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IPL: The Dirty Picture

Posted by Admin on May 30, 2012

http://cricket.yahoo.com/news/ipl–the-dirty-picture-.html

By Bhavna Vij-Aurora, Dhiraj Nayyar and Shantanu Guha Ray | India Today – Mon 28 May, 2012 1:01 PM IST

By Bhavna Vij-Aurora, Dhiraj Nayyar and Shantanu Guha Ray

A late-night bust-up involving charges of molestation and assault at a hotel suite in Delhi booked in the name of Indian Premier League (IPL) franchise Deccan Chargers on May 18. An early morning Income Tax raid at the offices of Pune Warriors and Royal Challengers Bangalore on May 23 following a TV sting operation in which five fringe players were caught striking deals on spot-fixing and switching teams for more money. A brawl at Wankhede Stadium leading to a five-year ban by the Mumbai Cricket Association on Shah Rukh Khan on May 16. It was a week from hell for IPL. And the week promised to stretch into a long year.

Around 6.30 p.m. on May 22, Zohal Hamid, 27, was giving yet another live interview on her now famous charge of molestation by Royal Challengers Bangalore (RCB) player Luke Pomersbach. The incident acquired bizarre momentum, especially after her ‘fiance’ Sahil Peerzada, 33, was hit by Pomersbach and she turned out to be close to a defence agent. India Today was present at the plush farmhouse of her “rakhi” brother Abhishek Verma, an accused in the naval war room leak and under investigation for his suspected role in defence deals. Sahil made a dramatic entry while she was on camera. “How dare you speak to the media without my permission?” he asked. Zohal placated him and they then drove off in Verma’s Hyundai Sonata. Both she and Sahil then went incommunicado. Clearly, they had received instructions to go quiet. Some deal had been struck to cover up an intoxication-fuelled, unscripted drama that threatened to blow apart the nocturnal mix of sex and money that plays behind the televised scenes of IPL. Sahil and Zohal met their lawyer Rajneesh Chopra who had worked out a compromise with RCB owner Sidhartha Mallya, who had so charmingly described Zohal’s allegations against Pomerbasch as a “load of f…..g s..t” in a tweet. On May 22, Zohal agreed to withdraw her case against Pomersbach and drop the defamation threat against Mallya, who has not even deigned to remove the offending tweets from his account-another said “what this girl is doing is idiotic”. On May 23, though, he tweeted, “So glad all charges have been dropped and Luke can return Down Under a free man!”, followed by “Oh and btw, I know ppl can be cynical, so just so u know, the settlement wasn’t financial in any way!”

These shenanigans took TV cameras into the bedroom, the last thing IPL wanted as its oversold carnival becomes a sordid circus. The manufactured silence was designed to avoid some basic questions:

  • Why did Deccan Chargers book a Rs 20,000-a-day suite for Sahil at ITC Maurya?
  • What is Sahil’s connection, if any, with cricket and IPL?
  • What is Zohal’s real link with Sahil? She claims he is her “fiance”. Sahil is a trifle hesitant about the honour.
  • Why was Zohal sleeping in Sahil’s suite if she was not booked there?
  • Why were two men, Miraj and Moin, sleeping in Sahil’s room?
  • Why was RCB hosting an after-party despite an IPL ban on them in 2010?

The mystery became more mysterious with Verma’s involvement. His former New York-based business partner and lawyer C. Edmonds Allen claims that Zohal was an employee of Ganton Indian Private Limited, and that he recommended her for a visa to visit India on Verma’s request last year. Allen is the president of Ganton, which he claimed he set up to handle $205 million (Rs 1,127 crore) made by Verma through arms deals and lobbying for defence firms. Verma denies any link with Ganton and claims that Zohal too has nothing to do with Ganton. He says “my wife Anca Neacsu is best friends with Zohal” and recommended her for an Indian visa through Allen.

THE BOOKIE UNDERBELLY

Born in Afghanistan to an Afghan father and an Iranian mother, Zohal’s family migrated to US in the late 1980s. Now an American citizen, she works for a cosmetics company in New York as a sales manager. She did part of her schooling in India, where she picked up conversational though accented Hindi. She went to Rutgers University in New York. After watching her first IPL match on May 17, goes her story, she landed at the RCB party and in the room booked by Deccan Chargers at ITC Maurya. Every answer begs a further question.

