Monday, May 01, 2006

Can Merit and Social justice be compatible?

Dear friends,
The recent debate generated by the proposal to reserve 27% seats in Union educational institutions for backward classes has predictably been very shrill and hysterical. Reservation is a classic zero-sum-game issue and polarizes society intensely, as the gains to a social group are matched by losses to another. Prejudice and bitterness in this debate must be overcome by facts and logic. We all need to step back a little and take a deep breath.

There are three critical issues we need to examine before reaching any conclusions.

First, even today the future of a child can be predicted fairly accurately at birth based on caste, family and gender in most cases. Such a predictable future determined by the accident of birth and unrelated to abilities and hard work is an unacceptable disgrace in modern civilization. Poor children from deprived sections are as brainy and sharp as others, and yet they seldom fulfill their potential, as opportunities for vertical mobility are denied.
As a result, much of the gene pool of our society is wasted. Sustained high growth can be preserved only if we include all social groups in a modern, humane vision of an egalitarian society where all sections are winners. There is a clear and compelling case for strong affirmative action policies to promote equity and opportunity and preserve peace and harmony. Otherwise, violence will become arbiter of social justice. Equity and social harmony cannot be delinked.

Second, our quest for social justice and opportunities for all must be combined with the search for excellence. Clearly, in a modern society competence and performance are critical for economic growth, service delivery and governance. We need to devise means of affirmative action which ensure high standards of performance.

Third, thousands of youngsters would never have found dignity and opportunity without affirmative action policies. While there are obvious distortions, the fact remains that reservations benefited large sections, and many of them performed creditably once opportunities are provided. Equally, the benefits of reservation are uneven, with families which prospered early through preferential treatment enjoying a huge lead over the poorer, uneducated families.

Given the complexity of the issue and the unevenness of outcomes leading to distortions, there is resentment on both sides. The poorer SCs, STs and OBCs feel cheated by politics of tokenism and lack of access to education and employment. The other sections, particularly the poorer among them, feel discriminated and resent diminishing opportunities relative to demand. Given the enormous hunger for quality education, the availability of seats in institutions of excellence and the perceived fairness of selection are hugely contentious issues.

What do you think?Can we promote equity with efficiency? Can 'merit' and 'social justice' be made compatible? Can preferential policies be taken out of the prison of zero-sum-game through win-win solutions?

Happily, rational solutions are available to these dilemmas. Policy makers and media need to focus on them, instead of indulging in feverish invective and hype. Political expediency, social ostracism and rage must give way to rationality, wisdom and long-term solutions. What, then, can be done?

First, preferential policies must be coupled with incentives for performance, particularly in professional courses and in institutions of excellence. This can be done by giving a head start to candidates from disadvantaged groups. For instance, if 90% is the cut off score for general candidates, preferential groups can be admitted at, say 80% or 75%. This provides motivation and incentive to reach a benchmark, and guarantees uniformly high standards. The preferential candidates must be given free, intensive coaching during plus two course to meet these standards.

Second, a 'Means Test' must be adopted for preferential treatment. Among disadvantaged groups, reservations can be primarily for families with low income, and those below a certain grade in government or profession. And among other sections, poor candidates can be guaranteed free tuition, and no student will be denied higher education for want of money. A system of scholarships, endowments and soft loans can be institutionalized.

Third, there is a case for rationalizing the reservations for BCs. Mandal Commission report is over 25 years old, and periodic surveys and reclassification are needed for determining groups deserving preferential treatment and identifying the most backward classes (occupational groups) for special privileges.

Fourth, there is need for deregulation and expansion of higher education to suit the needs of a growing, large economy. Accreditation, academic freedom, rating and transparency instead of licensing and regulation will expand opportunities vastly. In addition, state institutions must significantly expand capacity to meet the demand for quality higher education.

Finally, school education and healthcare must be the corner stones of governance. Tony Blair staked his government's reputation and survival on the quality of education; George Bush was elected in 2000 on the basis of his record in school education as Texas Governor. In India, public policy, political discourse and governance are largely divorced from education. Education engages the attention of politicians and media only when reservations become an issue. The appalling failure of the state in the social sector is at the heart of the persisting inequities.

