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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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FROM THE EDITOR IN CHIEF

There is a stink of corruption in the corridors of power these days. First, the head of the ruling party is caught taking cash and then, last week, B.P. Verma, the chairman of the Central Board of Excise and Customs (CBEC), is arrested for corruption. Outside government circles, the importance of Verma's arrest is perhaps lost on many. The chairman of CBEC heads a mammoth staff of 80,000 and has enormous powers. The board was responsible for gathering almost half the Central government revenues of Rs 1,20,000 crore, enough to feed the budgets of major states like Maharashtra and Gujarat, with plenty to spare. Verma could appoint people, transfer them and direct his officers to interpret various product categories to manipulate the rate of customs and excise dues. For example, on his bidding, a containerload of automobile engines could be reclassified as used diesel generators-leading to a reduction in duty by an amazing six times from the present rate of 180 per cent. With appropriate appointments, a person in Verma's position could easily subvert the system.

 

The whole affair is sordid. Verma apparently lorded over an organised crime network that involved money, sex and drugs. He is accused of allowing the smuggling of containerloads of consumer products from Uzbekistan in exchange for a cut. In a second string network, Uzbek women posing as tourists in the seedy hotels of Paharganj in Delhi used the money they earned from illegal trade and prostitution to buy spurious drugs and smuggle it back to Uzbekistan with the connivance of customs officials, who were sometimes paid with sexual favours as well. "It's like a B-grade crime thriller, only here it's a true story," says Principal Correspondent Sayantan Chakravarty, who along with Senior Editor Sumit Mitra and Associate Editor Harinder Baweja reported the cover stories that detail the life and crimes of Verma and the Uzbek connection. How did such a man reach so high? And how pervasive was the corruption? What example did he set for officers under his direction?

The good news is that corruption is again the talk of the day and that top echelons have been caught in the net, rather than the usual underlings. For too long, corruption has been an accepted practice in public life. Hopefully, such exposes will make a dent in the rotten system.


(Aroon Purie)


 

 
 
 
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