'The government itself is a scam'
We asked our readers if they thought government laxity was in any way responsible for market scams.
The readers' responses have been prolific. Barring a few, all seemed to feel that it is purely lack of strict policing by the government that causes such scams.
'Corruption and greed is the main reason for these scams' and `everyone is out to make a fast buck,' say irate readers.
Others blame it on the lack of an efficient regulatory body and stringent laws.
Here we reproduce some of the responses the query generated:
Thu Dec 19 17:07:20 2002
Name:: Sandeep Shouche
Email:::shouches@yahoo.co.uk
Your Views:: Not just the stock scam, every scam in India arises for only one basic reason. Indians like to make money, not earn it. Everybody is out to make a fast buck. Nobody wants to work for a proper living. That Ketan Parekh and his cronies
subverted the system, that the regulators looked the other way, that the finance ministry was caught napping, everything is only symptomatic of this deeper malaise affecting the Indian mindset. Till this mindset changes, the government and regulators will forever be playing catch-up to some new devious method that the next generation Harshads and Ketans will device.
Thu Dec 19 17:09:47 2002
Name::Gautam
Email:::gautamm@rediffmail.com
Your Views::THE GOVERNMENT ITSELF IS A SCAM.
Thu Dec 19 17:24:57 2002
Name::Praveen Kumar
Email:::praveenkumar_soft@rediffmail.com
Your Views:: Since each and every thing is monitored by finance ministry so after such a big scam we shouldn't absolved any person related to this project. How it could be possible that a junior person will do such a big daring without taken his boss in
cofidence. Lets consider that he had not taken his boss in confidance but when u r boss it means u should have all knowledge of each and every thing what your junior is doing and if you r saying you don't had idea then what u were doing at that time. Means you were sleeping. Being on such a responsible position if u neglected this means either you were never able of this post or u just closed your eyes and let them them do what they wanted.In both case you are responsible. If any scheme get success then finance minstry say they have sanctioned it and when it has failed they can't get ride of it.
Thu Dec 19 17:38:10 2002
Name::PSRao
Email:::psrao45@hotmail.com
Your Views::the basic reason for the scams is that Government appoints the chairman of UTI and he has to satisfy the political powers for continuing as chairman.The employees of corporations such as UTI could serve as a check on the misuse of powers
of chairman in their own interest if chairman is not so powerful and the employees have a way of bringing to light misuse of powers by the chairman.The Boards are ineffective.
Thu Dec 19 17:41:12 2002
Name::Sadagopan K
Email:::sadss71@rediffmail.com
Your Views::Yes it is purely Government laxity responsible for Stock Scams. All these scams are happening because of the Black money market is growing in india. Who is making and minting black money, only the politicians, Government officials &
business peoples. Unless or otherwise if we dont have control and law to check this black money, these type of scams are bound to happen. I am sure the politician won't frame any law to check this, because they are living in that money only. How can a Finance Minister allow the Chairman of UTI to keep him in dark about UTI? Its million dollar question. Who is this JPC? They are also enjoying this black money market.
Thu Dec 19 18:30:24 2002
Name::santaclaus
Email:::santa@claus.com
Your Views::Absolutely. After all there's no one else to blame.
Thu Dec 19 18:39:18 2002
Name::Anand Seksaria
Email:::akseksaria@rediffmail.com
Your Views::No
Thu Dec 19 18:51:44 2002
Name::chandrasekaran
Email:::chandrasekaran_36@yahoo.com
Your Views:: No doubt the officers of the finance ministry hve not exercised the diligence expected of them but their political masters cannot absolve their responsibility. had proper reviews have been undertaken in time such a fiasco would not have
occurred.
