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

Countrywide protest by gig workers puts spotlight on algorithmic exploitation

By A Representative   A nationwide protest led largely by women gig and platform workers was held across several states on February 3, with the Gig & Platform Service Workers Union (GIPSWU) claiming the mobilisation as a success and a strong assertion of workers’ rights against what it described as widespread exploitation by digital platform companies. Demonstrations took place in Delhi, Rajasthan, Karnataka, Maharashtra and other states, covering major cities including New Delhi, Jaipur, Bengaluru and Mumbai, along with multiple districts across the country.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

CFA flags ‘welfare retreat’ in Union Budget 2026–27, alleges corporate bias

By Jag Jivan  The advocacy group Centre for Financial Accountability (CFA) has sharply criticised the Union Budget 2026–27 , calling it a “budget sans kartavya” that weakens public welfare while favouring private corporations, even as inequality, climate risks and social distress deepen across the country.

'Gandhi Talks': Cinema that dares to be quiet, where music, image and silence speak

By Vikas Meshram   In today’s digital age, where reels and short videos dominate attention spans, watching a silent film for over two hours feels almost like an act of resistance. Directed by Kishor Pandurang Belekar, “Gandhi Talks” is a bold cinematic experiment that turns silence into language and wordlessness into a powerful storytelling device. The film is not mere entertainment; it is an experience that pushes the viewer inward, compelling reflection on life, values, and society.

Budget 2026 focuses on pharma and medical tourism, overlooks public health needs: JSAI

By A Representative   Jan Swasthya Abhiyan India (JSAI) has criticised the Union Budget 2026, stating that it overlooks core public health needs while prioritising the pharmaceutical industry, private healthcare, medical tourism, public-private partnerships, and exports related to AYUSH systems. In a press note issued from New Delhi, the public health network said that primary healthcare services and public health infrastructure continue to remain underfunded despite repeated policy assurances.

The Epstein shock, global power games and India’s foreign policy dilemma

By Vidya Bhushan Rawat*  The “Epstein” tsunami has jolted establishments everywhere. Politicians, bureaucrats, billionaires, celebrities, intellectuals, academics, religious gurus, and preachers—all appear to be under scrutiny, even dismantled. At first glance, it may seem like a story cutting across left, right, centre, Democrats, Republicans, socialists, capitalists—every label one can think of. Much of it, of course, is gossip, as people seek solace in the possible inclusion of names they personally dislike. 

Gujarat No 1 in Govt of India pushed report? Not in labour, infrastructure, economy

By Rajiv Shah A report by a top Delhi-based think tank, National Council of Applied Economic Research (NCAER), prepared under the direct leadership of Amitabh Kant, ex-secretary, Department of Industrial Policy and Promotion (DIPP), Government of India, has claims that Gujarat ranks No 1 in the NCAER State Investment Potential Index (N-SIPI), though there is a dig. N-SIPI has been divided into two separate indices. The first one includes five “pillars” based on which the index has been arrived it. These pillars are: labour, infrastructure, economic conditions, political stability and governance, and perceptions of a good business climate. It is called N-SIPI 21, as it includes a survey of 21 states out of 29.

Gujarat agate worker, who fought against bondage, died of silicosis, won compensation

Raju Parmar By Jagdish Patel* This is about an agate worker of Khambhat in Central Gujarat. Born in a Vankar family, Raju Parmar first visited our weekly OPD clinic in Shakarpur on March 4, 2009. Aged 45 then, he was assigned OPD No 199/03/2009. He was referred to the Cardiac Care Centre, Khambhat, to get chest X-ray free of charge. Accordingly, he got it done and submitted his report. At that time he was working in an agate crushing unit of one Kishan Bhil.

Planning failures? Mysuru’s traditional water networks decline as city expands

By Prajna Kumaraswamy, Mansee Bal Bhargava   The tropical land–water-scape of India shapes every settlement through lakes, ponds, wetlands, and rivers. Mysuru (Mysore) is a city profoundly shaped by both natural and humanly constructed water systems. For generations, it has carried a collective identity tied to the seasonal rhythms of the monsoon, the life-giving presence of the Cauvery and Kabini rivers , and the intricate network of lakes and ponds that dot the cityscape. Water transcends being merely a resource; it is part of collective memory, embedded in place names, agricultural heritage, and the very land beneath our feet. In an era of rapid urbanization and climate-induced land–water transformations, understanding this profound relationship with the land–water-scape is strategic for sustainability, resilience, and even survival.