Friday February 23, 2018
Home Opinion Indian Nation...

Indian National Congress then and now: The dominance of foreign masters

0
//
408
Republish
Reprint

 download

By Rukma Singh

The birth of the Congress party in 1885 has been one of the most momentous events in the political history of India. It played a massive role in Indian independence by being the first embodiment of nationalism at an all-India level. As such, the Indian National Congress became synonymous to the nationalist processes in India. Indian historian Bipin Chandra rightly argues that the foundation of the Congress was the natural outcome of the political awareness and work done by various bodies in the years between 1850 and 1885.

The myth

A long-lasting myth surrounding the Indian National Congress is the myth of the “safety valve”. A.O. Hume and other Britishers believed that the educated Indians may become leaders of the Indian public and organize a rebellion against the government. To handle this, the British Government itself decided to provide a platform to people to channel their opposition. The myth, however, was later busted by researchers. It is important to note that even though the safety valve theory isn’t entirely correct, Gokhale recognized and accepted the contribution of British. “No Indian could have started the Indian National Congress…if an Indian had come forward to start such a movement embracing all Indians, the officials in India would not have allowed the movement to come into existence,” argued Gokhale.

Earliest nation­alists cooperated with Hume because they did not want to encourage official hostility at the onset itself.

The Post-Independence Congress

From 1951 until his death in 1964, Jawaharlal Nehru, the paramount leader of the Indian independence movement under the tutelage of Mahatma Gandhi dominated the Congress Party, which won overwhelming victories in the elections of 1951–52, 1957, and 1962. It was only in 1964 that the future of Congress came into question following the death of Nehru. Kamaraj, the President of the All India Congress Committee, brought Lal Bahadur Shastri to power, who eventually died under mysterious circumstances in 1966. The next Prime Minister was Indira Gandhi, appointed by the Syndicate (group of senior Congress partymembers) so that they could have an upper edge in the party by directing the young prime minister. However, that plan failed and Indira Gandhi’s lack of dependence on the Syndicate led to her expulsion from the party. Undeterred, she went ahead and created another party which won with a massive majority in 1971, due to the significant support from the lower strata of the society, behind the garb of progressive socialism.

Downfall

One of the first instances of the downfall of the Congress party came about in 1975, with complaints about increasing authoritarianism gaining impetus. What followed was the declaration of emergency, resulting in the party’s complete loss of support. The 19 months of emergency saw widespread oppression and abuse of power by Gandhi’s unelected younger son, Sanjay Gandhi and his close associates. This period of oppression ended when on 23 January 1977, Indira Gandhi called for fresh elections to the Lok Sabha and released all political prisoners. Not surprisingly, the new Congress with 153 seats lost to the Janata party that had a landslide victory with 295 seats. But Indira Gandhi continued the fight by forming a new faction called Congress I (Indira) to signify the independence of the party. Over the next year, her party attracted enough members to become a significant opposition party. In 1980, Congress (I) won with a massive majority and was declared as the real Indian National Congress by the National Election Commission.

In 1984,the whole country was in a state of shock when Indira Gandhi was assassinated by her own Sikh bodyguards, expressing their anger over her decision to allow the Indian Army to establish control over the Golden Temple. The 1984 anti Sikh riots occurred after her death, marking the loss of over 30,000 lives.

The Rajiv Gandhi period

Following  the assassination, Rajiv Gandhi, upon being made the Prime Minister, led the party to a massive victory with 401 seats. Gandhi was regarded as a nonabrasive person who consulted other party members and refrained from hasty decisions.The Bofors Scam shattered his image as an honest politician; however he was posthumously cleared over this allegation in 2004. On 21 May 1991, Gandhi was killed by a suicide bomber associated with the Tamil Tigers.

The entry of Sonia Gandhi

Following the lowest ever seat tally of Congress in 1998, party members requested Sonia Gandhi-widow of Rajiv Gandhi, who had earlier refrained from participating in politics, to enter the party. Angered by the inclusion of a Non-Indian member, a group of members, led by Sharad Pawar went ahead and formed the National Congress Party (NCP). Sonia Gandhi’s leadership failed to have an impact initially. However, as time passed, the wise campaigning targeting social inclusion and common man’s benefit coupled with the formation of coalition government (forming the United Progressive Alliance), resulted in the massive victory of UPA government.

By the 2014 Lok Sabha elections, however, the party had lost much of its popular support, majorly because of several years of poor economic conditions in the country and growing concerns over a series of corruption scandals including 2G Spectrum Scam and Coal Scam.

