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April 16, 2001
Issue


India Today, April 16, 2001

 

COVER
   

Anything To Declare, Mr Verma?
The arrest of the Central Board of Excise & Customs chairman has revealed the rot that has set in the premier revenue- collection authority. An inside story of his assets, and rise to position of power. Plus: The sex and smuggling controversy arising from his dubious links with Uzbek nationals.

The Silk Route
The Customs played an active role in a smuggling racket by Uzbek couriers that could have compromised the nation's security.

Rites Of Passage Despite stringent internal controls, the CBEC is one of the most sullied departments in the country.

 

 
THE NATION
   

The Earth Citizen
The former United States president returns to India to share the sorrows of quake-hit Gujarat.

 

 
STATES
   

In Quest Of Numbers
There's a scramble for winning combinations, from caste-based alliances in Tamil Nadu to political pragmatism in Bengal and Assam.

 

 
ENVIRONMENT
 

Green And Bear It
The Delhi Government's complacency leads to a bumpy ride for commuters.

 

 
ECONOMY
 

Free At Last
Removal of quantitative restrictions on all imports will transform the Indian market like never before.

 

 
OTHER STORIES
     
 



 
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COVER STORY: B.P. VERMA

Against All Odds

Verma was unscrupulous and parochial yet managed to reach the top using his clout

The Cross Connection
Verma's Riches

Late last Wednesday evening, the Ministry of Finance received a one-and-a-half page report from the CBI headquarters on the arrest of Central Board of Excise and Customs (CBEC) chairman B.P. Verma in a corruption case two days earlier. The report was made available after a great deal of persuasion and apparently at the intervention of Cabinet Secretary T.R. Prasad. Finance Minister Yashwant Sinha, who was in his constituency in Hazaribagh, was contacted and a telephonic approval was obtained for placing Verma under suspension. And before North Block went on an extended holiday, it was curtains for the controversial customs chief.

 

POWERLESS: Yashwant Sinha asserts that he wanted Verma out two months ago

 

Verma was no ordinary official. He headed an 80,000-strong work force that included 1,729 Class I officers responsible for a projected collection of Rs 53,750 crore in revenue this fiscal year. He was no stranger to controversy either. A former colleague, B.V. Kumar, ex-director general of revenue intelligence, puts it bluntly. "Verma is a man known for corruption." Till 1992, the then CBEC chairman, J. Dutta, is said to have ensured that Verma was not given an executive posting as he had a "reputation of being corrupt". In May 2000, Central Vigilance Commissioner N. Vittal had made it known that there was a vigilance file against Verma that was yet to be closed. But fortune was on Verma's side. Though a board member had filed a petition in the Delhi High Court questioning his credentials, Verma was appointed CBEC chairman after the petition against him was "dismissed as withdrawn" by the court.

Verma was known as a " hands-on officer". As deputy director in the Directorate of Revenue Intelligence, he oversaw anti-smuggling operations on the Indo-Nepal border. His colleagues say as chief customs commissioner of Kanpur, Verma took keen interest in the postings of officers on the Nepal border. His peer group charges him with operating through a coterie of senior customs officers, whom he rewarded with lucrative postings at Visakhapatnam, Kolkata, Chennai and Noida. Verma's baiters accuse him of being part of the well-entrenched network of customs and excise officers, exporters and agents. Besides corruption, he is also accused of placing pliant officers in crucial posts in the Excise and Customs Department and of parochialism. It is alleged that he used the influential Kayastha lobby to get jobs done.

Verma, it is said, knew that the CBI was on his trail. But so confident was he of his clout that in mid-March, a week before the raids began on his properties, he addressed a seminar in London. And its subject? Customs and integrity.


 
 
 
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