth leader, patriot, colonial Britain’s Bete Noir, technocrat, linguist, advisor to the Indian diplomatic mission in Tokyo and eventually a business entrepreneur, Ayyappanpillai Madhavan Nair.
Following his schooling in his home state of kerala, he graduated as a civil engineer from Kyoto University in Japan. After a short stint as an engineer he was drawn inexorably into Japanese politics in which he functioned sometime as a Ronin, that character of rightwing activists who sought no personal rewards but wielded the highest influence in the country.
Nairsan, as he is commonly known, has lived in Japan for over half a century and also spent several years in Manchuria. Here he was an unofficial advisor to the Manchukuo government and the Kwangtung army and also conducted anti-colonial movements against British imperialism in India and other parts of Asia.
His advisory function was invariably marked by complete objectivity, integrity and independence, quality which earned him deep respect all round. For various purposes of his dealings with them the Japanese government recognized him as a personally equivalent in status initially to a major general and later to a lieutenant general.
Waging a most hazardous one-man crusade against the wool trade from Mongolia and Tibet to England, he successfully stopped the shipment of the goods to Manchester and Lancashire. During his Mongolian adventures which took him to regions some of which no other Indian has ever visited, he assumed many secret identities - a living Buddha, a camel caravan expert and a Muslim priest among them.
With Japan’s entry into the second world, Nairsan joined the Indian independence league in Japan and the south East Asian countries under the leadership of Rash Behari Bose – the legendary revolutionary in exile. Here he served as co-founder of the league and the chief link between the Indian freedom movement and the Japanese government.
In their forthright approach these memoirs constitute a valuable contribution to the history of India’s freedom struggle abroad.
In recognition of his dedicated and sustained contribution to the strengthening of friendly and cordial relations between India and Japan, Mr. Nair was awarded the exalted decoration of the order of merit of the sacred treasure (Kun zuihosho) by emperor Hiorohito in November 1984.
NAIR SAN: The legendary indian patriot in world cinema
1964 Japan Olympics. It was a thrilling moment for India when Indian Hockey Team won the Gold. But when the National anthem was being played at the medal distribution ceremony one among the crowd began shouting at the Japanese Government only because of the fact that instead of India ’s National Anthem the authorities played Pakistani National Anthem. Even though there were many officials and great personalities from India who were witnessing the incident none raised their voice other than this great Indian. That was the Indian legendary hero Ayyapan Pllai Madhavan Nair famous as Nair San in Japan. This is only one of the incidents which show the patriotism of this great man who became the reason for ending the Asian exploitation by the British during the freedom struggle.
For those who know Nair san personally he is special in different ways. Nair San had to leave his native land Kerala at the age of 18 as he campaigned among the students and led protests and marches against the social injustices of the British. He rebelled against the Education tax polled by English rulers. Being settled in Japan he struggled hard to root out the imperialism in Asian Countries. At the same time freedom fighters in India assembled men against English rulers. His efficiency in Japanese, Chinese and Spanish languages lifted him above all other Indian freedom fighters in Japan such as Netaji Subhash Chandra Bose, Rash Behari Bose, Pratap Singh, Barkathullah etc. Thus Nair San became an ever lively presence in the strong and well arming agitation organized by Indian National Army and Indian Independence League.
Many thrilling moments in the life of Nair San are unknown.. His strange experiences and dangerous encounters taking the roles of a trader, a Holy lama and a Soofi during his one man expedition and exploration through the deserts and Plateau of Manchukia , Ala Shaan , Mongolia , Tibet , and China in 1933 paved the way for ending the illicit wool trade of the British which contributed the major source of their income.
When a renowned film Director from Kerala like Albert honored with awards for his debut film decided to take up the story of Nair San for his next film it is a prestigious moment for the whole of India as the film is being designed in such a way so as to attract the aesthetics of the International audience. Albert’s passion and vision on Nair San is complemented by his tremendous urge to discover new eras on the subject and to create a truly international class Asian film spanning different cultures, languages and religions. The adventurous life of Nair San lighted the flame in Albert’s mind to create such a film where the Director’s creative concept is used more than the mere historical approach. The story is based on ‘Memories of Nair San’ the biography of A.M.Nair and the creative concept is developed by Albert himself.
Padmasree Mohanlal acts the lead role in the first Japanese film directed by an Indian. The other two famous actors in the film are selected from Bollywood. The leading Japanese actress is preferred to be the heroine of Mohanlal. As Nair San married a Japanese lady it is the perfect recreation by the director himself to select a Japanese actress as the heroine.
The world action hero Jackie Chan also in this film to play the role of a Cameo”,
Music maestro A.R.Rahman will be doing music for the film. The traditional Mongolian & Japanese songs included in the film will be a different experience for the music lovers. The $7.5 million budget film is said to be a different experience for the film lovers worldwide as it is the result of the hard work and enthusiasm of a handful of talented artists. As Japan is the second largest film market in the world the revenue calculated from the movie will be much more than the budget of the film. The major location of the film is Japan, Mongolia and India . The schedule of the film is planned within 145 days and it is expected to release by the end of 2008. Albert had been in hazardous attempt to secure all the detailed knowledge for the perfection of the film.
AR Rahman teams up with Japanese music composer Joe Hisaishi
AR Rahman has added another feather to his cap. The composer has now tied up with Japanese music composer Joe Hisaishi for the music of their forthcoming Indo-Japanese venture. Our source said, “Rahman, Bharat Bala (director) and some people from Disney (who are producing the film) met Joe Hisaishi in Tokyo on April 6 to discuss the film. Apart from Kamal Haasan and Asin, the film also stars Japanese actor Tadanobo Asano (Mongol,Wind Up Type,Last Life In The Universe).The movie will trace the origin of martial art in India.” According to our source, the film deals with Kalaripayattu, the martial art form of Kerala. The source added, “Kamal was very keen to work with a Japanese actor after he met Jackie Chan during the music release of Dasavataram. This is a $ 50 million (250 crores approx) project by Bharat Bala who will also be directing the film. Research work on the martial art form is currently on. The film will show that martial arts originated in India and not in Japan.” Bharat Bala and Rahman remained unavailable for comment.
Monday, April 13, 2009
100 youngsters give up hot jobs TO TEACH FOR INDIA
100 youngsters give up hot jobs TO TEACH FOR INDIA
Namita Devidayal
When 23-year-old Saurabh Taneja announced to his parents that he wanted to take two years off and teach underprivileged children, they were aghast. Their son had graduated from IIT (Delhi) and had a well-paying job as a consultant with a Bangalore-based company.
They had some very big questions for him: Why would you want to throw it all away? Why would you take such an enormous salary cut? Who had heard of Teach For India? What about the future? Saurabh realized that these were not issues he could discuss over the phone. He flew home to Jaipur, sat them down, and explained why he wanted to leave his comfort zone and enter a world where he may not even have fans above his head, or why he was willing to go from earning Rs 50,000 to Rs 15,000 per month. “I had to explain to them that this may be the most challenging thing I would do in my entire life,” he says.