The present

The Indian National Congress saw a massive defeat in the 2014 parliamentary election. For more than three-quarters of a century, it dominated the landscape of Indian politics. But this changed significantly after Congress managed to win just 44 of 543 Lok Sabha seats, accompanied by a lack of strong base in any part of the country. Political Scientist, Zoya Hassan analyzes the reasons behind the momentous downfall, and what comes across as the main influencing factor is the dominating organizational weaknesses. Under Indira Gandhi, Congress moved on from being a dominant democratic party with a formidable organization, distributing patronage in exchange of electoral support, to a family centred political organization. Another basic problem emerges from the lack of new, able and popular leaders. The huge dependence and trust put in the Gandhis might not necessarily work for the betterment of the party, till the time new voices aren’t given space.  An evidence has been given by Sanjay Baru in his book ‘The Accidental Prime Minister: The Making and Unmaking of Manmohan Singh’, where points out that the Prime Minister let Rahul Gandhi take credit for NREGA and UPA winning a second term. When the idea of rural employment guarantee scheme was floated, it was Manmohan Singh who was in favour in implementing this programme at the national level but when the program started, there was a Gandhi family stooge who came up to Baru with a request to release a statement that said that it was Rahul Gandhi who urged Manmohan Singh to extend the scope of NREGA to all the 500-odd rural districts in the country.

For Congress to regain its credibility, the need of the hour is the re-structuring of social democratic values of welfare and pluralism. What is essential is to work on the adoption of a suitable platform of revival, one which does not depend only and entirely on the Gandhi family.

 

Click here for reuse options!
Copyright 2015 NewsGram

Next Story

PNB Fraud Fully Exposes the Malicious Intent Of Nirav Modi

For the past seven years, Nirav Modi’s three firms-Diamond R Us, Solar Exports and Stellar Diamonds-were in the process of procuring the LoU's from the Punjab National Bank (PNB)

0
//
21
Nirav Modi's stamped his name in India’s top corporates with growing global prestige with his fame and affluence.
Nirav Modi's stamped his name in India’s top corporates with growing global prestige with his fame and affluence. Facebook
  • Nirav Modi is India’s one of the better- known diamantaires
  • Since 2013, Nirav Modi has been a regular on the lists of rich and famous Indians
  • Nirav Modi and his firms exploited the loopholes in the banking system to the fullest by seeking letters of undertaking

Who Is Nirav Modi

Nirav Modi is India’s one of the better- known diamantaires. Hewas born in a diamond-dealing family and spent his childhood in Antwerp, Belgium. At an early age of 19, he set sail for Mumbai. After spending nine years down the lane, he came up with his own company named Firestar Diamond Ltd. Initially, Nirav Modi started with selling loose stones and employed the only handful of people. But after attaining staggering success in his business till last year, the number of employees was more than two thousand.

As per the Firestar Group figures, the company’s revenue jumped over three years from 103 billion rupees to some 147 billion rupees by the 2016-17 fiscal year. Since 2013, Nirav Modi has been a regular on the lists of rich and famous Indians. According to Forbes magazine rankings, Nirav Modi’s net worth ranges to some $1.8 billion which itself explains the lavish lifestyle of the business tycoon.

Also Read: Biggest Bank Frauds Which Shook The Indian Economy

Nirav Modi’s stamped his name in India’s top corporates with growing global prestige with his fame and affluence. The Bollywood star and former Miss World, Priyanka Chopra also adorned with Modi’s jewels. From Hollywood’s red carpets to the Bollywood awards, his diamonds have sparkled on the bodies of actors and models like Kate Winslet, Dakota Johnson and Priyanka Chopra.

Last month, Nirav Modi was spotted at the World Economic Forum in Davos. A group photograph with Prime Minister Narendra Modi in the foreground and Nirav Modi in between rows of Indian business leaders have come under fire from the Congress party and notably carried out by the Indian media. Some political parties have taken a direct shot at Prime Minister for facilitating the run of Nirav Modi. In one of its tweet, Rahul Gandhi blamed Narendra Modi for this blunder.

Nirav Modi and his firms exploited the loopholes in the banking system to the fullest by seeking letters of undertaking (LOU) and thus raised credit from foreign banks to pay to its merchants. In simple words, LOU is a bank guarantee issued for overseas import payments. The scandal is termed as India’s biggest banking scams in ages.

For the past seven years, Nirav Modi’s three firms-Diamond R Us, Solar Exports and Stellar Diamonds-were in the process of procuring the LOU’s from the Punjab National Bank (PNB). Through these bank guarantees, Nirav Modi was able to raise the short-term loans from foreign branches of Indian banks to pay to its suppliers of raw material for his business.

A criminal complaint with the CBI was filed on January 29 accusing Nirav Modi and others of defrauding the bank and causing it a loss of Rs. 280 crore.
A criminal complaint with the CBI was filed on January 29 accusing Nirav Modi and others of defrauding the bank and causing it a loss of Rs. 280 crore. Wikimedia Commons

Due to the recent setback to the Punjab National Bank, its shares closed 2% lower at Rs. 125.65 against the previous day’s closing on BSE.

