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February 5, 2001 Issue




COVER
 

Bloated Babudam
More heads, less work-that's the state of the bureaucracy in India. A privileged lot with guaranteed rights, pay and perks, they cost the taxpayers Rs 75,000 crore a year.The work culture makes them surplus but hard to get rid of.

 
THE NATION
 

Taking the
Plunge

Congress President Sonia Gandhi shedding her inhibitions and taking a dip at the Mahakumbha in Allahabad and the Vishwa Hindu Parishad's Dharma Sansad at the same venue were both seen as political moves.


 
STATES
 

Starved of Future
With the state reeling under a severe drought and government measures providing little succour, the prospect of a famine looms large. The debilitating results are now showing up as a chain of catastrophes in this rain-fed region.

 

 
BUSINESS
 

Puppy Paradise Professionals have turned Ludhiana into the richest city.

 
Columns
 

Fifth Column
by Tavleen Singh
Let's Get Real

 

 
 

Kautilya
by Jairam Ramesh
Core To RBI,Sore To Others

 

 
 

Right Angle
by Swapan Dasgupta
Knee Dip In Hindu Votes

 
 

Flip Side
by Dilip Bobb
Panic Stations

 

 
Other stories
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  The Nation  
  Cinema  
  Viewpoint  
  Profile  
  Arts  
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NewsNotes
 

Luck's Abode

 
 

Pen Friend

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NATION: HINDUJAS

Passport Troubles

The brothers' troubles over Bofors are compounded by British minister Mandelson's resignation


By Anita Anand in London

A dip in the Ganga during the Mahakumbha is said to be the ultimate act of self-purification. Which is why lakhs of Hindus have flocked to Allahabad over the past fortnight. Last Wednesday's pilgrims included the brothers Hinduja-Srichand, Gopichand and Prakashchand-now on an enforced and extended visit to India, courtesy the CBI and Special Judge Ajit Bharihoke hearing the interminable Bofors kickbacks case.

British minister Mandelson

For one of the wealthiest British Asian families, the Ganga dip was probably resonant with expectations. Not only have the brothers been barred from leaving India without the court's permission, they have been questioned by the CBI as to why the money remitted by Swedish arms manufacturer AB Bofors found its way into bank accounts controlled by the family.

But it's not merely hiccups in their land of origin that is worrying the Hindujas. A second front has been opened in London. They have been linked to a controversy that has led to the resignation of cabinet minister Peter Mandelson, one of the closest associates of Prime Minister Tony Blair. Worse, it has nudged Blair into ordering an inquiry by former Treasury solicitor Sir Anthony Hammond into whether or not the issue of a British passport to Srichand in September 1999 "was properly dealt with in all respects".

SECOND FRONT: The court has grounded the Hindujas in India

The inquiry follows dark hints of a link between the £1 million (Rs 7 crore) Hinduja donation to the ailing Millennium Dome project of the Labour Government and a British passport for Srichand. By the admission of a Hinduja spokesman, "In the summer of 1998 Mr Hinduja asked Mr Mandelson informally if an application by him to the Home Office for British nationality would be considered." The query had a purpose: Srichand's passport application had been turned down in 1990.

Mandelson said he telephoned Home Office Minister Mike O'Brien in June 1998 and "an innocent inquiry was made in a two-minute phone conversation". The Hindujas were told that Srichand was eligible to apply. According to Blair's official spokesman, when the Hindujas also "asked Peter to endorse or support any application, he refused". The application was eventually supported by former prime minister Sir Edward Heath, former Liberal Democratic Party leader Sir Paddy Ashdown and former cabinet minister Jack Cunningham-a testimony to the political clout of the Hindujas.

Where Mandelson erred was in not admitting to the telephone call to O'Brien in the first place. This led to Parliament being misled. When the truth emerged, Mandelson put in his papers.

But it's not Mandelson alone who has been forced to drop out of political life. If the buzz in London is anything to go by, the Hindujas may find that many of London's rich and famous will be keeping a discreet distance from them.

There was a time when an invitation from the Hindujas was an irresistible calling. If you turned up you would inevitably be confronted with wall-to-wall celebrity power.

Since moving base from Teheran to London in 1979, the Hindujas have avidly wooed Britain's political elite. They once courted the Conservatives and became close to Margaret Thatcher and John Major. In 1999, they hosted Blair and wife Cherie to a lavish Diwali celebration at London's Alexandra Palace. Says an MP: "Wherever the Hindujas went, they had a damn camera in tow. It will be very damaging if some of those photos now appear in the press."

That's a squeamishness the Hindujas have to live with when they return. To be "outed" as a Hinduja friend has become dangerous. The media have already turned on Minister for Europe Keith Vaz who has admitted to writing letters on behalf of the Hindujas to both Mandelson and Blair in 1997. "Even more astonishingly," wrote the Daily Mail carpingly, "they were actually drafted by them for his signature. He has refused to say what these letters were about."

For the media it's an open season on the Hindujas. News bulletins have been bringing up archive pictures of the brothers with sinister music in the background. Eerie lighting illuminates the faces of the men who are just referred to as "the brothers".

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