Over the last couple of months, many 20-somethings have been similarly convincing their parents about their decision to mentor children. Says Gaurav Singh, 24, a software programmer with Accenture, "My mother was also understandably apprehensive about my decision to quit the corporate world and become a teacher. But when I told her in detail about the idea and the people behind Teach For India and also why I wanted to be a part of it she not only supported me but was also very proud of my decision.” It may have taken a little heartburn, but Saurabh and Gaurav are now on board.
Starting June this year, 100 such youngsters from different walks of life will be spread across in a unique national programme that seeks to narrow the educational gap in India by placing accomplished graduates and young professionals in low-income schools to teach for two years. The Teach For India fellows will undergo rigorous training in May and enter the classrooms after the summer vacation. This year, the programme is confined to 45 low-income private schools and municipal schools in Mumbai and Pune,.
Over a period of time, it will spread across the country. Teach For India founder Shaheen Mistri says, “Our Fellows represent the driving force of Teach For India’s movement. The energy, quality, commitment and passion of our candidates has been the most inspiring. It drives us to work relentlessly to ensure that Teach For India’s first class of 2009 is a success.” When asked what motivated them to apply for this fellowship, the youngsters are driven by a range of reasons—from an altruistic desire to give back to a very practical sense that they were, in fact, going to enhance their future. For, they realize that such an experience will broaden their leadership and management skills and add value to whatever they end up doing. This is perhaps why a number of companies – including the Aditya Birla group, Thermax, ICICI – are supporting the programme, agreeing to pay the stipends for, as well as reinstate, any employee who qualifies and takes the two years off to teach. For some, the two-year stint also promises to be an extraordinary, if challenging, adventure. “It is a crash course in how to manage challenges,” says Dhiren Achtani, 26, who currently works as a project manager for Citibank, “I am driven by that idea of slowly and steadily reaching that last mile where your students show signs of progress --progress that tells you that you added value and you made the child move from bookish knowledge to real knowledge and that you earned that bit of the day…”
Namita Devidayal
When 23-year-old Saurabh Taneja announced to his parents that he wanted to take two years off and teach underprivileged children, they were aghast. Their son had graduated from IIT (Delhi) and had a well-paying job as a consultant with a Bangalore-based company.
They had some very big questions for him: Why would you want to throw it all away? Why would you take such an enormous salary cut? Who had heard of Teach For India? What about the future? Saurabh realized that these were not issues he could discuss over the phone. He flew home to Jaipur, sat them down, and explained why he wanted to leave his comfort zone and enter a world where he may not even have fans above his head, or why he was willing to go from earning Rs 50,000 to Rs 15,000 per month. “I had to explain to them that this may be the most challenging thing I would do in my entire life,” he says.
Over the last couple of months, many 20-somethings have been similarly convincing their parents about their decision to mentor children. Says Gaurav Singh, 24, a software programmer with Accenture, "My mother was also understandably apprehensive about my decision to quit the corporate world and become a teacher. But when I told her in detail about the idea and the people behind Teach For India and also why I wanted to be a part of it she not only supported me but was also very proud of my decision.” It may have taken a little heartburn, but Saurabh and Gaurav are now on board.
Starting June this year, 100 such youngsters from different walks of life will be spread across in a unique national programme that seeks to narrow the educational gap in India by placing accomplished graduates and young professionals in low-income schools to teach for two years. The Teach For India fellows will undergo rigorous training in May and enter the classrooms after the summer vacation. This year, the programme is confined to 45 low-income private schools and municipal schools in Mumbai and Pune,.
Over a period of time, it will spread across the country. Teach For India founder Shaheen Mistri says, “Our Fellows represent the driving force of Teach For India’s movement. The energy, quality, commitment and passion of our candidates has been the most inspiring. It drives us to work relentlessly to ensure that Teach For India’s first class of 2009 is a success.” When asked what motivated them to apply for this fellowship, the youngsters are driven by a range of reasons—from an altruistic desire to give back to a very practical sense that they were, in fact, going to enhance their future. For, they realize that such an experience will broaden their leadership and management skills and add value to whatever they end up doing. This is perhaps why a number of companies – including the Aditya Birla group, Thermax, ICICI – are supporting the programme, agreeing to pay the stipends for, as well as reinstate, any employee who qualifies and takes the two years off to teach. For some, the two-year stint also promises to be an extraordinary, if challenging, adventure. “It is a crash course in how to manage challenges,” says Dhiren Achtani, 26, who currently works as a project manager for Citibank, “I am driven by that idea of slowly and steadily reaching that last mile where your students show signs of progress --progress that tells you that you added value and you made the child move from bookish knowledge to real knowledge and that you earned that bit of the day…”
Thursday, April 9, 2009
The two faces of Dhirubhai Ambani
The two faces of Dhirubhai Ambani
PARANJOY GUHA THAKURTA
HE achieved what almost everybody would consider impossible. In a life spanning 69 years, he built from scratch India’s largest privately controlled corporate empire. Dhirajlal Hirachand – better known as Dhirubhai – Ambani would often say that success was his biggest enemy. He was a man who aroused extreme responses in others. Either you loved him or you hated him. There was just no way you could have been indifferent to this amazing entrepreneur who thought big, acted tough, knew how to bend rules or have rules bent for him. He was a visionary as well as a manipulator, a man who communicated with the rich and the poor with equal felicity, who was generous beyond the call of duty with those whom he liked and utterly ruthless with his rivals – a man of many parts, of irreconcilable contrasts and paradoxes galore.
Dhirubhai Ambani expired on Saturday July 6, roughly ten minutes before midnight, at Mumbai’s Breach Candy Hospital where he had been admitted after he suffered a vascular stroke on the evening of June 24. This was his second stroke – the first had occurred more than sixteen years earlier, in February 1986, leaving the right side of his body paralysed. At his cremation, the well-heeled rubbed shoulders with the ordinary. No Indian businessman ever attracted the kind of crowd that Dhirubhai did on his last journey. After his cremation on the evening of Sunday July 7, his elder son Mukesh reminded those gathered on the occasion that in 1957, when Dhirubhai arrived in Mumbai from Aden in Yemen, he had only Rs 500 in his pocket.
He was not exactly a pauper since Rs 500 meant much more than what the amount means in this day and age. Nevertheless, one could not ask for a more spectacular ‘rags-to-riches’ tale. The second son of a poorly paid school-teacher from Chorwad village in Gujarat, he stopped studying after the tenth standard and decided to join his elder brother, Ramniklal, who was working in Aden at that time. (Not surprisingly, Dhirubhai ensured that his two sons went to premier educational institutions in the US – Mukesh was educated at Stanford University and Anil at the Wharton School of Business.)
The first job Dhirubhai held in Aden was that of an attendant in a gas station. Half a century later, he would become chairman of a company that owned the largest oil refinery in India and the fifth largest refinery in the world, that is, Reliance Petroleum Limited which owns the refinery at Jamnagar that has an annual capacity to refine up to 27 million tonnes of crude oil.
When he died, the Reliance group of companies that Dhirubhai led had a gross annual turnover in the region of Rs 75,000 crore or close to US $ 15 billion. The group’s interests include the manufacture of synthetic fibres, textiles and petrochemical products, oil and gas exploration, petroleum refining, besides telecommunications and financial services. In 1976-77, the Reliance group had an annual turnover of Rs 70 crore. Fifteen years later, this figure had jumped to Rs 3,000 crore. By the turn of the century, this amount had skyrocketed to Rs 60,000 crore. In a period of 25 years, the value of the Reliance group’s assets had jumped from Rs 33 crore to Rs 30,000 crore.