But Rajiv Shukla, who took over as the IPL commissioner in September 2011 and is also a Union minister, has no answers, except an evasive one. “I am the IPL commissioner, not police commissioner. I have nothing to do with what is happening in the hotel room.” The fact that he mentioned “police commissioner” involuntarily speaks for itself. He believes media is exaggerating the problems of the league by highlighting stray off-field incidents. He does not deny knowing Sahil Peerzada. “He is the son of a Congressman,” he says. Sahil’s father, Peerzada Ghulam Mohammed, who died in 1994 at the age of 52, was a ticketing agent at the Sopore (J&K) bus stand in the 1970s, and went on to become a junior-level Congress leader. The family migrated to Mumbai in 1992.

Sahil’s brother, Feroze, says he has a real estate business in Mumbai, as well as two Kashmir handicrafts showrooms at the Leela in Bangalore and near Pavilion Mall in Kuala Lumpur. But Sahil’s reputation has been made in bedrooms rather than boardrooms. He is a serial dater of semi-famous women such as TV actors Shama Sikander and Gauhar Khan. Deccan Chargers is silent about why they rented such an expensive suite for him. Manjula Harpanahalli, media coordinator for Deccan Chargers, told India Today that they had no comments to offer. Repeated calls and text messages to E. Venkatram Reddy, director (operations), Deccan Chargers, went unanswered.

Investigating agencies are silent but taking a keen interest in the events. They have been busy. There has long been a suspicion that IPL is a breeding ground for bookies. Days before the start of the tournament, CID officers of Mumbai Police traced a conference of bookies from all over India huddled inside a five-star hotel room in Mumbai to plan their strategy: Essentially, to cooperate in the milking of those who like a flutter.

On May 17, when Chennai Super Kings was taking on Kings XI Punjab, Arun Chavan, head of Mumbai Police’s Property Cell, arrested two well-known bookies from a Lokhandwala flat. Devendra Kothari, 42, and Sonu Jalan, 30, were taking bets on the crucial match. Both were arrested immediately and 20 mobile handsets, a dozen SIM cards, two laptops, two voice recorders and an LCD T recovered. They led the police to another bookie, Mohammad Feroze Ansari, 38, from Nagpada in Mumbai. On May 19, the police arrested him too. The probe has now moved to Delhi. A team from Mumbai Police left for Delhi on May 21. Their goal: Check the truth in Kothari’s claim that he paid Rs 10 crore to a Sri Lankan cricketer to fix a one-day international match in 2006. “We cannot reveal the name of the Sri Lankan player. Investigations are still on,” said Mumbai Additional Commissioner of Police Vishwas Nangre-Patil.

In Delhi, the police confirmed that Kothari and Jalan were part of a global betting racket and among 170 suspects scheduled to visit Sri Lanka to fix matches. “There was to be a meeting in Colombo in anticipation of the fourth T20 World Cup which will take place in Sri Lanka. But it was cancelled,” says Brijesh Kumar Gupta, Delhi’s police commissioner. The police’s suspicions about a Colombo meeting were confirmed when a woman they picked up on May 19 from Delhi for possessing cocaine confessed to her involvement in the betting racket and said she was to travel to Colombo. On May 24, Delhi Police busted a betting racket in west Delhi, unearthing a mini-telephone exchange comprising 113 lines used for transmitting information about rates to over 300 betting syndicates across India.

India’s betting laws date back to the Public Gambling Act of 1867. Bail, therefore, is guaranteed for a paltry Rs 100 and allows bookies to get free within days of their arrest. No one has bothered to change this. “There’s very little time for questioning. And rarely are the big fish netted because the bookie chain is inordinately long,” says Gupta. This year alone, Delhi Police conducted more than 75 raids on bookies in Delhi and arrested over 100 people placing bets on IPL, the highest since the tournament started four years ago. The core problem hampering investigations is that there is no complaint, says Gupta.