But those who argue that good school education is a substitute for preferential treatment must recognize that the poor and disadvantaged cannot be held guilty for monumental governance failure. Neglected groups are hungry for good education and opportunities. Even poor rural Dalits are spending Rs.200 per month per child in the hope of 'convent' education. The nation needs preferential policies and good school education. Meanwhile, we can design programmes to combine equity with efficiency.We can create a win-win situation!

Questions :
1.According to you,what is the best way to make Merit and Social Justice compatible?

Your opinion and ideas will help fuel a very necessary debate on this contentious issue.I look forward to hearing from you!

21 comments:

  1. AnonymousMay 08, 2006

    JP sir,

    I have been following your work from more than a year now. I have read many of your publications in the Loksatta website. Your ideas have already made a deep impact in my way of living and thinking.

    In this article, You have suggested preferential treatment to families with low incomes and updating the mandal classification.
    Due to high level of corruption in bureaucracy, it is highly probable that even a rich guy shows a low income certificate & appeals for preferential treatment. Also it is highly probable for false entries into periodic surveys.
    I think we first need a system to track people : their jobs, incomes, taxes, accounts, crimes just like the SSN in USA. This must be a very secure system. Then implementing these ideas becomes very easy.

    But I am afraid that even these will be altered by people who have power to do so. I am not being pessimistic how to break this vicious circle?

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  2. sir, great to interact with someone as accomplished and knowledgeable as you.

    i have very different understanding and opinion about the reservation issue. it can be easily passed away as that of a selfish "non SC/ST/OBC"

    but i strongly believe caste based reservation only divides our country further. how can social justice be based on injustice to another set of people? how can merit be on the basis of lowering the standards of a nation?

    i have just concluded a post on my blog on reservation and i would love to have your comments.

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  3. AnonymousMay 12, 2006

    Sir,
    I understand that reservations are introduced in our country just to wipe out the social and economical differences that we have 50 years ago,and to make india as one-india where all the citizens in the Country are Equally respectable. Unfortunately, from the day of impendence the reservations are increasing year by year instead of reducing and now it reached to 49% and trying to cross it limits to reach 50%. The gradual improvement in these reservations says that social and Economical differences are increasing day by day.
    Is this what our leaders who made the Indian constitution expected?

    I don’t have any issue even if Govt. made reservation to 80%, but i want to ask them only one question "For how many years you want this reservations to continue, to make every one equal in india, 1 year, 2 year or 5 years? Give us the Target date and after the date turn all reservations to 0%"

    --Regards Ram

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  4. I have been closely following the blogs on reservation issue. Interestingly, and expected also, most of them are the results of an outburst of emotion rather than rational thoughts. The same is true for the responses too. Really sad to see that so far there are only three comments to this insightful article.

    I would like to compare it to a circular track and the different starting points to each contestants in those lanes in that track. I wish the issues at hand were as simple, for explanation as well as solution. Somebody pointed out that a half empty glass is half full also. Good to see people who see it from all perspectives.

    You have almost said whatever I would like to say. I would be able to answer specific questions on my experiences/observations.

    Before concluding for now, let me say something on merit. There is a superiority complex in terms of numbers. For example, the rank in an entrance examination. Majority of the people think that number truely reflects one's qualification into the system in a strict descending order. This makes them feel that the talent or interest of somebody who have got a rank in the thousands is far inferior to somebody who got into the first ten or twenty. I strongly disagree. From my experience, after four years of my engineering course, the situation was not as they thought it should be.

    You talked for the masses. For the millions of India's children out there who really want that lift for all those billion reasons, thank you. Because I am one of them.

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  5. AnonymousMay 18, 2006

    One of the main arguments for reservation in higher educational institutions is to provide social equality among different sections of people in our society. This is based on the fact that people of backward classes are denied quality education in schools to compete effectively for getting admitted to these higher educational institutions. However providing reservations at this level of education may not really solve the root problem of giving access to high quality education for every individual in our society. Any efforts to provide social equality should be directed towards improving educational standards of schools in rural areas and providing support to economically weaker sections. Having a strong school education would allow any individual to compete equally with students from a similar educational background.This is not any easy effort but strengthening our primary education system would yield long term benefits and also addresses the problem of social Inequality.