The textile tycoon’s meteoric rise was not without its fair share of controversy. In India and in most countries of the world, there exists a close nexus between business and politics. In the days of the licence control raj Dhirubhai, more than many of his fellow industrialists, understood and appreciated the importance of ‘managing the environment’, a euphemism for keeping politicians and bureaucrats happy. He made no secret of the fact that he did not have an ego when it came to paying obeisance before government officials – be they of the rank of secretary to the Government of India or a lowly peon.
Long before Dhirubhai entered the scene, Indian politicians were known to curry favour with businessmen – licences and permits would be farmed out in return for handsome donations during election campaigns. The crucial difference in the business-politics nexus lay in the fact that by the time the Reliance group’s fortunes were on the rise, the Indian economy had become much more competitive. Hence, it was insufficient for those in power to merely promote the interests of a particular business group; competitors had to simultaneously be put down. This was precisely what happened to the rivals of the Ambanis.
Who remembers Swan Mills? Or Kapal Mehra of Orkay? Even Nusli Wadia of Bombay Dyeing is a pale shadow of what he would certainly have liked to be. The undivided Goenka family that used to control the Indian Express chain of newspapers – which carried on a campaign against the Reliance group in 1986-87 – is currently divided into three factions. Whereas the multi-edition newspaper has not entirely lost its feisty character, it is yet to fulfil its late founder Ramnath Goenka’s cherished dream of becoming a market leader in at least one of its many publishing centres.
A popular joke starts with a question: Which is the most powerful political party in India? Answer: the Reliance Party of India. Others divide the country’s politicians into two groups: a very large ‘R-positive’ group and a very small ‘R-negative’ section. It is hardly a secret that Dhirubhai’s support base would easily cut across political lines. Very few politicians have had the gumption to oppose the Ambanis, just as the overwhelming majority of journalists in the country preferred not to be critical of the Reliance group. The Indian media, most of the time, has chosen to lap up whatever has been doled out by the group’s public relations executives.
The bureaucracy too has, by and large, favoured the Ambanis, not merely on account of the fact that many babus have got accustomed to receiving expensive hampers on the occasion of diwali.
While Dhirubhai did not have too many scruples when it came to currying favour with politicians and bureaucrats, what cannot be denied is the fact that perhaps no businessman in India attracted the kind of adulation he did. He was more than just a legend in his lifetime. He successfully convinced close to four million citizens, most of them belonging to the middle class, to invest their hard-earned savings in Reliance group companies. He was fond of describing Reliance shareholders as ‘family members’ and the group’s annual general meetings acquired the atmosphere of large melas attended by hordes.
What cannot also be refuted is the fact that the Reliance group believed in rewarding its shareholders handsomely. Much of the credit for the spread of the so-called ‘equity cult’ in India in recent years should rightfully go to Dhirubhai, even if the Reliance group was often accused of manipulating share prices. Two group companies that once carried the cumbersome names of Reliance Poly-Ethylene and Reliance Poly-Propylene – popularly called Ilu and Pilu – went to the extent of blandly stating in the fine print of their public issue prospectus documents that the value of the shares of the companies had been increased though thin and circular trading. On another occasion in January 1998, a functionary of Reliance Petroleum replied to a show-cause notice served on the company by agreeing to shell out a sum of Rs 25 crore to ‘buy peace’ with the income tax authorities.
When, after having spent eight years in Aden, Dhirubhai returned to Mumbai, his lifestyle was akin to that of any ordinary lower middle class Indian. In 1958, the year he started his first small trading venture, his family used to reside in a one room apartment at Jaihind Estate in Bhuleshwar. After trading in a range of products, primarily spices and fabrics, for eight years, Dhirubhai achieved the first of the many goals he had set for himself when he became the owner of a small spinning mill at Naroda, near Ahmedabad. He did not look back.
He decided that unlike most Indian businessmen who borrowed heavily from financial institutions to nurture their entrepreneurial ambitions, he would instead raise money from the public at large to fund his industrial ventures. In 1977, Reliance Industries went public and raised equity capital from tens of thousands of investors, many of them located in small towns. From then onwards, Dhirubhai started extensively promoting his company’s textile brand name, Vimal. The story goes that on one particular day, the Reliance group chairman inaugurated the retail outlets of as many as 100 franchises.
He had by then already succeeded in cultivating politicians. Indira Gandhi returned to power in the 1980 general elections and Dhirubhai shared a platform with the then prime minister of India at a victory rally. He had also become very close to the then finance minister Pranab Mukherjee, not to mention the prime minister’s principal aide R.K. Dhawan. He realised that it was crucial to be friendly with politicians in power, especially at a time when the group had embarked on an ambitious programme to build an industrial complex at Patalganga to manufacture synthetic fibres and intermediates for polyester production.
In 1982, Dhirubhai created waves in the stock markets when he took on a Kolkata-based cartel of bear operators that had sought to hammer down the share price of Reliance Industries. The cartel badly underestimated the Ambani ability to fight back. Not only did Dhirubhai manage to ensure the purchase of close to a million shares that the bear cartel offloaded, he demand physical delivery of shares. The bear cartel was rattled. In the process, the bourses were thrown into a state of turmoil and the Bombay Stock Exchange had to shut down for a couple of days before the crisis was resolved.
The mid-eighties were a period during which the Reliance group got locked in a bitter turf battle with Bombay Dyeing headed by Nusli Wadia. The two corporate groups were producing competing products – Reliance was manufacturing purified terephthalic acid (PTA) and Bombay Dyeing, di-methyl terephthalate (DMT). Wadia lost the battle and reportedly became the source of information for many of the articles against the Ambanis that subsequently appeared in The Indian Express. In 1985, the Mumbai police accused a general manager in a Reliance group company of conspiring to kill Wadia, a charge that was never established in a court of law. Many years later, a newspaper owned by the Ambanis would accuse Wadia of illegally holding two passports and played up the fact that he was Mohammed Ali Jinnah’s grandson.
1986 was a crucial year for Dhirubhai. He suffered a stroke in February that year. A few months later, the Express began publishing a series of articles attacking the Reliance group as well as the Indira Gandhi regime for favouring the Ambanis. These articles were coauthored by Arun Shourie who, ironically, as Union Minister for Disinvestment in the Atal Behari Vajpayee government, presided over the sale of 26 per cent of the equity capital of the former public sector company, Indian Petrochemicals Corporation Limited (IPCL), to the Reliance group in May this year. By gaining managerial control over IPCL, the Reliance group would now be able to dominate the Indian market for a wide variety of petrochemical products.
Shourie’s coauthor for the famous series of anti-Reliance articles was Chennai-based chartered accountant S. Gurumurthy who happens to be a leading light of the Swadeshi Jagaran Manch, an outfit that espouses the cause of economic nationalism and is closely affiliated to the Rashtriya Swayamsevak Sangh (RSS), the ideological parent of the ruling Bharatiya Janata Party (BJP). The Express articles written by Shourie and Gurumurthy meticulously detailed a host of ways in which the government of the day had gone out of its way to assist the Ambanis. One article was on the subject of how the Reliance group imported ‘spare parts’, ‘components’ and ‘balancing equipment’ of textile manufacturing machinery to nearly double its production capacities. The article provocatively claimed the Ambanis had ‘smuggled’ in a plant.