Thu Dec 19 19:02:09 2002
Name::j n gupta
Email:::jngupta@ocean-oil.com
Your Views:: laxity inherent in the system due to lack of knowledge etc and deliberate both are responsible. second type of laxity is causing much more problem and compounding the effect .as a result of which we are in such a state that scams are as
common as daily news paper. the whole system is to be blamed right from politicians/executive/civilservants/govt and even judiciary. a time has come wher we have to go back to history and learn kautilya's arthashastra.which had prescribed system of punishment. till such time the riches that one has reaped from scams are allowed to be isolated from the person who commited the crime we will always have the scams multiplied.look what is the punishment we (system )has given to promoters of
jvg/crb/plantation schemes/etc.the reason is simple there are godfathers for all of them and law has become just a show piece or a ritual which has just to be completed without any results.we some time feel so helpless that after 55 years of independence
we are so dependent on god for keeping the country going rather then the systems. in my opinion financial crime is worse than the first degree murder as the scamster doesnt even know the victim
Thu Dec 19 19:25:43 2002
Name::naresh gelli
Email:::nareshgelli@hotmail.com
Your Views::I must confess that the ministry of finance has a broader role to moniter and control the events in finances in the economic market. The events are being reported in news papers on a daily basis and the ministry has various departments to
take care of these events in the market. These departments should also have enough powers to make a quick decision (responsibility ) and could be questioned if the decision is not made in the best interest of the nation ( accountability ). The RBI
also should be having a observatory role on various events happening in the country. There is definately a strong case for professionals to be involved into these matters. After all the IAS officers would be more concerned about the administrative
matters than the seriousness of the financial matters. I hope central government should involve the professional bodies into the overall monitoring body, which could be constituted to have a broader view of events happening in the country.This body
should take corrective steps immediately that much after the event has happend and the damage is done to the economy and the nation. These are the lessons we learn over the years and should not be repeated
Thu Dec 19 19:41:01 2002
Name::PS Subramanyam
Email:::pss@yahoo.com
Your Views::He should be sacked. All these bureaucrats have been using PSUs for their own ends. The time has come to pay the bill. Question is who will.
Thu Dec 19 19:58:07 2002
Name::ansar ahmed faizy
Email:::ansar_fzy@hotmail.com
Your Views::its not just the govt laxity its the wishes of a few corupt ministers and babus in the govt who are responsible
Thu Dec 19 20:01:49 2002
Name::Sreedhar Badhe
Email:::sridharbadhe@rediffmail.com
Your Views::No we cannot keep the blame on the government, coz at the time of creating the rules and regulations some points will be taken into consideration and the rules will be build. This leaves some loop holes. The people who make scams will be taking those loop holes. So while investigation is going on they will show the articles and they will tell that according to this article this should be possible. So it is that the person who has done scam is more intelligent than the people who design the articles. It doesn't mean that we need to blame the officials who design the articles because they will be having their own views and limitations while designing those articles. So there is no need to blame the government also.
Thu Dec 19 20:09:27 2002
Name::Shaji
Email:::storyeditor@hotmail.com
Your Views::What's the big deal in this indictment. They'll remain in paper, as usual, and splashed by the media, while the cuplrits like Ajit Kumar, Subramnyam will leave happily ever after. Now the govt will
create another committee to go into the JPC.. more committes and more committes... and out babus will continue to share the spoils with the criminal in parliament! Even God can't save this country. The only solution: relocate our babus and parlaiment
criminals to Andaman, and create an enviornment where they think they're looting the public!
Thu Dec 19 20:36:55 2002
Name::vibhavasu sharma
Email:::vasu_sharma2k@rediffmail.com
Your Views::Dear Sir, As in the past jpc has done an eyewashing probe. Major players responsible for re-enactment of the earlier episode have escaped. Powerbrokers have again succeeded to dilute the facts.It will take several decade for the country
to have the dareness to indict all the people responsible for the sorry state of the country.In my opinion all the guilty
Name: or
un-
Name:d should be put behind bars for playing with investors/banks money.They deserve this.
Thu Dec 19 20:40:42 2002
Name::Babur
Email:::braman1@umbc.edu
Your Views::Definitely. If it happens once, twice, thrice, one can imagine the government being taken by surprise and highlight on the ill-preparedness and fool-proof systen in place. At the same time, each and every scam teaches a lesson and methods to
avoid such scams in the future have to be studied carefully. All the governments have time and again failed and are to be blamed.
