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Corruption in Indian Politics: UPA's Legacy and PM Modi's Response

Writer's picture: MGMMTeamMGMMTeam

Introduction

Corruption has been a pervasive issue plaguing Indian politics for decades, eroding public trust and undermining the nation's progress. From the coal scam to the 2G spectrum scandal, the previous UPA government was embroiled in numerous high-profile corruption cases that shook the nation's conscience. However, the Modi government has taken decisive and multi-pronged action to combat corruption, ushering in an era of transparency and accountability.


Gandhi’s Attack on PM Modi

Senior Congress leader Rahul Gandhi launched a scathing attack on Prime Minister Narendra Modi on Tuesday, criticizing the electoral bonds issue as a form of extortion and accusing the government of using intimidatory tactics against targeted businessmen.


During his campaign in the Wayanad Lok Sabha constituency, Gandhi likened the electoral bonds to street extortion, saying, "What a common thief does on the streets, the PM is doing at an international level." He accused the BJP-led central government of employing sophisticated methods to threaten businessmen, alleging that agencies like the ED, CBI, and Income Tax Department are used to coerce them into favoring certain individuals, like Adani. Gandhi highlighted instances where such intimidatory tactics allegedly led to businessmen purchasing electoral bonds for the BJP. He referenced a recent interview of Modi, accusing him of defending the electoral bond scheme, which Gandhi labeled as the "biggest corruption scandal on the planet."


Further, Gandhi criticized Modi's governance, stating that the PM lacks understanding of running the country and often resorts to distracting people from real issues. He mocked Modi's suggestions during the COVID-19 pandemic and accused him of favoring a few wealthy businessmen, neglecting the concerns of farmers, unemployment, and rising prices.



Promising a different approach, Gandhi pledged to waive farmers' loans, provide financial support to women from poor families, and ensure one-year paid internships for graduates or diploma holders. He also vowed to provide 50% reservation for women in government jobs and Parliament, double the wages of Asha workers and women in Anganwadis, simplify GST, and cancel the Agnipath scheme.


Accusing the BJP and RSS of attempting to undermine the Constitution, Gandhi asserted that the Congress manifesto represents the voice of the people, unlike the BJP's empty promises.


Gandhi conducted a massive roadshow in Kodiyathur as part of his campaign for the upcoming Lok Sabha polls in Kerala, accompanied by hundreds of supporters. He reiterated his commitment to the Wayanad constituency, aiming for another victory after his record win in 2019.


The UPA Government's Scandalous Legacy

The UPA government, under the leadership of the Indian National Congress, found itself mired in a series of scandals during its tenure from 2004 to 2014. These scandals not only tarnished the government's reputation but also resulted in massive losses to the public exchequer.


1. The Coal Scam (2012): The release of the Comptroller and Auditor General (CAG) report in 2012 exposed discrepancies in the allocation of 194 coal blocks between 2004 and 2011, alleging a loss of Rs. 1.86 lakh crore to the treasury. The government's failure to auction these coal blocks transparently drew sharp criticism, highlighting the alleged favoritism and corruption in the allocation process.


2. The 2G Spectrum Scam (2008): In 2008, the UPA government granted 122 telecom licenses to various companies, many of which lacked substantial experience in the telecom industry, at rates determined in 2001. This controversial decision was estimated to have caused a loss of Rs. 1.76 lakh crore to the government, raising questions about the fairness and transparency of the allocation process.


3. The Chopper Scam (2012): The AgustaWestland VVIP chopper scam involved allegations of bribes paid to Air Chief Marshal S.P. Tyagi, the former Chief of the Indian Air Force, to influence a Rs. 3,600 crore deal with the Italian company Finmeccanica for the procurement of 12 helicopters for VVIP transport.


4. The Tatra Truck Scam (2012): Former Army Chief Gen. V.K. Singh claimed that he was offered a bribe of Rs. 14 crore in 2010 to approve the purchase of 1,676 Tatra trucks for the Indian Army. The Enforcement Directorate initiated a case under the Prevention of Money Laundering Act (PMLA) in 2013, targeting Vectra Chairman Ravi Rishi and several other companies involved in the scandal.