Another story detailed how companies registered in the tax haven, Isle of Man, with ridiculous names like Crocodile Investments, Iota Investments and Fiasco Investments had purchased Reliance shares at one-fifth their market prices. Curiously, most of these firms were controlled by a clutch of nonresident Indians who had the same surname, Shah. Though Pranab Mukherjee had to change a reply he gave in Parliament on the investments made by these firms, an inquiry conducted by the Reserve Bank of India could not find any evidence of wrongdoing. Yet another article detailed how the group had been the beneficiary of a ‘loan mela’ – a number of banks had loaned funds to more than 50 firms that had all purchased debentures issued by Reliance Industries.
Vishwanath Pratap Singh was one of the few politicians who took on the Ambanis. In May 1985, as finance minister in Rajiv Gandhi’s government, he suddenly shifted imports of PTA from the OGL (Open General Licence) category. At that juncture, Reliance needed to import this product to manufacture polyester filament yarn. It was found that the group had ‘persuaded’ a number of banks to open letters of credit that would allow it to import almost one full year’s requirement of PTA on the eve of the issuance of the government notification changing the category under which PTA could be imported. It was hardly a coincidence that soon after V. P. Singh fell out with Rajiv Gandhi, various tax agencies of the Indian government raided the premises of the Express group.
Things got difficult for the Ambanis after V.P. Singh became prime minister in December 1989. In 1990, government-owned financial institutions like the Life Insurance Corporation and the General Insurance Corporation stonewalled attempts by the Reliance group to acquire managerial control over Larsen and Toubro, one of India’s largest construction and engineering companies. Sensing defeat, the Ambanis resigned from the board of the company after incurring large losses. Dhirubhai, who had become L&T chairman in April 1989, had to quit his post to make way for D. N. Ghosh, former chairman of the State Bank of India.
Once again, in an ironical twist of fate, more than eleven years later, the Reliance group suddenly sold its stake in L&T to Grasim Industries headed by Kumaramangalam Birla. This transaction too attracted adverse attention. Questions were raised about how the Reliance group had increased its stake in L&T a short while before the sale to Grasim had taken place. The watchdog of the stock markets, the Securities and Exchange Board of India (SEBI) instituted an inquiry into the transactions following allegations of price manipulation and insider trading. Reliance had to later cough up a token fine imposed by SEBI.
These are hardly the only controversies involving the Reliance group. Two senior executives of the Reliance group, including one who was known to be close to Dhirubhai, have been accused of violating the Official Secrets Act after a Cabinet note was found in their office during a police raid. One of these executives reportedly had links with a mafia don. Earlier, there had been a major uproar in the stock exchanges over alleged cases of ‘switching’ of shares and the issue of duplicate shares. Some of these transactions pertained to Dhirubhai’s personal physiotherapist.
More recently, last year, Raashid Alvi, a Member of Parliament belonging to the Bahujan Samaj Party, levelled a large number of allegations against the Reliance group. He distributed a voluminous bunch of photocopied documents to journalists that included the letter in which a Reliance group company had sought to ‘buy peace’ with the income tax department. The MP accused the Reliance group companies of manipulating their balance sheets and annual statements of account.
A week after Dhirubhai’s death, the Department of Company Affairs (DCA) confirmed that there was basis to some of the allegations raised by Alvi and that there were certain discrepancies in the balance sheet issued by Reliance Petroleum seven years ago. A group spokesperson sought to dismiss the discrepancy as a minor printing error that had been inadvertently committed. The DCA subsequently confirmed that different Reliance group companies had transferred interest income to one another in a questionable manner.
The plethora of scandals and controversies surrounding the Reliance group left Dhirubhai’s supporters completely unmoved. His supporters – and there was no dearth of them – would argue that there was no businessman in India whose track record was lily-white. Had the textile tycoon himself not acknowledged once to Time magazine that he was no Mother Teresa, they would ask. Even Hamish McDonald’s unflattering portrayal of Dhirubhai in his book The Polyester Prince – published in Australia by Allen and Unwin and not available in India – acknowledges his remarkable entrepreneurial talent that made him one of the few Indians on the Forbes list of the world’s wealthy and placed Reliance among the leading 500 companies in the developing world compiled by Fortune magazine.
Senior journalist T.V.R. Shenoy, in a tribute to Dhirubhai entitled ‘A Superman named Ambani’ posted on the rediff.com website, points out that the Reliance group accounts for three per cent of India’s gross domestic product (GDP), five per cent of the country’s exports, 10 per cent of the Indian government’s indirect tax revenues (excise and customs duties), 15 per cent of the weight of the sensitive index of the Bombay Stock Exchange and 30 per cent of the total profits of all private companies in the country put together. Another journalist, Manas Chakravarty, concluded his not-so-adulatory article in the Business Standard with the following sentence: ‘…it was (Dhirubhai’s) common touch combined with his uncommon vision that was the secret of his success.’
Dhirubhai’s supporters like to recall instances of his ‘common touch’ and his ability to interact with individuals from different walks of life. In 1983, he had hosted a lunch for 12,000 of his company’s workers on the occasion of the marriage of his younger daughter Dipti. The departed Reliance group patriarch would often wonder aloud that if he could achieve what he did in a lifetime, why could a thousand Dhirubhais not flourish. He was sure that there were at least one thousand individuals like him in the country who would dare to dream big. And if all these entrepreneurs could achieve their ambitions, India would become an economic superpower one day, he would remark.
Dhirubhai’s managerial skills were undoubtedly exceptional and he would repose his faith in professionals, many of whom had earlier worked in much-maligned public sector organisations. Whether it was the building of the petroleum refinery at Jamnagar in three years at a capital cost that was 30 per cent lower than comparable projects, or the restarting of the Patalganga plant in one month’s time after sudden floods had occurred in July 1989, the Reliance management team displayed their competence on many occasions.
The Ambanis often scored because they stuck to their knitting or focused sharply on their areas of ‘core competence’. The group flopped when they entered new areas, be these the print medium or financial services. The group’s foray into power generation too has so far not yielded significant results. Dhirubhai’s sons, Mukesh (45) and Anil (43) are keen on effectively implementing their plans of diversifying into the ‘new economy’, into new areas like telecommunications, life sciences and insurance. The Reliance group intends proving telecom services in many parts of the country and is currently building an optic fibre based broadband internet network connecting 115 cities. Only time will tell whether Mukesh and Anil prove to be worthy successors to their father. But one thing seems certain: they will try their level best not to be as controversial as Dhirubhai was.
Secret wealth abroad
Secret wealth abroad
--S. Gurumurthy*
Switzerland has been accused of giving shelter to black money and there has been a lot of inflow of such wealth from India and other countries of the world.” This is not L K Advani, on election mode, speaking last Sunday, but the Swiss ambassador to India briefing the media in Delhi last year.
The occasion was the 60th anniversary of Indo-Swiss Friendship Treaty. Admitting that Indian black money gets hoarded in his country, he added that the new law in Switzerland would, not stop it, but control it “up to a certain limit”.