Thu Dec 19 20:52:13 2002
Name::Kuriakose P Pallacheril
Email:::kuria@satyam.net.in
Your Views::Investment in Political boss's companies/sponsored ones or party's Ompanies and inexperience of IAS babus are responsible for these type of scams. Unless all these Babus are punished, such scams can't be stopped. This is a very easy
method to syphon funds, with just a telephone call cost for these babus and ministers & their Frineds. There will be no end in India for such scams. These Babus and regulatory body babus should be put in prison till they die.
Thu Dec 19 20:53:33 2002
Name::raj
Email:::raj@yahoo.com
Your Views::BJP RSS VHP THEY WILL MAKE INDIA LIKE RUSSIA IN 1992 SMAL 20 INDIAS. I BELIVE DO U?????
Thu Dec 19 21:00:38 2002
Name::Srinivas
Email:::srini_1977@rediffmail.com
Your Views:: Do You Think Govt Laxity is to Blame For Scams? No. Not the Government. But the Erring Politicians and Officials.
Thu Dec 19 21:06:06 2002
Name::W. Goveas
Email:::wgoveas@hotmail.com
Your Views::The main problem in India is we dont have statutory independent Bodies to oversea our financial system. Curruption and greed is the main reason for the many scams and when politians get a handful of rupees free and dont lose any
then why they should care for the ordinary Indians on the streets. Ordinary Indians can get justice only if we have unbiased
institutions from whom we can get justice without fear and favour.
Thu Dec 19 21:07:09 2002
Name::Raj Devireddy
Email:::raj_devireddy@yahoo.com
Your Views::Yes Sir. Investors get the impression that Govt. is lax and doesn't care about the common investor. Our Babus and politicians are too busy safeguarding thier chairs to worry about investors. Worse they leak the information to thier
Friends, who makes mony again at the expense of small investors. If this is the way our system is going to work, markets will completely loose confidence causing it to collapse and taking the industry with it. This will cause lot of problems. As you can see in US the
stockmarket dictates the economy and industry, hence we should take at most precautions to make at least this work without
any scandals and utmost transperency. Thanks RAJ
Thu Dec 19 21:16:01 2002
Name::Raj Grandhi
Email:::gvrajagopal@yahoo.com
Your Views::Yes. Govt laxity is the problem. We have too many laws. Too many inspections and Too many approvals from
the goverment. But not enough monitoring is done to see if citizens are following the laws. If some flaws are found govt officals
take it as oppurtunity to make under table money but let go the offender. WHat we need is lot lesser laws. Lot lesser
approvals. But a fear of the laws by citizens of india. The govt should monitor if all the laws are followed. That is their job and
punish the guilty. JPC findings is nothing new. The question is will Indian GOvt and Indian citizens and Indian politians will learn
from this mistake and change the way the things are done in India?
Thu Dec 19 21:24:16 2002
Name::godfrey j.i.gonsalves, borda margao goa
Email:::gonsalvesgodfreyji@yahoo.co.in
Your Views::Who appoints the incumbents to the various posts in the Government? Are they not political appointees? If yes,
then once the "system" has been put in place how can just one individual be held responsible? Is it not a fact that the excutive is
invariably made "subservient to the whims and fancies of the Parliamentarians and the Union Cabinet? Answers to these in the
affirmative cleary reveal that government laxity is responsible for stock scams.
Thu Dec 19 21:33:44 2002
Name::G. R. Kullkarni
Email:::ganeshk@bol.net.in
Your Views::If reforms mean just selling Government assets at any cost disregarding the basic aim of disinvestment, the answer
is yes. If it will serve any good to the public, the answer is no. G. R. KULKARNI
Thu Dec 19 21:43:33 2002
Name::Aniruddha
Email:::anilkhandekar@hotmail.com
Your Views::I dont see why government (and essentially public) money should be used to bail out a private enterprise - which
is what UTI says it is. If the management is not capable of running a profitable ship then maybe it is time to close shop. I dont
see any reason that the government should be held responsible for the mess UTI is in now.