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  6. AnonymousMay 18, 2006

    May be a better way is to have reservations in all schools including public and private schools. Also finanicial assistance should be provided to poorer sections in the form of easy loans and scholarships. After nearly 12 years of schooling, there would be a level playing field to compete for entry into higher educational institutions without reservations. Just a thought. Don't know if it addresses the real problem.

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  7. You said it. We should go for income based reservation, re-classification of preferred groups, and more state funded activities in education and health care. The last two will be the most costly services in near future.The first two can be achieved, if our politicians understand the things properly and need of the hour. But how can you improve the two services with available state funds.There comes the role of private players, as we see the exponential activities by them in both educational and health care systems. And state is going back from these services in higher scale.No private party will invest money with our profit.Even in win-win situation, the winners will be winners, and loosers will be altime loosers again.

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  8. AnonymousMay 22, 2006

    Current system of reservation allows a student to get benefitted at graduate level, post graduate level and also helps them secure a job. After that, It would also allow his children and grandchildren to seek such benefits. I am trying to understand why the current system allows a person or his family to obtain such benefits repetitively.
    Are reservations based on the presumption that social Inequalities would remain the same regardless of a person receiving such benefits or not. In that case, social InEqualities cannot be removed with reservations for disadvantaged groups.
    Or Is it that we as society would like to have preferential policies to help disadvantaged groups until social InEqualities in our society are removed by other means.
    I understand that social InEqualities exist in our society and especially more in rural areas. And there has been some improvement in recent years but I do not know if reservations is a factor of it.

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  9. Dear Yashwant,
    Affirmative Action (A.A.) in any society is both complex and contentious. In a discussion of this kind, what we can attempt is to define the principles around which a sensible A.A. policy can be implemented. A lot of detailing is certainly required for effective implementation. Regular surveys, updating and mid course corrections are necessary.

    Dear Mind Curry,
    I do agree that accidental birth cannot be the sole criterion for Affirmative Action (A.A.).But we must acknowledge that even today, in India, the future of a vast proportion of children is determined by the accident of birth. Therefore any A.A. policy has to take into account cast as well as means (economic criteria).However it must be nuanced to give incentive for performance and progressive dereservation must be built into the policy so that over the next few generations we will be able to build a system not requiring A.A. policies.

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  10. Dear Ramkumar,
    Your question is a very valid one. If the state fails to provide good quality education and health care, accessible to every single child born, irrespective of cast, no amount of Affirmative Action will change the conditions significantly. Only a small number of lucky ones will get the advantage initially, and their progeny will enjoy most of the fruits of reservation. Subsequently, and in the process, A.A. will largely help a class of ‘neo-Brahmins’. Therefore the real answer lies in simultaneous measures to redefine the states’ role and to transform the school education and health care system. But we must recognize that the failure to accomplish these goals is not the fault of the poor and dis-advantaged sections. The Indian state, our political system and the opinion makers must fully share this responsibility and set things right. Meanwhile, we need to offer hope and create conditions for peace and harmony in society. In that sense sensible Affirmative Action policies should not be token responses, and must be seen as short and medium term measures to build an inclusive and harmonious society.

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  11. Dear Myna,
    Thank you for your comments. I am sure that this emotional frenzy will pass and people will quickly come to their senses. It is easy to arouse passions based on prejudice which is in turn based on real or mythical issues. We need to move forward from zero sum games to win win solutions. Our society has enormous resilience despite its obvious flaws. We will surely overcome the current phase and build a country for all where both competence and justice will be complementary to each other.

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  12. Dear Anonymous:
    You are absolutely right in recognizing the need for a strong school education, through the strengthening of our primary education system, to address the problem of inequality. Sadly, collapse of state schooling drove many children –including the poor-into private schools. Many of these ‘private’ schools are of indifferent quality. Very few schools really help fulfill the potential of most pupils. As a result, only a few outstanding children, or those who are lucky to be inspired by good teachers, or children whose parents have the means, ability and motivation tend to do well in our schools.