The Swiss diplomat authentically answers the first of the FAQs, that is, whether a lot of Indian money is really stashed away in Swiss banks. Swiss banks are not the only secret destination. There are 37 such shelters in the world, says US Inland Revenue. The secret owners of the secreted monies operate in secrecy — venal businessmen, corrupt politicians, public servants, drug lords, and criminal gangs like the D-company. The slush monies are the financial RDX for terror, besides weapons of mass destruction of national and global finance. That there is secret money is no more a secret. Only the amounts and persons are secret. But how much of India’s stolen wealth could be stashed in Switzerland? Specific estimates of this later. Before that, here is a sideshow, but a relevant one.
In the late 1980s, at the behest of The Indian Express, while investigating the Reliance scam, I had attempted to trail the Indian monies secreted abroad. In the course of the probe, I had contacted Fairfax, a US investigative firm, to uncover the Indian wealth stashed abroad. Impressed by their skills, I persuaded the Government of India to engage the firm for the task. Fairfax agreed to work for a slice of the black wealth uncovered by them as fee.
According to Swiss sources then, the Indian money secreted in Swiss banks was some $300 billion. That was enough to excite Fairfax to go for the kill. But, soon my efforts landed me in jail on March 13, 1987, when the CBI arrested me on charges that later turned out to be bogus, but were enough to stop the probe. The whole nation knew then that the real reason why rulers struck was their fear that the probe had targeted the Bofors payoff and secret money of the ruling family abroad. Rajiv Gandhi, who was the prime minister then, moved honest and bold civil servants like Vinod Pandey and Bhure Lal out of the probe and eventually sacked V P Singh who, as finance minister then, had authorised the efforts.
The chain of events that followed led to corruption emerging as the major issue in the 1989 polls in which Rajiv Gandhi, who had wiped out the opposition in 1984 elections, was defeated, and V P Singh became the prime minister. But there is a great lesson in these developments that often goes unnoticed. And that is, the way the bold national interest initiative to unearth the Indian black wealth abroad was aborted clearly confirmed that the ruling family was mortally afraid of any probe into secret money abroad. This fear haunts the family-led Congress party even today. That is why the 1987 episode is relevant now.
Now back to the main story.
Illicit money is the dirty outcome of modern capitalism. But, after 9/11, the US realised that not just the buccaneers in business, but Osama bin Laden could also hide his funds in secret havens and use them to bomb the world. Campaigns against dirty money as high security risk commenced with the path-breaking research done by Raymond W Baker, a Harvard MBA and a Brookings scholar. He published his research as a book Capitalism’s Achilles Heel: Dirty Money and How to Renew the Free- Market System. The book was published in 2005. This set off intense debate in the US as the exposure linked dirty business and dirty money with terror and national security.
Raymond Baker had estimated, using authentic data, tools and reasons, the dirty wealth secreted in banks at $11.5 trillion to which, he found, one more trillion was being added annually. He added that in the process the West was getting an annual bounty of $500 billion from the developing countries, India included.
Global Financial Integrity (GFI), a global watchdog headed by Baker to curtail illicit money flows, has recently brought out detailed estimates of the black wealth hoarded in secret havens from different countries. GFI research shows that during the period 2002 to 2006, annually $27.3 billion was stashed away from India, making a total of $137.5 billion for the five-year period. That is, in just five years, Indian wealth amounting to Rs 6.88 lakh crore has been smuggled out of India. This gives a clue as to how much Indian money would have slipped out of India in the last 62 years, particularly during the Nehruvian socialist regime when the income tax (97.5 per cent) and wealth tax (almost equal to the income earned on investments) together constituted double the income earned.
It is undisputed that the Nehruvian socialist model forced huge sums out of India. So the amount of Indian black wealth secreted away in the last 60 years — estimated at from $500 billion (Rs 25 lakh crore) to $1400 billion (Rs 70 lakh crore) — does not seem to be wide off the mark. Economists call it flight of capital. This is the people’s money stolen from them.
See the consequence even if part of it is brought back. A portion of it would make India free from all external debts which is now over $220 billion; India will transform into an economic superpower; some 10 or 15 Indian rupees could buy a US dollar which today 50 Indian rupees cannot; a litre of petrol on our roadside would cost Rs 15 or even less, against today’s 50 plus; the cost of imports in rupee terms would be down to a third or half; India’s entire infrastructure needs can be funded; India will become so energy efficient and costcompetitive that exporters may need no sops at all; India will lend to — not, as it does now, borrow from — the world; Indian housing can be funded at affordable cost; rural poverty can be wiped out... The list is endless. But, then, is it possible to bring back the secreted monies? What are the roadblocks to such efforts?
The occasion was the 60th anniversary of Indo-Swiss Friendship Treaty. Admitting that Indian black money gets hoarded in his country, he added that the new law in Switzerland would, not stop it, but control it “up to a certain limit”.
The Swiss diplomat authentically answers the first of the FAQs, that is, whether a lot of Indian money is really stashed away in Swiss banks. Swiss banks are not the only secret destination. There are 37 such shelters in the world, says US Inland Revenue. The secret owners of the secreted monies operate in secrecy — venal businessmen, corrupt politicians, public servants, drug lords, and criminal gangs like the D-company. The slush monies are the financial RDX for terror, besides weapons of mass destruction of national and global finance. That there is secret money is no more a secret. Only the amounts and persons are secret. But how much of India’s stolen wealth could be stashed in Switzerland? Specific estimates of this later. Before that, here is a sideshow, but a relevant one.
In the late 1980s, at the behest of The Indian Express, while investigating the Reliance scam, I had attempted to trail the Indian monies secreted abroad. In the course of the probe, I had contacted Fairfax, a US investigative firm, to uncover the Indian wealth stashed abroad. Impressed by their skills, I persuaded the Government of India to engage the firm for the task. Fairfax agreed to work for a slice of the black wealth uncovered by them as fee.
According to Swiss sources then, the Indian money secreted in Swiss banks was some $300 billion. That was enough to excite Fairfax to go for the kill. But, soon my efforts landed me in jail on March 13, 1987, when the CBI arrested me on charges that later turned out to be bogus, but were enough to stop the probe. The whole nation knew then that the real reason why rulers struck was their fear that the probe had targeted the Bofors payoff and secret money of the ruling family abroad. Rajiv Gandhi, who was the prime minister then, moved honest and bold civil servants like Vinod Pandey and Bhure Lal out of the probe and eventually sacked V P Singh who, as finance minister then, had authorised the efforts.
The chain of events that followed led to corruption emerging as the major issue in the 1989 polls in which Rajiv Gandhi, who had wiped out the opposition in 1984 elections, was defeated, and V P Singh became the prime minister. But there is a great lesson in these developments that often goes unnoticed. And that is, the way the bold national interest initiative to unearth the Indian black wealth abroad was aborted clearly confirmed that the ruling family was mortally afraid of any probe into secret money abroad. This fear haunts the family-led Congress party even today. That is why the 1987 episode is relevant now.
Now back to the main story.