ULTIMATE SECRET SOCIETY

Cricket is hardly the primary activity in IPL. The large, growing and dark circle around the field includes a secret society of franchise owners, pretty party girls and men of unknown means. Presiding over this is the Board of Control for Cricket in India (BCCI), which has ensured lack of transparency. BCCI is a registered society completely autonomous from the Government. It only started paying income tax in 2007 after authorities decided that it wasn’t simply a charitable organisation “promoting the sport of cricket”. In the effort to become successful, IPL has cut corners. Interpol wanted to investigate the bookie phenomenon and and asked for Rs 90 crore as expenses, just as it had asked FIFA when it set out to investigate football sleaze. FIFA paid. International Cricket Council (ICC) President Sharad Pawar refused. Very conveniently, ICC’s Anti Corruption Unit was hired. “If ICC had hired Interpol, cricket’s cleansing process would have begun. But that did not happen,” says Union Sports Minister Ajay Maken.

In 2011, IPL had hit a ratings low. A new model was sought to be created, as highlighted in broadcaster Set Max’s ads which encouraged viewers to watch the game on the ground. Rajiv Shukla says that the average gate receipts for the 2012 season will be Rs 30 crore for each franchise. He also argues that the decline in TAM TRP ratings, from an average of 4.81 in IPL-1 to 3.33 in IPL-5 so far, is misleading because the goalposts have changed. “The ratings of even the most popular entertainment programmes have fallen as a result. IPL is still doing very well on television,” he says. Shukla is also buoyant about overseas revenues.

EVADING THE TAX NET

All nine IPL franchises have been under the scanner of the Income Tax Department after a report of the Parliamentary Standing Committee of Finance in July 2011 instructed tax officials to scrutinise the accounts of all IPL teams. What aroused the suspicion of the Standing Committee was a wide discrepancy between the annual financial returns statements for the assessment year 2008-09 and the assessment year 2009-10. For the year 2008-09, also the first year of IPL, three of the eight franchises, Mumbai, Chennai and Deccan Chargers, showed nil loss. The remaining five showed minor losses-Rajasthan Rs 6 lakh, Punjab Rs 14 lakh, Kolkata Rs 50 lakh, Bangalore Rs 79 lakh and Delhi Rs 2.92 crore. In 2009-10, each franchise reported huge losses-Rajasthan Rs 35.5 crore, Punjab Rs 65.68 crore, Kolkata Rs 11.85 crore, Mumbai Rs 42.89 crore, Chennai Rs 19.3 crore, Bangalore Rs 5.58 crore, Deccan Rs 87.09 crore and Delhi Rs 47.11 crore.

There was no particular reason why losses should have mounted so steeply. The player auctions had been conducted before IPL-1. The cost of players would be the same for IPL-2. The revenue streams would have been greater-the success of IPL drew more advertisers and spectators to the second edition. The only reason for higher costs was the move to South Africa, but that alone could not explain the wide discrepancies. According to sources at the Income Tax Department, while the assessment is complete, investigation is ongoing and franchises have been asked to furnish details.

There are several other issues of apparent financial irregularities red-flagged in the report of the Standing Committee. At least four teams-Rajasthan Royals, Kolkata Knight Riders, Kings XI Punjab and Mumbai Indians- received investments from abroad from tax havens such as Mauritius, Bahamas and British Virgin Islands. BCCI, in its reply to the committee, put all the blame on former IPL commissioner Lalit Modi. Even if true, and that is not proven, how does this exonerate the franchise owners who got the money from questionable unnamed sources? The Enforcement Directorate (ED), charged with investigating these violations, said its investigations have not been completed.

Even BCCI and IPL are under investigation by ED and Reserve Bank of India for operating bank accounts along with Cricket South Africa during IPL-2 without permission. IPL Commissioner Shukla shrugs aside the allegations of financial irregularities, just as he dismisses anything in convention with his usual bluster.

PLAYERS DON’T HAVE LEVEL PLAYING FIELD

There are other problems, inbuilt into IPL, which have created irregular incentives for players. In 2010, all-rounder Ravindra Jadeja was banned from season 3 of IPL for trying to negotiate a contract in violation of league rules. Jadeja, who at the time had not played for the IndianTP Sudhindra national team, was entitled to a salary of Rs 25 lakh, not more, set by the IPL Governing Council. Already a rising star in his franchise, Rajasthan Royals, Jadeja believed he deserved more money. This perverse rule on pay caps for Indian players who have never represented the country has made them vulnerable to the lure of illegal negotiations with franchises and offers from bookies. Curiously, no such cap is applicable to foreign players who have not represented their countries.

