Skip to main content

What's Rs 90 lakh worth for top Rly Board post? A babu 'collected' Rs 50 lakh for that!

By Rathin Das

“Just Rs 90 lakhs?! That’s not a big price to get such a high post in the Railway Board”, many in bureaucracy would scream. They know Indian republic has a long history of having price tags for several posts that involve interactions with contractors -- first awarding them projects and later clearing their inflated bills, to say the least. The payment made for procuring the post is recovered through kickbacks received from contractors and suppliers, the beneficiaries of the projects at the cost of the exchequer.
No questions are asked about the source and destination of the slush money as the bureaucracy-contractor nexus has for long perfected the system of ‘regulating’ the flow of public money back to the coffers of the officers. In this case of Rs 90 lakhs paid to the nephew of the Railway Minister for securing the coveted post, the officer must have relied on the contractors who would be returned the favour by way of speedy payments of over-rated bills.
But the business-savvy state of Gujarat has one unique example of an officer borrowing from industry owners for paying to get a far-away posting that was of no consequence to their business interests.
A Gujarat cadre IAS officer in the early 1990s had sought “loans” totalling Rs 50 lakhs from industrialists in the district where he was the collector.
Towards the end of his stint as collector, the IAS officer became entitled for a deputation to a posting in his native Andhra Pradesh. He told the small and medium industry owners in the district that he “required” Rs 50 lakhs to get the coveted post of chairman in the Vishakhapatnam Port Trust, the most important port in Andhra Pradesh.
The IAS officer had only asked for “loans” from the industry owners -- Rs three lakhs to Rs five lakhs each -- in order to raise the money he “required” to get the post of Chairman in the Vizag Port Trust.
Knowing fully what a “loan” to an IAS officer actually means, the small and medium industry owners had coughed up some money each as per their individual capacities.
Though the industry owners had no stake in the IAS officer becoming the Chairman of the Vizag Port Trust, they had no option to say no to the “loan” request as they knew he would be back in Gujarat after few years, definitely at a higher post in the State Secretariat.
Despite going to his native Andhra Pradesh with the Rs 50 lakhs collected as “loan” from the industrialists in Bharuch, the IAS officer could become only the Deputy Chairman of the Vizag Port Trust.
But the industrialists in Bharuch had a pleasant surprise as the IAS officer had actually refunded about Rs 45 lakhs within a year-and-half of going to Vizag, though only as the Deputy Chairman of the port there.
Two decades later, a vigilance inquiry found him guilty of embezzlement during his tenure at the Vishakhapatnam Port Trust (VPT) following which he was suspended from service.
But the irony of the Indian system is that no one ever asked who had demanded the Rs 50 lakhs the IAS officer “required” to get the coveted post at the Vishakhapatnam Port Trust.Guj IAS took loan to be port trust chief.
---
Rathin Das is a senior journalist, based in Ahmedabad

Comments

TRENDING

Civil society at a crossroads: Service delivery vs. rights in the fight for social change

Counterview News   In the latest episode of the podcast Unmute , hosts Gagan Sethi and Minar Pimple convened a profound conversation with two veteran development practitioners to dissect a persistent tension within civil society: the perceived divide between service delivery and the struggle for rights. The episode, titled "Beyond Service Delivery: Civil Society, Rights, and the Politics of Social Change," featured Apoorva Oza , a development practitioner with decades of experience in rural development and institution-building, and Professor Dipa Sinha , a development economist known for her work on food, nutrition, gender, and social policy.

Bangkok IMF-World Bank meetings: New reports put India's debt, climate, accountability crisis in focus

Counterview News   As the World Bank and International Monetary Fund (IMF) concluded their Annual Meetings in Bangkok this week, civil society groups and policy experts outside the official proceedings released two critical documents challenging the institutions' legacy and prescriptions for Asia, calling for a fundamental overhaul of the global financial architecture.

European banks accused of coal double standard after shunning Adani’s Galilee mine in Australia

By Rajiv Shah    European banks that helped shut down Adani ’s Galilee Basin coal frontier in Australia a decade ago are now bankrolling a far larger coal expansion just 150 kilometres away, according to a new report from Reclaim Finance and partner NGOs. The study , "Coal Hypocrisy: European Banks’ Double Standard on Thermal and Metallurgical Coal in Australia", finds that 19 European banks provided US$30.3 billion to companies planning metallurgical coal expansion in Queensland’s Bowen Basin between 2021 and 2025, out of a total of US$105.9 billion from international banks.