The CBI (Central Bureau of Investigation) booked the billionaire jewellery designer on January 31, along with his wife Ami, brother Nishal and business partner Mehul Choksi. The Nirav Modi’s wife is a U.S. citizen and said to be equally involved in the billion dollar fraud. The charges levelled against them were of allegedly cheating state-run Punjab National Bank to the tune of Rs. 280 crore. Within a fortnight of the first complaint by the Punjab National Bank, CBI was taken into the loop.

Also Read: 16 Indian origin people indicted for running a scam in the United States

Nirav Modi and his brother Nishal, who is a Belgian citizen, left India on January 1. However, it is still not known if they travelled together or separately. Meanwhile, Nirav Modi’s wife Ami, who is a US citizen, left India on January 6. Following the footsteps of his business associates, Mehul Choksi, the promoter of Gitanjali jewellery chain, left on January 4, the officials said.

After the exposure of the scam, CBI and the Enforcement Directorate moved to the External Affairs Ministry in order to get revoked the passports of Nirav Modi and his associates. Hence, the passports of Nirav Modi and Mehul Choksi got suspended for four weeks.

The last nail is struck by CBI as it has asked Interpol for help to arrest celebrity jeweller Nirav Modi, who is being investigated for one of the biggest bank frauds of the country.

Due to the recent setback to the Punjab National Bank, its shares closed 2% lower at Rs. 125.65 against the previous day's closing on BSE.
Due to the recent setback to the Punjab National Bank, its shares closed 2% lower at Rs. 125.65 against the previous day’s closing on BSE. Wikimedia Commons

The federal investigative agency and the law enforcement officials raided his jewellery stores and other businesses in Mumbai and New Delhi. However, Nirav Modi’s flagship company, Firestar Diamond, has denied any involvement in the case.

Also Read: 5 scams that rocked India in 2015

After this scam, Nirav Modi’s biggest rivals like Tanishq and Gitanjali Gems must be having a heave of sigh in terms of competition. As per the NDTV’s report, Nirav Modi is holed up at New York’s JW Marriott Essex House at 160 Central Park South, which includes both a hotel and apartments. The place is situated in a premier location overlooking New York’s well known Central Park.

In the following paragraph, thePNB’s swoop of Rs. 11,300 Crore is explained as it is:

  • There is a system of bank guarantee called a letter of undertaking (LOU). Under this a bank allows its customer to raise money from another Indian bank’s foreign branch in the form of a short-term credit. So basically, the LOU serves the purpose of a bank guarantee.
  • In order to avail LOU, the customer or organization is expected to pay margin money to the LOU issuing bank and hence the credit limit is granted. But in the Nirav Modi’s fraud case, he didn’t pay up any margin money and on the top of that, no credit limit was set up for him.
  • On a regular basis, Nirav Modi managed to pay to its suppliers of rough stones for his three firms. The money was paid through the loans by banks including Axis Bank, and Allahabad Bank. It was done by Nirav Modi’s firms on showing the letters of undertakings issued by the Punjab National Bank.
  • Early this year, Punjab National Bank discovered that there was no official record of such letters of the undertaking before reporting the matter to the CBI.
  • In this case, Nirav Modi and his firms were supposed to repay the loans but till now, all these loans have allegedly been rolled over for want of funds. Incidentally, when the borrower fails to make the repayment, the bank which has issued the LOU is constrained to honour the commitments on the behalf of its customers.
  • On February 15, the RBI (Reserve Bank of India), the central finance body of India reportedly directed the Punjab National Bank to pay all these banks that gave loans to Modi’s firm on the basis of guarantees issued by the state lender.
  • So virtually, Indian bank’s foreign branches were making payments on behalf of Nirav Modi’s to its suppliers in the form of loans.
  • The hell broke out in January when Modi’s firm requested further LOUs for paying the overseas suppliers. The bank officials straightforwardly refused to entertain the request on the ground that Modi’s firm needs to keep 100% collateral for the same. On this, Modi’s firm argued that no such money was kept ‘on margin’ in the past either and this led to an investigation by the bank officials who scanned the records only to discover that there was no trace of any such transaction. Lately, it was known that the guarantees/ undertakings were issued by bypassing the rules in collusion with some Punjab National Bank
  • The violation of the Punjab National Bank’s end was a too glaring blunder to ignore. Hence, a criminal complaint with the CBI was filed on January 29 accusing Nirav Modi and others of defrauding the bank and causing it a loss of Rs. 280 crore.The complaint included Nirav Modi and Mehul Choksi, managing director of Gitanjali Gems. But later on, Nirav Modi’s brother and his wife were also found to be included in this startling scam.