Illicit money is the dirty outcome of modern capitalism. But, after 9/11, the US realised that not just the buccaneers in business, but Osama bin Laden could also hide his funds in secret havens and use them to bomb the world. Campaigns against dirty money as high security risk commenced with the path-breaking research done by Raymond W Baker, a Harvard MBA and a Brookings scholar. He published his research as a book Capitalism’s Achilles Heel: Dirty Money and How to Renew the Free- Market System. The book was published in 2005. This set off intense debate in the US as the exposure linked dirty business and dirty money with terror and national security.
Raymond Baker had estimated, using authentic data, tools and reasons, the dirty wealth secreted in banks at $11.5 trillion to which, he found, one more trillion was being added annually. He added that in the process the West was getting an annual bounty of $500 billion from the developing countries, India included.
Global Financial Integrity (GFI), a global watchdog headed by Baker to curtail illicit money flows, has recently brought out detailed estimates of the black wealth hoarded in secret havens from different countries. GFI research shows that during the period 2002 to 2006, annually $27.3 billion was stashed away from India, making a total of $137.5 billion for the five-year period. That is, in just five years, Indian wealth amounting to Rs 6.88 lakh crore has been smuggled out of India. This gives a clue as to how much Indian money would have slipped out of India in the last 62 years, particularly during the Nehruvian socialist regime when the income tax (97.5 per cent) and wealth tax (almost equal to the income earned on investments) together constituted double the income earned.
It is undisputed that the Nehruvian socialist model forced huge sums out of India. So the amount of Indian black wealth secreted away in the last 60 years — estimated at from $500 billion (Rs 25 lakh crore) to $1400 billion (Rs 70 lakh crore) — does not seem to be wide off the mark. Economists call it flight of capital. This is the people’s money stolen from them.
See the consequence even if part of it is brought back. A portion of it would make India free from all external debts which is now over $220 billion; India will transform into an economic superpower; some 10 or 15 Indian rupees could buy a US dollar which today 50 Indian rupees cannot; a litre of petrol on our roadside would cost Rs 15 or even less, against today’s 50 plus; the cost of imports in rupee terms would be down to a third or half; India’s entire infrastructure needs can be funded; India will become so energy efficient and costcompetitive that exporters may need no sops at all; India will lend to — not, as it does now, borrow from — the world; Indian housing can be funded at affordable cost; rural poverty can be wiped out... The list is endless. But, then, is it possible to bring back the secreted monies? What are the roadblocks to such efforts?
A deafening silence on funny money
It was unthinkable six months ago. Switzerland, once a pet of Western capitalism, is now its hate object. During World War II, the tiny nation was the common love of both the Allied and Axis powers, at war with each other. But neutral Switzerland, a friend of all since Napoleonic days, is friendless today. Its prime attraction, financial secrecy secured by law, has become its nemesis.
Germany first, France next, the US later, with the UK joining last, have, individually and together, declared a war against secret banking and tax havens like Switzerland.
It is a crusade by the West against the Swiss, says the media. Tax havens ask for no income tax from non-citizens and their banks ask no questions about their money. Modern capitalism had all along winked at secret banks
and tax shelters; even nicknamed secret money ‘funny money’. But now the West chases secret money like it targets al-Qaeda.
Why this miraculous shift? The short answer: ‘financial crisis’. The Guardian of UK wrote (March 4), “European leaders grew increasingly agitated at how tax havens have fostered secrecy that has contributed to the collapse of banks the world over”. The newspaper’s Tax Gap Series estimated the unaccounted global wealth held in secret havens, including Switzerland, at $13 trillion. The annual tax evasion on the dirty fund, estimated at $255 billion was, the newspaper said, twice the global budget for poor nations. Der Spiegel, a German magazine, reported (March 3) that “Cash strapped governments around the world see the opportunity to finally put an end to bank secrecy” to access the money concealed by their nationals. It added “British Prime Minister Gordon Brown, French President Nicholas Sarkozy and German Chancellor Angela Merkel are now joining forces” and “they have set their sights on Switzerland”.
The crusade against Swiss banks was started by Germany in early 2008 when its intelligence bribed — bribed? Yes — an informant in LGT Bank in Liechtenstein and got a CD containing the names of some 1,500 tax dodgers, and raided half of them, who were its citizens. It also offered, free of cost, the names of citizens of other countries. Many accepted the offer gratefully.
Thereafter, in the third quarter of 2008, Germany pressed the Organisation of Economic Co-operation and Development (OECD) to blacklist Switzerland for protecting tax dodgers.
Switzerland is an OECD member and twothirds of the Swiss speak German. Yet Germany couldn’t care less. Soon, France joined Germany.
“We want to put a stop to tax havens”, thundered Sarkozy.
At the preparatory G20 summit in Berlin early February, European leaders vowed to launch a global crusade against tax havens at the G20 meet in London, said the Irish Financial News. Europe’s anger was explicit in its refusal to allow the Swiss plea to be presented before the G20 in London.
The US moved even more menacingly. On February 18, the US Inland Revenue threatened the largest Swiss bank, UBS, with a lawsuit — that would have bankrupted it — unless the bank disclosed the names and accounts of some 300 American tax dodgers. A frightened UBS forthwith surrendered the secret data to the US before the account holders could stall it by a Swiss court order. Later, the Obama administration told the US Senate that it would bring laws to prise open the world’s most secretive tax havens.
At this point the UK joined the crusade.
Switzerland wilted under the pressure. Spiegel wrote that, for generations, the Swiss had held bank secrecy as “not negotiable”, and added that it was “no longer” so. The magazine quoted Swiss finance minister Merz as saying that they would have “to compromise”. The Swiss justice and foreign ministers, the magazine reported, had hinted that the country might have to stop protecting tax dodgers. Subsequently, a nervous Merz met Gordon Brown on March 14 with a deal to prevent any move in G20 to blacklist his country. The deal was that Swiss banks would adopt the bank transparency rules of OECD countries. Brown claimed that it was “the beginning of the end of banking secrecy”. Yet, the US is pressing ahead with a law to punish banking secrecy.
When the crusade of the West against Swiss banks is succeeding, here Dr Manmohan Singh and his government, instead of celebrating, seem to be worried at their success. Three bits of evidence expose the Congress-led government’s not-so-well-hidden worry. First, when Germany’s finance ministry offered the LTG bank secret data to any country that needed it, the government would not ask for it despite reports that it contained some 100 Indian names. When in April last year, L K Advani wrote to Manmohan, requesting to him to ask Germany for the data, the then finance minister responded evasively. Transparency International noted India’s “stoic silence over the issue” and that it “has not approached the German government for the data’’ (Economic Times, May 25 2008]. More, the revenue secretary in Delhi has reportedly advised the Indian ambassador in Berlin not to push Germany for the details as Germany might not like it – clear proof that the government is scuttling, not getting, the details.
Second, when, in the G20 preparatory meeting at Berlin, Germany and France were threatening to blacklist Swiss and other secret tax shelters, India’s silence at Berlin was deafening.
Montek Singh Ahluwalia, the PM’s righthand who, along with Dr Rakesh Mohan, represented India at Berlin, did not utter a word in support of Germany and France. India, a principal victim of banking secrecy, should have been leading the war cry against it. But it did not even morally support those waging the war.