Thu Dec 19 21:48:24 2002
Name::Rohit Gupta
Email:::rohit50@hotmail.com
Your Views::I think it is not as much government laxity, as it is bureaucratic incompetency and accountability that is responsible
for the scams. Make one of top executives totally and singly accountable for preventing the scams and see the results. Make
news who is responsible and give him a chance. I am sure results will follow.
Thu Dec 19 22:03:59 2002
Name::KANUBHAI SHUKLA
Email:::kanushukla@aol.com
Your Views::Certainly. When some scrips suddenly rises beyond all norms,concerned govt.depts must immediate take a critical
view and probe.There are many evident economic indicators. When in the height of Harshad Mehta Bull Market,even the
finance minister-a prominent economist and prime minister were patting his back, I was taken aback by a twoline news item in
middle pages"INTER-BANK RATE WAS 100% OR SO" It was fishy somewhere. As a layman student of economic history,
I remembered the crash of GREAT DEPRESSION of 1930s,when the American banks were involved in speculative trading
beyond all proportions to get rich quick.Reserve Bank should have acted quickly.I wanted to wire Governor of RBI but in
euphoria, I would have been laughed at. I always wondered why this simple indicator escaped the controlling authority Reserve
Bank, finance ministry etc. Was it simple laxity,direct involvement,wilful negligence, shirking the responsibilty or reaping the
benefits of insider trading-matters for postmortem and precautions. If the lesson was learnt ,serious measures taken, incidence
of Ketan parekhs and crash of co-operative banks could have been avoided. Big play is always with bank funds.
Thu Dec 19 22:04:55 2002
Name::Durga Jonnalagadda
Email:::durga_jvl@yahoo.com
Your Views::Yes..I totally agree that it is because of Govt. laxity over supervision and regulations. Long delay in Court trails is one of the major factors that is contributing to these scams.
Thu Dec 19 22:43:23 2002
Name::Pichaimani Balasubramanian
Email:::bpichai@yahoo.com
Your Views:: Not only the govt. laxity I think it is hand in glove with the scamsters. One of the causes of the UTI collapse is because of the Finance Ministry in forcing UTI to invest in the companies floated by scamsters in the Prime Minister's
constituency. I certainly feel the JPC should have the PM and the then Finance Minister Sinha also for the collapse. After all the scams the politicians always escapes. We need a separate independent body to monitor the govt. owned financial institutions
and banks certainly not the Finanace Ministers. It should be like the Election Commission. Thanks
Thu Dec 19 23:59:00 2002
Name::Mortimer Zuckerman
Email:::parleperl@yahoo.com
Your Views::No, This government is the cleanest we have had in years and most honest too.I don't think BJP govt. is responsible for scams.
Fri Dec 20 00:13:00 2002
Name::Mahipal Reddy
Email:::alak350@yahoo.com
Your Views::Absolutely. Yes, government laxity is one of the main reasons if not the only one. Which responsible government around the world would sit and watch as its citizens are constantly short-changed in one scam or the other? There is no end to
these scams and no steps seem to be taken to bring the offenders to justice. Under a functional, accountable and responsible
government one would expect not just a reduction in the "scams", but also strongest deterrents in place against future ones.
Fri Dec 20 01:46:12 2002
Name::Anand Devaraj
Email:::and_dev@hotmail.com
Your Views::The victory has got nothing to do with reforms. Even if BJP wins at the center again, the pace of the reforms is not going to improve. It is going to get perenially entangled in the infamous bureaucracy. Reforms has become a very fashionable
word. But to put it straight, India is not ready for any reforms. First straighten out the policies, lay down strict regulations,
appoint a whole lot of independent economic watchdogs, abolish bureaucracy and get the sector priorities right, each of which
is sadly lacking today. With no proper regulations, reforms will only make the rich(and powerful) richer and scamsters even
more bolder. Poor people will get more and more marginalized. Nowhere in the world has reforms been carried out in such a lawless and unprofessional way. China, our neighbour and contemporary is a prime example of what a good governance can
achieve coupled with good reforms. Sadly India never seems to learn from its mistakes. Maybe thats what our politicians want. All they are concerned is how to encourage religious bigotry so that they can remain in power.