A recent TV sting operation on five Indian players who have never represented India revealed the dangerous consequences. The players- TP Sudhindra (Deccan Chargers), Shalabh Srivastava (Kings XI Punjab), Mohnish Mishra (Pune Warriors), Amit Yadav (Kings XI Punjab) and Abhinav Bali-were caught on camera either offering to indulge in spot-fixing or ready to negotiate with other franchises or admitting that their franchises paid them significantly more than the official figure, in cash. An underground economy is clearly thriving in IPL. Modi, the creator of IPL and commissioner in its first three editions, admits that not auctioning uncapped players was a mistake.

There are several possible reforms that can salvage the situation:

  • No player should be retained by a franchise without an auction. In 2008, for example, M.S. Dhoni was bought by Chennai Super Kings at the highest bid price of $1.5 million (Rs 7.5 crore). He was not put up for auction for the 2011 and 2012 seasons in which Gautam Gambhir came out on top with a bid price of $2.5 million (Rs 12.5 crore) from Kolkata Knight Riders. It would be unreasonable to expect Dhoni to have commanded anything less in an open auction.
  • The only players not subject to an auction in IPL-1 were the icon players-Sachin Tendulkar (Mumbai), Rahul Dravid (Bangalore), Sourav Ganguly (Kolkata), Yuvraj Singh (Punjab) and Virender Sehwag (Delhi). Each was, however, to be paid a 10 per cent premium on the highest bid paid out by their team in the open auction. There was some transparency then. Now, with the icon system being replaced by the system of retaining players (icons or not), no one knows how much players are being paid, whether by cheque or in cash. Says Modi, “No one should be allowed to be retained. If a player is important for the franchise, let them bid for him.” Rajiv Shukla also recognises the opacity of retaining players. “We will consider revising this in our next Governing Council meeting,” he says.
  • There should be an independent regulator for sports. “No one is being able to self-regulate. If not for anything else, let the regulator look into the alleged financial bungling of the state cricket associations,” says Ajay Maken. “Put rules in place, things will start moving,” says Bishen Singh Bedi. The former Indian captain says it’s time BCCI auctions each player every year. “Let there be transparency, let us see who is paying what for whom. Let the juniors get a price for themselves so that they do not take money under the table,” adds Bedi.

POLITICS OF CRICKET

IPL would not have survived its serious flaws were it not for a strong cross-party political alliance lending its weight. Shukla is a prominent minister. Arun Jaitley, leader of the Opposition in the Rajya Sabha, is on IPL’s Governing Council and heads its legal and disciplinary committee. The cricket establishment of BCCI and its regional components are packed with powerful politicians. Four are members of the Union Cabinet-Nationalist Congress Party chief Sharad Pawar (ICC president), Congressmen C.P. Joshi (president, Rajasthan Cricket Association) and Vilasrao Deshmukh (president, Mumbai Cricket Association), and Farooq Abdullah (president of the J&K Cricket Association) of the National Conference. The quartet has successfully stalled Maken’s attempts to legislate a sports bill that will force BCCI to be more accountable. “What can I do if no one wants to clean the dirt from cricket?” says Maken.

Shukla says there is no need for BCCI to be under the Government. “We don’t take a penny from the Government. And we have made a global name for ourselves,” he says. The cricket establishment can count on some support from outside the Government. Apart from Jaitley, Anurag Thakur, a BJP MP and son of Himachal Pradesh Chief Minister Prem Kumar Dhumal, is president of his state’s cricket association which hosts IPL games at its stadium in Dharamshala. His party colleague, Kirti Azad, is however a staunch opponent of IPL and went on dharna demanding the abolishing of the league after its string of recent scandals. Azad said that India’s image was being spoilt at an international level because of IPL debauchery and that he has written a letter to Finance Minister Pranab Mukherjee to take action against IPL.

Politics is a power game, and for now Maken and Azad are weak before a muscular establishment. But a poisonous worm is corroding the IPL apple from within, and all the might of Pawar, Shukla and friends will not stop this disease from spreading, if they do not use a sharp scalpel.