Third, when on Sunday last L K Advani told Manmohan Singh that India should join in the G20 effort to break banking secrecy, the PM did not respond. The spokesperson of the Congress Abhishek Singhvi responded that G20 was not the forum for that, being blissfully ignorant of the fact that it was a main agenda of G20 meet.
In fact just ahead of the meeting, Sarkozy had threatened to walk out unless the G20 decisively acted against secret banks and tax havens.
No need to strain further to understand Manmohan’s compulsions. The fear that drove the ruling family to abort the 1987 probe into Indian monies secreted abroad is still evident. But Advani’s threat to turn the recovery of Indian wealth secreted abroad an election issue has got the PM and his party off guard. The party has blundered, saying G20 is not the forum, when it is precisely that. Now the prime minister cannot remain silent. He has to do something. At least make a show of doing. But can he? QED: Dr Manmohan Singh stands between the devil and the deep sea — between his party and L K Advani.
Germany first, France next, the US later, with the UK joining last, have, individually and together, declared a war against secret banking and tax havens like Switzerland.
It is a crusade by the West against the Swiss, says the media. Tax havens ask for no income tax from non-citizens and their banks ask no questions about their money. Modern capitalism had all along winked at secret banks
and tax shelters; even nicknamed secret money ‘funny money’. But now the West chases secret money like it targets al-Qaeda.
Why this miraculous shift? The short answer: ‘financial crisis’. The Guardian of UK wrote (March 4), “European leaders grew increasingly agitated at how tax havens have fostered secrecy that has contributed to the collapse of banks the world over”. The newspaper’s Tax Gap Series estimated the unaccounted global wealth held in secret havens, including Switzerland, at $13 trillion. The annual tax evasion on the dirty fund, estimated at $255 billion was, the newspaper said, twice the global budget for poor nations. Der Spiegel, a German magazine, reported (March 3) that “Cash strapped governments around the world see the opportunity to finally put an end to bank secrecy” to access the money concealed by their nationals. It added “British Prime Minister Gordon Brown, French President Nicholas Sarkozy and German Chancellor Angela Merkel are now joining forces” and “they have set their sights on Switzerland”.
The crusade against Swiss banks was started by Germany in early 2008 when its intelligence bribed — bribed? Yes — an informant in LGT Bank in Liechtenstein and got a CD containing the names of some 1,500 tax dodgers, and raided half of them, who were its citizens. It also offered, free of cost, the names of citizens of other countries. Many accepted the offer gratefully.
Thereafter, in the third quarter of 2008, Germany pressed the Organisation of Economic Co-operation and Development (OECD) to blacklist Switzerland for protecting tax dodgers.
Switzerland is an OECD member and twothirds of the Swiss speak German. Yet Germany couldn’t care less. Soon, France joined Germany.
“We want to put a stop to tax havens”, thundered Sarkozy.
At the preparatory G20 summit in Berlin early February, European leaders vowed to launch a global crusade against tax havens at the G20 meet in London, said the Irish Financial News. Europe’s anger was explicit in its refusal to allow the Swiss plea to be presented before the G20 in London.
The US moved even more menacingly. On February 18, the US Inland Revenue threatened the largest Swiss bank, UBS, with a lawsuit — that would have bankrupted it — unless the bank disclosed the names and accounts of some 300 American tax dodgers. A frightened UBS forthwith surrendered the secret data to the US before the account holders could stall it by a Swiss court order. Later, the Obama administration told the US Senate that it would bring laws to prise open the world’s most secretive tax havens.
At this point the UK joined the crusade.
Switzerland wilted under the pressure. Spiegel wrote that, for generations, the Swiss had held bank secrecy as “not negotiable”, and added that it was “no longer” so. The magazine quoted Swiss finance minister Merz as saying that they would have “to compromise”. The Swiss justice and foreign ministers, the magazine reported, had hinted that the country might have to stop protecting tax dodgers. Subsequently, a nervous Merz met Gordon Brown on March 14 with a deal to prevent any move in G20 to blacklist his country. The deal was that Swiss banks would adopt the bank transparency rules of OECD countries. Brown claimed that it was “the beginning of the end of banking secrecy”. Yet, the US is pressing ahead with a law to punish banking secrecy.
When the crusade of the West against Swiss banks is succeeding, here Dr Manmohan Singh and his government, instead of celebrating, seem to be worried at their success. Three bits of evidence expose the Congress-led government’s not-so-well-hidden worry. First, when Germany’s finance ministry offered the LTG bank secret data to any country that needed it, the government would not ask for it despite reports that it contained some 100 Indian names. When in April last year, L K Advani wrote to Manmohan, requesting to him to ask Germany for the data, the then finance minister responded evasively. Transparency International noted India’s “stoic silence over the issue” and that it “has not approached the German government for the data’’ (Economic Times, May 25 2008]. More, the revenue secretary in Delhi has reportedly advised the Indian ambassador in Berlin not to push Germany for the details as Germany might not like it – clear proof that the government is scuttling, not getting, the details.
Second, when, in the G20 preparatory meeting at Berlin, Germany and France were threatening to blacklist Swiss and other secret tax shelters, India’s silence at Berlin was deafening.
Montek Singh Ahluwalia, the PM’s righthand who, along with Dr Rakesh Mohan, represented India at Berlin, did not utter a word in support of Germany and France. India, a principal victim of banking secrecy, should have been leading the war cry against it. But it did not even morally support those waging the war.
Third, when on Sunday last L K Advani told Manmohan Singh that India should join in the G20 effort to break banking secrecy, the PM did not respond. The spokesperson of the Congress Abhishek Singhvi responded that G20 was not the forum for that, being blissfully ignorant of the fact that it was a main agenda of G20 meet.
In fact just ahead of the meeting, Sarkozy had threatened to walk out unless the G20 decisively acted against secret banks and tax havens.
No need to strain further to understand Manmohan’s compulsions. The fear that drove the ruling family to abort the 1987 probe into Indian monies secreted abroad is still evident. But Advani’s threat to turn the recovery of Indian wealth secreted abroad an election issue has got the PM and his party off guard. The party has blundered, saying G20 is not the forum, when it is precisely that. Now the prime minister cannot remain silent. He has to do something. At least make a show of doing. But can he? QED: Dr Manmohan Singh stands between the devil and the deep sea — between his party and L K Advani.
*Swaminathan Gurumurthy(Tamil: ஸ்வாமிநாதன் குருமூர்த்தி;Hindi: स्वामिनाथन गुरुमूर्ती) is the convenor of the Swadeshi Jagaran Manch and a well-known Chartered Accountant.
Gurumurthy is an acclaimed writer whose columns have found place on several dailies and periodicals. He is known for his radical views and opinions while his intense combination of words and moods are a testimony of his passion towards raging issues.
He is a nationalist to the core and is a strong proponent of the traditional Indian economic wisdom that was a part of every home and village model but has been slowly and stealthly been discarded by British Rule and subsequently by the disastrous and short-sighted Nehruvian economic policies post Independence.
Gurumurthy is an acclaimed writer whose columns have found place on several dailies and periodicals. He is known for his radical views and opinions while his intense combination of words and moods are a testimony of his passion towards raging issues.
He is a nationalist to the core and is a strong proponent of the traditional Indian economic wisdom that was a part of every home and village model but has been slowly and stealthly been discarded by British Rule and subsequently by the disastrous and short-sighted Nehruvian economic policies post Independence.