Fri Dec 20 02:16:02 2002
Name::worldupsidedown
Email:::worldupsidedown@rediffmail.com
Your Views::sebi,clb was not only was a toothless tiger but was also a facilitator for big brokers and businesses, corrupt trustees of uti and politicians who worked in a chaotically systematic manner to suck small investors dry , hey they could levy a
5lack fine ,BIGGEST JOKE! we had not only a stock mkt scam but also an ipo scam wherein a lead manager and its staff
made lots of money in dubious valuations and biased allotments , i knew very well that uti was upto some mischif too ,luckily i
withdrew my us64 3 days before closure the fin min was certainly lax and that too knowledgebly the finman y sinham, has a
successful daughter who btw is also a fund manager for a foreign mutual fund investing in INDIA,!!!!! i leave u to deduce , i
even heard rumours that the most famous bihari politician had pumped crores during the rise in the mkts I THINK NOTHING
WILL CHANGE , ONE MORE JPC REPORT IN THE DUSTBIN!!!the system has to survive for political funding
Fri Dec 20 02:29:23 2002
Name::Ravi
Email:::ravingp@hotmail.com
Your Views::Poorest implementation of law and shedding off the responsibilities by officers and politicians. Responsibilities
needs to be fixed and guilty should be brought to justice in a shortest possible time ( time bound manner).
Fri Dec 20 02:36:45 2002
Name::indarajit tarafdar
Email:::indrajeet_tarafdar@rediffmail.com
Your Views::1) how qualified, educated, disciplined & non-criminal natured are our politicians themselves 2 pinpoint flaws in
others? 2)if our politicians r what they r, should they not be mindful of their own shame- lessness 1st, what with corruption, etal
tickling dn their own
Name:s?
Fri Dec 20 04:57:11 2002
Name::fedup
Email:::kuchnahihosaktahumaraydeska@hotmail.com
Your Views::corruption corruption!!! @highest level.. rediff shud carry on same kind of operation as tehelka did for criketers
and defence.I beleive that if tehelka was alive today they would have lifted the mask of hindutva/corruption from finance
ministry too. Hindutva ki aad main yeh log bharat ma se gaddari kar rahe hain.
Fri Dec 20 05:23:35 2002
Name::Chandru Narayan
Email:::chandrun@juno.com
Your Views:: India should kill two demons in our system, one is population control and the other is corruption. India is a country for crooks, by crooks and to crooks. Our inefficient and corrupt judiciary has created a atmosphere and cesspool for
corruption. The Politician, Policeman and Bureaucrat are all the pillars of corruption. Kill corruption save India. Jai Hind! Watch your Hind!
Fri Dec 20 08:17:45 2002
Name::s.hariharan
Email:::sharihh9@loxinfo.co.th
Your Views::The govt. is never at fault and the Minister is always above board. No blame, no accountability. As usual the MPs get together to the rescue of one of their kind just as when it comes to raising salaries. Dont forget sinha's contribution as a finance minister under Mr. chandrasekhar. He has the privilege of mortgaging gold to save default in payment which was brought about by him. He is incompetent and irresponsible, now he also lacks moral courage to own up.
Fri Dec 20 08:33:19 2002
Name::Arun
Email:::arun_vr@indiatimes.com
Your Views::Yes, The government should own the responsibility and ensure that such scams are eliminated. There is not point in taking measures after the scam has happened. The government should be very vigilant about all financial transactions
involving general public. I find this never occuring even in the near future. The government should be responsible for its citizens money. Just saying that minister is not involved and punishing someone else will not address the problem. Its a pity that the
finance minister did not have any inkling about such issues. Such people are better not to be in government.
Fri Dec 20 08:49:06 2002
Name::w j.noronha
Email:::winona2000@hotmail.com
Your Views::Why waste taxpayers money, when the people very well know that the commissions are just eyewash, and a way out to protect the criminals. Britishers looted the wealth, now it is the turn of the elected politicians to follow suit.
