States: Maharashtra; Ransom City

The alarming increase in extortion threats spreads panic among Mumbai's businessmen and traders, forcing the state Government to sit up and take note.

Nicky Aneja is your typical hip-hop with the gift of the gab. He sells apartments in Mumbai's western suburbs. Such was his normal attire -- cell phone, pager, trendy shoes, blue-tag Levi's and designer shirts -- that often the sellers mistook him for a buyer. For over three weeks now, Aneja has taken to "dressing down". The reason: a month ago two of his realtor friends got "calls" after they advertised for clients.

Aneja is not the only one "dressing down". In Mumbai, there are many like him who have come to fear the telephone ring -- the caller could be an extortionist asking for his cut. Lobbyist and Congressman Vijay Kalantri recalls how one of his friends received a "congratulation" call within five minutes of driving home in a new Honda City. It was only when Kalantri's friend asked for the caller's identity that he realised that this was the "dreaded call".

From hoteliers to builders, brokers to traders and even small-time businessmen who filed under the VDIS, Mumbaiites have been gripped by fear. In hushed tones they exchange notes about the "calls" they have all received. An official of the Hotels and Restaurants Association reveals that nearly two-thirds of the eatery owners have preferred to go "out of town", thanks to the threats from extortionists.

Indeed, official figures with the state Police Department show a clear uptrend in complaints relating to extortion threats. While 251 complaints were registered with the Mumbai Police last year, the figure has jumped to 713 till the second week of November. Coupled with this is the incidence of shootouts in the city -- from 33 last year to 86 in the first 10 months of this year -- accounting for 93 deaths. But Joint Commissioner (Crime) D. Shivanandan believes there is no reason to panic. "Much of this is plain rumour-mongering. In most cases we investigated, it has been found that the calls were no more than pranks." In fact, the police even caught perpetrators in two such cases, one involving a retrenched executive who pretended to be Mumbai don Arun Gawli's man.

Deputy CM Munde
"It'll be bullet for bullet"

Deputy Chief Minister Gopinath Munde, who holds the home portfolio, spoke to Associate Editor V. Shankar Aiyar:

Q. How do you explain the spurt in extortion in the city?

A. I personally don't feel there is a sudden rise. This threat perception is not backed by facts. Wherever there has been a problem we have acted. As of today, we have received 713 complaints about extortion, based on which 277 cases have been registered.

Q. So why this feeling of terror?

A. Following the judiciary's observation on the encounters, police morale was hit badly. But I have told them to answer bullets with bullets. I fully back them.

Q. The police claim there is undue political interference.

A. I will not spare anyone, no matter which party he is from, Congress, BJPor Shiv Sena.

Q. What happened to your campaign against the criminal-politician nexus?

A. I am still committed to it. In fact, I am putting together a team to examine and report on the criminal-politician and criminal-police nexus.

Pranks or not, the wave of terror cannot be denied. Weddings are being postponed, lavish parties are becoming a thing of the past. One executive of an airline who was planning to sell his central Mumbai flat has put it off fearing calls from extortionists who he believes would demand a share of the proceedings. Says Mohan Gurnani, president of the Federation of Traders' Associations (FTA), an umbrella group of over 750 associations: "Every day there are over 100 traders receiving threats." Such is the fear among residents that in the past two weeks there have been at least four meetings hosted by different associations to discuss the state of law and order and security in the city. In fact, Kalantri's All India Association of Industries capitalised on World Quality Day to host a meet on "Quality Strategies to Combat Terrorism".

Deputy Chief Minister Gopinath Munde, who also holds the home portfolio, has farmed out his own strategy. To start with, he has asked the city police commissioner to counter the gun culture. "I have asked them to answer bullets with bullets. And nobody, with whatever political influence, should be spared" (see interview). In other words, bump off the criminals in what have come to be known as encounters.

But even Munde knows that this can only be a part of the strategy. Besides, court strictures on the Mumbai Police regarding encounters have hit the morale of the force. Till such time as he comes up with an alternative plan, Munde has kept himself busy this past fortnight conducting surprise raids on police stations and suburban addas. His opponents say the deputy chief minister is playing to the galleries. Even some of his own partymen believe that Munde's recent offensive is a result of the upbraiding he got from Prime Minister Atal Bihari Vajpayee who heard several complaints from prominent citizens on his last visit to Mumbai.

Munde and other members of the Shiv Sena-BJP Government would have everyone believe that shootouts and killings are the result of inter-gang warfare. This perhaps is one reason. An equally important one is that killings and extortions have increased primarily due to the virtual closure of traditional underworld activities. Smuggling is just one example. Over the past five years, with the economy opened up, the once-lucrative smuggling industry is no longer financially viable. Ditto for gold following the lifting of restrictions on importing the yellow metal. The worst hit of course has been the real estate business -- a cash cow -- thanks to the slump over the past two years. With their usual avenues shrinking, the gangsters are now fighting pitched battles for a slice of the turf. Which perhaps explains the move towards non-traditional areas like extortion.

According to a senior police officer, "The level of extortion is symptomatic of the level of interference in the working of the Police Department." This is hardly a new phenomenon, but what is alarming is the depths to which it has plumbed during the Sena-BJP regime. Senior Congress leader Sharad Pawar recently accused some state ministers of "direct involvement with the mafia groups operating in the city". The charge is not entirely baseless. Not just because of the "hafta" culture that the Sena is known for. A section of the alliance Government, for example, has been agitating for the transfer of Additional Commissioner Y. C. Pawar for his stern action against a particular group that is said to have close links with some ministers. Indeed, senior BJP leaders admit that the problem persists primarily because of the khandani (donation) system practised by the Shiv Sainiks. Says a BJP minister: "How can you call khandani legal when it is taken by force and extortion as illegal?"

At the root of the problem are other issues. For years now, the Maharashtra Government has ignored the legitimate demands for more policemen, arms, vehicles and communication equipment citing budgetary constraints. For a densely populated, crime-prone city like Mumbai, there are just three policemen per 1,000 people. Says Police Commissioner R.H. Mendonca: "The force is stretched to its limits. There is no let up and the resource gap is widening. I need 10,000 men -- 3,000 men immediately. Give us the resources and see the difference."

At the moment, the Government seems in no mood to oblige. In an age when criminals use hi-tech weapons and equipment, the police are denied even the bare minimum. There are instances when gangsters in jails and undertrials in courts have used cell phones to make extortion threats. But when the Mumbai Police sent a proposal worth Rs 7 lakh for the purchase of cell phones, the state Government shot down the idea. If the department has a few phones for its use, it is courtesy the cell phone companies.

Forget cell phones. Till recently, a large section of police officials were forced to share even revolvers and pistols while their mode of transport were a few run-down jeeps and motorcycles. It was only last week that at the intervention of Munde the Government cleared the purchase of 200 motorcycles and 150 jeeps. As former Union home secretary K. Padmanabhaiah puts it, "Criminals in Mumbai are organised because they have money, the best lawyers and wield influence. Police are at a disadvantage. Politicians have to recognise this and work on a long-term plan."

Still, the city police does seem to be fighting back. In the past two weeks there have been over 15 encounters indicating the police are keen to send a message to the underworld. More importantly, Mumbaiites have sent another message to the politicians. At a meeting on November 17, the FTA served Chief Minister Manohar Joshi with an ultimatum: improve things or traders will suspend paying state levies. The way crime is soaring, more and more are likely to join the chorus. That, and the sheer prospect of political annihilation, should goad the Government into action.