Monday, April 6, 2009
Prevent a cyber 26/11
Pic:Ankit Fadia, 23, is a cyber security expert. He helped police trace the email sent by terrorists soon after the 26/11 attacks on Mumbai.
Prevent a cyber 26/11
-by Ankit Fadia
The rising threat of terrorism has led to unprecedented levels of security at Indian airports, railway stations, hotels, ports etc. But the government does not seem to see the bigger threat, which will not come from AK-47s, bombs and rifles. The next big attack will be come from terrorists in the cyber world.
We live in a technologically interconnected world. Most of us cannot imagine even a single day without our cell phones, internet and ATMs. There is hardly any distinction between where our bodies end and technology begins. Would it be surprising then, if terrorists choose to attack India via the internet?
Let me share some facts about how real and damaging that threat can be If a terrorist group were to attack our stock market and financial infrastructure, it would cause widespread panic and losses to millions of people and organizations. Imagine yourself running helplessly from one ATM to another, trying to withdraw money from your account, only to find that the attack has forced banks to suspend online transactions.
Likewise, our telecom infrastructure. If it were flooded with malicious data, business and personal life would grind to a standstill. Terrorists could also target India's top businesses, hacking into their systems, stealing valuable intellectual property, sensitive information and company secrets. Even military networks can be targeted.
These scenarios are not from a Bollywood flick, but tangible threats that loom large. In May 2007, Estonia — a small but technologically sophisticated Baltic country — fell victim to a cyber attack. The unidentified terrorists bombarded the country's network with data traffic, clogging it and rendering major services unusable. People were not able to access financial utilities, communications and data services for several hours and some, for days together. What stops cyber terrorists from launching similar attacks in India?
Very little because, despite being an infotech power, India lags on cyber security. Neither the government, nor the private sector is adequately prepared to face a cyber attack. We have the necessary laws in place, but they are futile in the absence of trained security experts and police officials to enforce them. Recently, I was at a conference in the Capital, attended by numerous Delhi Police officials. During the question-answer session, one police official asked me: "All this is fine Mr Ankit, but yeh internet ki building kidhar hai?" According to him, the internet was a huge building and, in order to protect it from cyber terrorists, the police had simply to stand all around it, holding rifles and lathis to fight off viruses, worms and criminals! If this is the state of affairs in the police department of the national capital, one can't even begin to imagine the way it is in other cities.
The fact that few engineering colleges in India offer courses on cyber security is a major reason for the lack of cyber experts. The result is that when a private company website gets hacked, the incident is brushed under the carpet lest its brand image is tarnished. Worse, it's considered normal for most Indian government websites to get hacked regularly.
But the lack of trained professionals and a lax attitude are the least of India's concerns. The internet has no boundaries and allows cyber terrorists to hide behind geographic, political and diplomatic clouds. It is easy for a criminal to hide behind proxy servers and bounce off systems in unfriendly countries to stop security agencies from tracing the culprits. The dynamic nature of cyber security, coupled with the obsolete techniques used by the Indian forces, means it is a losing battle for India.
Let's not wait for a cyber 26/11 to happen. A willingness to make changes, a proactive approach with some nimble execution can fix the chinks in India's cyber security and drastically improve our preparedness to fight a cyber war.
Thursday, April 2, 2009
India Richest says Swiss Bank
Is India poor? Says who? Ask Swiss banks with personal account deposits of US$ 1500 billion in foreign reserve which have been misappropriated, an amount 13 times larger than the country’s foreign debt, one needs to rethink if India is a poor country.
If black money deposits was an Olympics event, India would have won a gold medal hands down. The second best Russia has 4 times lesser in deposits. US is not even there in the counting in top five!!
If black money deposits was an Olympics event, India would have won a gold medal hands down. The second best Russia has 4 times lesser in deposits. US is not even there in the counting in top five!!
India has more money in Swiss banks than all the other countries combined
Recently, due to international pressure, the Swiss Government agreed to disclose the names of the account holders only if the respective countries’ Governments formally asked for a list. The Indian Government is not asking for the details. No marks for guessing why!
Dishonest Industrialists, scandalous politicians and corrupt IAS, IRS, IPS officers have deposited their funds in foreign banks in their illegal personal accounts - a sum of about US$ 1500 billion.
Dishonest Industrialists, scandalous politicians and corrupt IAS, IRS, IPS officers have deposited their funds in foreign banks in their illegal personal accounts - a sum of about US$ 1500 billion.
Like stated above this amount is about 13 times larger than the country’s foreign debt. With this amount 45 crore poor people can get Rs 1,00,000 each.
This huge amount has been appropriated from the people of India by exploiting and betraying them.
Once this huge amount of black money and property comes back to India , the entire foreign debt can be repaid in 24 hours. After paying the entire foreign debt, we will have surplus amount, almost 12 times larger than the foreign debt.
If this surplus amount is invested in earning interest, the amount of interest will be more than the annual budget of the Central government. So even if all the taxes are abolished, even then the Central government will be able to maintain the country very comfortably.
2006 details bank deposits in the territory of Switzerland by nationals of following countries: Top five:
India - US$1,456 billion
Russia US$ 470 billion
UK - US$390 billion
Ukraine - US$100 billion
China - US$ 96 billion
Simple math - India with $1456 billion or $1.4 trillion has more money in Swiss banks than rest of the world combined. Public loot since 1947.
Some 80,000 Indians travel to Switzerland every year, of which 25,000 travel very frequently. Obviously, these people won’t be tourists. They must be traveling there for some other reason, believes an official involved in tracking illegal money. And, clearly, he isn’t referring to the commerce ministry bureaucrats who’ve been flitting in and out of Geneva ever since the World Trade Organization (WTO) negotiations went into a tailspin!
The following details describe how these dishonest industrialists, scandalous politicians, corrupt officers, cricketers, film actors, illegal sex trade and protected wildlife operators, to name just a few, sucked this country’s wealth and prosperity. This may be the picture of deposits in Swiss banks only. What about other international banks?
Some finance experts and economists believe tax havens to be a conspiracy of the western world against the poor countries. By allowing the proliferation of tax havens in the twentieth century, the western world explicitly encourages the movement of scarce capital from the developing countries to the rich.
In March 2005, the Tax Justice Network (TJN) published a research finding demonstrating that $11.5 trillion of personal wealth was held offshore by rich individuals across the globe.
The findings estimated that a large proportion of this wealth was managed from some 70 tax havens. Further, augmenting these studies of TJN, Raymond Baker in his widely celebrated book titled CapitalismsAchilles Heel: Dirty Money and How to Renew the Free Market System estimates that at least US$5 trillion have been shifted out of poorer countries to the West since the mid-1970.
It is further estimated by experts that one per cent of the worlds population holds more than 57 per cent of total global wealth, routing it invariably through these tax havens. How much of this is from India is anybody’s guess.
What is to be noted here is that most of the wealth of Indians parked in these tax havens is illegitimate money acquired through corrupt means.
Naturally, the secrecy associated with the bank accounts in such places is central to the issue, not their low tax rates as the term tax havens suggests. Remember Bofors and how India could not trace the ultimate beneficiary of those transactions because of the secrecy associated
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