- With Kiran Tare and Nishat Bari

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Posted in Conspiracy Archives, India Forgotten, Press Releases, Rated R, Vigilant Citizen | Tagged: , , , , , , , , , , , , , , , | Comments Off

Of luxury cars and lowly tractors

Posted by Admin on December 31, 2010

http://www.thehindu.com/opinion/columns/sainath/article995828.ece

P. SAINATH

Even as the media celebrate the Mercedes Benz deal in the Marathwada region as a sign of “rural resurgence,” the latest data show that 17,368 farmers killed themselves in the year of the “resurgence.”

Even as the media celebrate the Mercedes Benz deal in the Marathwada region as a sign of “rural resurgence,” the latest data show that 17,368 farmers killed themselves in the year of the “resurgence.”

 

When businessmen from Aurangabad in the backward Marathwada region bought 150 Mercedes Benz luxury cars worth Rs. 65 crore at one go in October, it grabbed media attention. The top public sector bank, State Bank of India, offered the buyers loans of over Rs. 40 crore. “This,” says Devidas Tulzapurkar, president of the Aurangabad district bank employees association, “at an interest rate of 7 per cent.” A top SBI official said the bank was “proud to be part of this deal,” and would “continue to scout for similar deals in the future.”

The value of the Mercedes deal equals the annual income of tens of thousands of rural Marathwada households. And countless farmers in Maharashtra struggle to get any loans from formal sources of credit. It took roughly a decade and tens of thousands of suicides before Indian farmers got loans at 7 per cent interest — many, in theory only. Prior to 2005, those who got any bank loans at all shelled out between 9 and 12 per cent. Several were forced to take non-agricultural loans at even higher rates of interest. Buy a Mercedes, pay 7 per cent interest. Buy a tractor, pay 12 per cent. The hallowed micro-finance institutions (MFIs) do worse. There, it’s smaller sums at interest rates of between 24 and 36 per cent or higher.

Starved of credit, peasants turned to moneylenders and other informal sources. Within 10 years from 1991, the number of Indian farm households in debt almost doubled from 26 per cent to 48.6 per cent. A crazy underestimate but an official number. Many policy-driven disasters hit farmers at the same time. Exploding input costs in the name of ‘market-based prices.’ Crashing prices for their commercial crops, often rigged by powerful traders and corporations. Slashing of investment in agriculture. A credit squeeze as banks moved away from farm loans to fuelling upper middle class lifestyles. Within the many factors driving over two lakh farmers to suicide in 13 years, indebtedness and the credit squeeze rank high. (And MFIs are now among the squeezers).

What remained of farm credit was hijacked. A devastating piece in The Hindu(Aug. 13) showed us how. Almost half the total “agricultural credit” in the State of Maharashtra in 2008 was disbursed not by rural banks but by urban and metro branches. Over 42 per cent of it in just Mumbai — stomping ground of large corporations rather than of small farmers.

Even as the media celebrate our greatest car deal ever as a sign of “rural resurgence,” the subject of many media stories, comes the latest data of the National Crime Records Bureau. These show a sharp increase in farm suicides in 2009 with at least 17,368 farmers killing themselves in the year of “rural resurgence.” That’s over 7 per cent higher than in 2008 and the worst numbers since 2004. This brings the total farm suicides since 1997 to 216,500. While all suicides have multiple causes, their strong concentration within regions and among cash crop farmers is an alarming and dismal trend.

The NCRB, a wing of the Union Home Ministry, has been tracking farm suicide data since 1995. However, researchers mostly use their data from 1997 onwards. This is because the 1995 and 1996 data are incomplete. The system was new in 1995 and some big States such as Tamil Nadu and Rajasthan sent in no numbers at all that year. (In 2009, the two together saw over 1,900 farm suicides). By 1997, all States were reporting and the data are more complete.

The NCRB data end at 2009 for now. But we can assume that 2010 has seen at least 16,000 farmers’ suicides. (After all, the yearly average for the last six years is 17,104). Add this 16,000 to the total 2,16,500. Also add the incomplete 1995 and 1996 numbers — that is 24,449 suicides. This brings the 1995-2010 total to 2,56,949. Reflect on this figure a moment.