Fri Dec 20 09:22:20 2002
Name::n.das
Email:::nahumdas@rediffmail.com
Your Views::once again a probe report has come( better late than never).Thank God for some truth brought out to the surface. But again question remains the same,only report or some gain to the loosers? persons held responsible should be monetorily
penalised heavily like all their assets should be seized & some system should be evolved to stop the reccurence of such public looting openely.
Fri Dec 20 11:15:18 2002
Name::saroj padhy
Email:::sk_padhy1@rediffmail.com
Your Views::yes,upto large extent the govt. is responsible for this scam due to inactive of SEBI's officers in this regard.
Fri Dec 20 11:35:23 2002
Name::p chandra
Email:::thewholetruth@indiatimes.com
Your Views::Scams usually originate from the PMO's office with the Chief Honcho's implicit nod. Our election system compels the ruling party to fill its coffers to the brim when it is in power. This is how Harshad Mehta-a state sponsored bull-came into
being. The explicit impression that the emerging pattern created from the then press reports was that the Principal Secretary
instructs (often verbally over the phone) the Finance Secretary. The FM conveniently sees no evil, hears no Evil, speaks no
Evil. The classic example is that of the then FM. Lack of knowledge of such a scam brewing in the background is even much
more serious, unpardonable than play the sinister game of dont see-dont hear-dont speak principle, because there at least
loyalty to someone or some cause or to the party, mostly ruling, is implied. The Finance Secretary then pulls the threads mostly
through the RBI and then it percoates to the instituions concerned. No one dares oppose. Because it is coming from the top.
The awesome dearth of senior politicians & bureaucrats like Raja Saheb and Arun who preferred to quit rather than do as
mis-directed, and the attendant price, ensure scam after scam !!
Fri Dec 20 11:57:58 2002
Name::Suhas Dere
Email:::sdere@ptc.com
Your Views::Scams will always occur, however stringent may be the laws. The request to the govt is to act fast and "really" catch those responsible so that there is at least the consoling thingfor those who are affected by thiese scams.
Fri Dec 20 12:48:55 2002
Name::Dr.M.N.K.Nair
Email:::drmnknair@yahoo.com
Your Views::The inefficiency and incompetence of the regulatory agencies and non-indictment of the fraudulent and unscrupulous promoters have been really responsible for the stock market scam.As a non-resident investor who had to suffer a
loss of lakhs of rupees at the hands of these fraudsters and colluders(banks,brokers and agents),I am pained to note from experience that the regulatory agencies and department of company affairs do nothing to alleviate the sufferings of the affected
even after several reminders and letters of complaints.One at times wonders whether the agencies themselves serve as the agents of these fraudsters. How can one explain the absence of any punishment of hundreds of directors and promoters of the
so-called "vanished" companies after collecting hundreds of crores of investors' money??? Some of the
Name:s of companies that vanished after collecting enormous sums from me are Pal Refinery india Ltd, Beta Lact laboratories Ltd, Ind Euro Pharma
Ltd, Alliance Fiscal Management Services, India Castor Oils Ltd, Orind Steels Ltd,White Diamonds Ltd,etc,etc. The government and authorities have lot of explaining to do to millions of investors like me who have been defrauded.
Fri Dec 20 20:55:03 2002
Name::ajatshatru singh
Email:::ajatshatru_s@rediffmail.com
Your Views::the government laxity indeed is responsible for stock scams. The BJP led NDA government and previous govts too have been targetting common mn only while the big bulls remain untouched. They are targetted only when some big scam
surfaces. ajatshatru singh
Sat Dec 21 01:41:17 2002
Name::RANJIT SINGH
Email:::betterindia@aol.com
Your Views::In everything dark, scams or even, Veerrappan, the final culprit is the government. You canot build a good nation without first building a good government. Three tiers of the government-executive,secretarits and cabinet-need to be regulated
by rules and instant impeachment for violations. Ranjit Singh Mg. Editor, The Better India(Monthly) New York
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