    Therefore, the real challenge is the painstaking rebuilding of our state and private school network and make it attractive and effective. Sadly the trend in the past 40 years has been exactly in the opposite direction.

    • Please read a piece on school education at www.loksatta.org\fexp27jan06.htm ;
    www.loksatta.org\fexp13jan06.htm

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  13. Dear Anonymous,
    Formal reservations in public schools are conceptually difficult to implement, because by definition all public schools are open to everyone. In private schools, this effort is made in pockets of India and there is merit in replicating those practices. However the real problem is the demand supply gap. For a country our size, with 45% of the population below 18 years of age, we simply do not have enough quality schools-public or private. Massive investment and effort is needed to build a first rate school system that our children need.

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  14. Dear Anonymous,
    I agree with you. The logic of reservations demands that there is progressive dis-reservation of those families and groups that have benefited significantly and /or achieved a level of reasonable income. But for us to devise such rational policies, we need dispassionate examination of facts, rational debate and a calm environment to make informed judgments.

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  15. Dear Pazhangalam,
    In a very fundamental sense the challenge of the next decade is building first rate education and health infrastructure to help fulfill the potential of our children.Undoubtedly, this is difficult given our present political system. Even now, much of American and British discourse and contention revolves around education and healthcare. We have an infinitely more complicated situation. If we have the will to change the situation, we definitely can. For instance, there is a very affordable and practical way to transform health care and to build something similar to Britain’s National Health Service in 6-7 years. Estimates indicate that it will cost 1, 50,000 crores over the next 6 years, in addition to current expenditure. This is less than 1% of our G.D.P. For more details visit:
    http://www.loksatta.org/fexp17dec04.htm
    http://www.loksatta.org/fexp080ct04.htm
    http://www.loksatta.org/fexp10Sep04.htm
    http://www.loksatta.org/fexp13Aug04.htm
    In education too, we shall look at an elegant set of solutions based on infrastructure, skills and incentives.

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  16. AnonymousJune 01, 2006

    I agree with you that a rational debate and a calm environment are required to make good judgements in this issue. thanks for your responses. I feel like our society would be divided more in terms of economic benefits received rather than social status(caste or religion). Wealth creation has become the most significant factor to recognize individual achievement and success. Educational costs are rising sharply in institutions(especially schools and colleges) providing good quality education that is based on our current needs. In such a scenario, economically backward groups would be disadvantaged by all means and any reservation policy should include them in a fair manner.

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  17. Dear JPN,
    I am Bhagavan,22 year old. I don't whether my age is good enough to comment on the present scenario of the political system in India or not. The public are voting again and again to the same party who has been cheating them from the decades, and if they feel the party not in favor of them they are opting another major political party expecting a good from them. But the problem remains same. The problem is not that they are selecting a party who has not fulfilling the requirements. The only problem is that there no better party which can solve their problems and serve public properly. So, I hope people will consider Loksatta as a new revolution in the present political scenario.
    But I am afraid how come a little party like this can survive in the present situations in which money matters. But I strongly believe that people don't afford to neglect a system which can change the face of India and leads it to prosperity. As an educated person, I can be aware of what Loksatta is for, but I don't think the same will prevails in the villages. As a native of a village I know, 90% of the people living in villages are not aware of what Loksatta is for? The villages in which people consider the existing major political parties only as the real parties, many people may not believe Loksatta as a fruitful system. So as fan of you, I strongly suggest you to please publicize our party in the villages and take some village- friendly classes in the non-urban areas also. The best method of doing this is, I suppose, by the educated youth, in the villages only. So plan according to that and let the youth in the villages know what is Loksatta for.
    I hope it helps. Thank you. If you want me to do something for this, its my pleasure to do so.
    Thank you
    rajbhagavan@gmail.com

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  18. JP, I guess this is pointing to you..