5. The Commonwealth Games (CWG) Scam (2010): Suresh Kalmadi, the former chairman of the Organizing Committee for the 2010 Commonwealth Games in Delhi, along with nine others, faced charges of cheating, conspiracy, and causing a loss of over Rs. 90 crore to the exchequer through corruption related to the Games.


6. The Cash-for-Votes Scam (2011): In 2008, three BJP MPs displayed Rs. 1 crore in cash in the Lok Sabha, alleging that it was offered to them by intermediaries of the UPA government to secure their support during a no-confidence motion. The scandal implicated Amar Singh, a Rajya Sabha MP, whose residence was allegedly used as a hub for distributing cash to cooperative MPs.


7. The Adarsh Scam (2012): The Adarsh housing society scam erupted when it was revealed that land designated for defense purposes in Mumbai had been allocated for a cooperative housing society, where bureaucrats and politicians had secured flats in the luxurious 31-storey building overlooking the defense area.


8. The IPL Scam (2013): In 2013, the Delhi Police arrested three Rajasthan Royals players – S. Sreesanth, Ajit Chandila, and Ankeet Chavan – on suspicion of involvement in spot-fixing during the Indian Premier League (IPL) matches.


9. The Satyam Scam (2009): B. Ramalinga Raju, the main accused in the multi-crore Satyam Computers accounting scandal, admitted to tampering with the company's accounts by inflating the figures by $1.47 billion. These scandals, which spanned various sectors and involved vast sums of money, highlighted the extent of corruption that had permeated the UPA government's functioning.


The Modi Government's Decisive Action Against Corruption

Upon assuming power in 2014, the Modi government made combating corruption a top priority, implementing rigorous measures to curb the generation of illicit funds and ensure accountability for economic wrongdoers.


Tackling Black Money:

- The government established a court-monitored Special Investigation Team (SIT) to uncover illicit funds, leading to the tracing of over Rs. 70,000 crores, with Rs. 16,000 crores traced to offshore accounts.

- The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, was enacted, imposing penalties of up to 90% of the undisclosed asset's value, along with a 30% tax and the possibility of rigorous imprisonment.

- Double Tax Avoidance Agreements (DTAAs) were renegotiated with countries like Mauritius, Singapore, and Cyprus to combat treaty abuse, tax evasion, and the routing of funds through tax havens.

- The Automatic Exchange of Information (AEOI) agreement with Switzerland facilitated the sharing of information on accounts held by Indian residents in Swiss banks, starting from September 2019.

- The long-awaited Benami Transactions (Prohibition) Amendment Act, 2016, enabled the confiscation of benami property and prosecution of parties involved, with penalties including imprisonment and fines.

- The Fugitive Economic Offenders Act, 2018, empowered investigative agencies to seize assets of economic offenders who evade justice by fleeing the country, aiding in the repatriation of accused individuals and the recovery of losses for financial institutions.


Addressing Non-Performing Assets (NPAs):

- The Modi government unearthed and addressed the massive NPAs concealed during the UPA regime, initiating their resolution through the Insolvency and Bankruptcy Code.

- This process aided in the recovery of over Rs. 3 lakh crore for banks and creditors, promoting corporate responsibility and accountability for loans acquired from public funds.


Combating Corruption:

- For the first time, the government took proactive steps to curb the generation of illicit wealth, bringing approximately Rs. 1,30,000 crore of undisclosed income under taxation.

- The government's relentless pursuit of black money halted decades of corruption and ensured that justice prevailed, fostering a clean economy for New India.


Conclusion

The Modi government's decisive and multi-pronged action against corruption has been a significant departure from the past, marking a new era of transparency and accountability in Indian politics. By implementing stringent measures to tackle black money, addressing non-performing assets, and promoting corporate responsibility, the government has demonstrated its unwavering commitment to root out corruption and foster a clean economy. While the legacy of scandals from the UPA era remains a stain on India's political landscape, the Modi government's efforts offer hope for a corruption-free future and a more prosperous nation built on the principles of good governance and integrity.

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