It means over a quarter of a million Indian farmers have committed suicide since 1995. It means the largest wave of recorded suicides in human history has occurred in this country in the past 16 years. It means one-and-a-half million human beings, family members of those killing themselves, have been tormented by the tragedy. While millions more face the very problems that drove so many to suicide. It means farmers in thousands of villages have seen their neighbours take this incredibly sad way out. A way out that more and more will consider as despair grows and policies don’t change. It means the heartlessness of the Indian elite is impossible to imagine, leave alone measure.

Note that these numbers are gross underestimates to begin with. Several large groups of farmers are mostly excluded from local counts. Women, for instance. Social and other prejudice means that, most times, a woman farmer killing herself is counted as suicide — not as a farmer’s suicide. Because the land is rarely in a woman’s name.

Then there is the plain fraud that some governments resort to. Maharashtra being the classic example. The government here has lied so many times that it contradicts itself thrice within a week. In May this year, for instance, three ‘official’ estimates of farm suicides in the worst-hit Vidarbha region varied by 5,500 per cent. The lowest count being just six in four months (See “How to be an eligible suicide,” The Hindu, May 13, 2010).

The NCRB figure for Maharashtra as a whole in 2009 is 2,872 farmers’ suicides. So it remains the worst State for farm suicides for the tenth year running. The ‘decline’ of 930 that this figure represents would be joyous if true. But no State has worked harder to falsify reality. For 13 years, the State has seen a nearly unrelenting rise. Suddenly, there’s a drop of 436 and 930 in 2008 and 2009. How? For almost four years now, committees have functioned in Vidarbha’s crisis districts to dismiss most suicides as ‘non-genuine.’ What is truly frightening is the Maharashtra government’s notion that fixing the numbers fixes the problem.

Yet that problem is mounting. Perhaps the State most comparable to Maharashtra in terms of population is West Bengal. Though its population is less by a few million, it has more farmers. Both States have data for 15 years since 1995. Their farm suicide annual averages in three-five year periods starting then are revealing. Maharashtra’s annual average goes up in each period. From 1,963 in the five years ending with 1999 to 3,647 by 2004. And scaling 3,858 by 2009. West Bengal’s yearly average registers a gradual drop in each five-year period. From 1,454 in 1999 to 1,200 in 2004 to 1,014 by 2009. While it has more farmers, its farm suicide average for the past five years is less than a third of Maharashtra’s. The latter’s yearly average has almost doubled since 1999.

The share of the Big 5 ‘suicide belt’ States — Maharashtra, Andhra Pradesh, Karnataka, Madhya Pradesh and Chhattisgarh — remains close to two-thirds of all farm suicides. Sadly 18 of 28 States reported higher farm suicide numbers in 2009. In some the rise was negligible. In others, not. Tamil Nadu showed the biggest increase of all States, going from 512 in 2008 to 1060 in 2009. Karnataka clocked in second with a rise of 545. And Andhra Pradesh saw the third biggest rise — 309 more than in 2008. A few though did see a decline of some consequence in their farm suicide annual average figures for the last six years. Three — Karnataka, Kerala and West Bengal — saw their yearly average fall by over 350 in 2004-09 compared to the earlier seven years.

Things will get worse if existing policies on agriculture don’t change. Even States that have managed some decline across 13 years will be battered. Kerala, for instance, saw an annual average of 1,371 farm suicides between 1997 and 2003. From 2004-09, its annual average was 1016 — a drop of 355. Yet Kerala will suffer greatly in the near future. Its economy is the most globalised of any State. Most crops are cash crops. Any volatility in the global prices of coffee, pepper, tea, vanilla, cardamom or rubber will affect the State. Those prices are also hugely controlled at the global level by a few corporations.

Already bludgeoned by the South Asian Free Trade Agreement (SAFTA), Kerala now has to contend with the one we’ve gotten into with ASEAN. And an FTA with the European Union is also in the offing. Kerala will pay the price. Even prior to 2004, the dumping of the so-called “Sri Lankan pepper” (mostly pepper from other countries brought in through Sri Lanka) ravaged the State. Now, we’ve created institutional frameworks for such dumping. Economist Professor K. Nagaraj, author of the biggest study of farm suicides in India, says: “The latest data show us that the agrarian crisis has not relented, not gone away.” The policies driving it have also not gone away.

 

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