A 1000 crore scam with fraudulent withdrawals on the pretext of fictitious livestock
A nexus of bureaucrats, elected officials, and businessmen
All of it resulted in 500 convictions, including that of RJD supremo Lalu Prasad Yadav
India faces many challenges. Corruption, however, tops the list. It has proved to be an impenetrable loop in our system which continues to adversely affect the country’s economy and the credibility of our government agencies. This loop has a history of holding our economy back from reaching new heights and also stunted the country’s development process.
Let’s turn the pages of history to not long before 23rd December 2017, when RJD supremo Lalu Prasad Yadav was convicted by a special CBI court in Ranchi for the Fodder Scam. In a quick followup he had tweeted:
Had people like Nelson Mandela, Martin Luther King, Baba Saheb Ambedkar failed in their efforts, history would have treated them as villains. They still are villains for the biased, racist and caste-ist minds. No one should expect any different treatment.
Fodder scam, a corruption scandal, was next to a theft that spanned over twenty years. The embezzlement amounts to over ₹1000 crore from the government treasury in Bihar. It involved a number of administrative and elected officials from multiple departments. A scam of extremely high duration and magnitude, it proved the existence of a nexus between bureaucrats, politicians and businessmen. The Fodder Scam became a prime example of the ‘mafia raj’ that has penetrated the state-run economic sectors of the country.
It worked like a conspiracy where high-level politicians, bureaucrats and businessmen teamed up to fill their pockets with public money. Several fraudulent withdrawals from the Bihar treasury were made, on the pretext of procurement of fodder, medicines and animal husbandry for vast herds of fictitious livestock. It was done by forging several documents and fabricating allotment letters for making payment to suppliers for ‘non-supply or short supply’ of feed/fodder/medicines. Basically, huge withdrawals for the supply that never existed.
Suppliers, in connivance with officials enjoying political patronage, submitted forged documents and produced fake bills to claim reimbursements from the animal husbandry department.
They (suppliers) mentioned registration numbers of two-wheelers saying that cattle including buffaloes were transported over hundreds of kilometres by those vehicles.
Bills of 500 kg of mustard oil worth Rs 15 lakh meant to polish the horns of buffaloes were submitted and cleared.
Pigs were shown purchased from Ludhiana by animal husbandry officer RK Rana – who went on to become a Member of Parliament on RJD’s ticket. Rana claimed that during transportation of pigs from Punjab to Bihar, half of the pigs died at Varanasi in Uttar Pradesh.
All these were bogus claims to withdraw huge amounts of public money.
For example, when the Deputy Commissioner of Jamshedpur district administration received an information that huge fraudulent withdrawal of Government money has been made in budget head 2403 of Animal Husbandry Department in the period 1991 to 1996, he got it inquired by a senior officer. It was found that in the said head 2403 Animal Husbandry, withdrawal has been made from Jamshedpur Treasury even more than the whole budget of Bihar State in the head.
This was a just a small part of the big picture, which once revealed, convicted more than 500 people.
How was the scam exposed?
Ravi S Jha, an Indian journalist, who was working with the Asian Age, then in Calcutta, was the first to name Bihar Chief Minister Lalu Prasad Yadav of having implicit involvement in the scam. He not only found involvement of Bihar Government machinery in the scam but even mentioned how earlier governments too were flouting norms to make money illegally.
Many people believe the Fodder Scam was unearthed, for the first time, in 1996. However, Bihar Veterinary Association had already exposed the Animal Husbandry Mafia in 1985 through a Press Conference. Though in 1990, the executive committee of Bihar Veterinary Association was modified, and Dr Dinneshwar Prasad Sharma was made the General Secretary of BVA. The mafia now had control over the association.
At that point, Dr Dharmendra Sinha and Dr Biresh Prasad Sinha (Ex-officers of BVA) had started collecting information against this whole scandal. They had shared their information with Sushil Kumar Modi who initiated the whole episode of exposure after it was broken out by VS Dubey.
Who is VS Dubey?
VS Dubey was the Finance Commissioner, who came across some financial irregularities of massive scale. On 20th January 1996, he made an enquiry of the excessive withdrawals by Animal Husbandry Department from Ranchi treasury. The enquiry revealed a horrific whole scale loot of government money drawn through forged documents.
On 27th January 1996, Amit Khare, the Deputy Commissioner of West Singhbhum conducted raids (on direction from VS Dubey) on the offices of Animal Husbandry Department in the town of Chaibasa. The documents seized by him indicated a large-scale embezzlement by an organized mafia of officials and businessmen. Ravi S Jha’s work was based on the evidence found in Chaibasa.
CBI comes into the picture
The state police was probing the irregularities. However, it is accountable to the state administration and hence, there were fears that the probe committee would not investigate the case properly. People demanded the case be transferred to Central Bureau of Investigation (CBI) which is under federal rather than state jurisdiction.
Many members of the probe committee themselves faced allegations of being involved in the scam. A PIL was filed in the Supreme Court in March 1996, based on the directions issued by the SC, the Patna High Court ordered that the case is handed over to the CBI.
In the span of over two decades, the CBI registered 53 cases related to the Fodder Scam. More than 500 people have been convicted by various courts, including Lalu Prasad Yadav.
Aftermath and Impact
The Fodder scam has become a symbol of bureaucratic corruption and criminalization of politics. The investigation and prosecution are said to have been guided by political motive. Many lower level staffs who did not have any connection to the scam have been crucified in the process. Many families are left without any earning. And when the Lok Sabha debated for a complete session as ‘Lalu Prasad Yadav’ an official agenda, how can we look forward to a system that has set its priorities right?
Fodder scam case verdict: Lalu Prasad Yadav held guilty, Jagannath Mishra acquitted.
How so very convenient! This is what happens when institutions are systematically subverted and justice fornicates with politics. 😣https://t.co/wkDYpUAMNz via @indiatoday