    News Article

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  19. Dear Dr. JP,

    I totally agree with your rational insight on the controversial reservations. I wish you to emphasize more on successfully proven system called ‘Dual education system', in developed countries in Europe. A dual education system is practiced in several countries, notably Germany, Austria and Switzerland, but also Denmark, the Netherlands and France, since, some years also in China and other oriental countries. It combines apprenticeships in a company and vocational education at a vocational school in one course (ref.wikipedia)

    I visited to one such institute called 'PORTICO', run by Fredrick, a German in Bangalore during my stay there. He has this concept of Dual education program whereby he hires kids age 15+ and trains them in carpentry and metal fabrication. They are also provided unconventional education that is equivalent to the 10 yrs of conventional system where they don't waste time learning things that are absolutely of no practical consequence. WIPRO, Bangalore helps them to provide the education system. This will help youth to acquire skills in the occupational jobs and at the same time they are well educated. If you need more information about PORTICO, I can send you some articles.

    For the readers who are not aware of such systems, for time being can refer to the following links...
    http://en.wikipedia.org/wiki/Dual_education_system
    http://www.ed.gov/pubs/GermanCaseStudy/chapter2d.html

    Vandemataram.


    With Warm Personal Regards,
    Sivangy.

    "Let us strive for Excellence - Always!"

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  20. Dear Sivangy,
    We thank you for your enthusiasm and for your interest in the important issues we are trying to tackle.

    Education is one of the building blocks of a nation's future and there is an urgent need to drastically improve the quality of education in our country.

    We are sure you must have found our articles at www.loksatta.org interesting and thought provoking.More than anything else, what they do is to make clear the reasons for India's problems and the achievability of the so called 'impossible' through simple and pragmatic measures.

    Please continue to educate yourself and try your level best to spread the word about the issues you are now aware of.If each of us could only raise our own levels of awareness, a lot of changes can be expected in our polity.

    With warm wishes

    On Dr.JP's behalf
    LOK SATTA PARTY

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  21. What do you say about this?

    http://hinduunity.org/articles/islamicmafia/mafiainvestments.html



    Around July 2000 Mr. V.Gupta, the suspended additional commissioner of Income Tax department said in one TV channel that Mafia had invested in Bollywood, hardly the electronic media or newspapers took note of it. .Recently the Indian TV channels had flashed the conversation of film star Sanjay Dutt and the mafia don Chotta Shakkeel, which was taped by Police on November 14, 2000. The conversation lasted some 45 minutes and Sanjay Dutt was asking the underworld don for Dubai or Karachi SIM cards for his mobile to avoid detection by Indian Police. But instead of arresting and keeping Sanjay Dutt who is already an accused in the Bombay serial blast case, everyone is keeping mum on it. Sanjay Dutt’s father Sunil Dutt is a leading Congress MP and was a product of the Bollywood, is saying that his son is innocent. A film producer Bharat Shah is already being prosecuted for his connection with the underworld mafia. Recent revelations indicate that the mafia invested Rs. 48 crore for the latest Hindi movies that was produced in Bollywood. With these incidents one should start thinking as to when the underworld had shown any interest in the film world? To be precise the underworld is involved in Bollywood since our independence.
    At the time of independence and the next decade, many an unknown muslims in India have become extremely rich in Kerala to Kashmir because of the assets they collected from some of the departing muslims. At that time, many Persian Gulf countries, had Indian Rupee as their currency and was totally depended on Gold smuggling to India. Some of the profits from these smuggling activities were invested in the Bombay film world. This was even before the birth of Dawood Ibrahim. Leading citizens of Dubai, like Lootah, Galadhari, etc and even the Dubai Sheikh Rashid was involved and this was depicted in the books like “Dubai” etc. With the discovery of the oil in the Gulf the nature the investment by these Gulf nationals have intensified, to cover not only the film world, but in real estate, education etc. and as no foreign investment were allowed in these areas in the fifties till the eighties, all these were in benami names, and to enforce its smooth running they had hired the Indian mafia. Because of this collaboration, the second generation of Indian mafia dons shifted their headquarters to safer heavens like Dubai, Malaysia, etc. It is rumoured that even some of the ruling Sheiks in UAE had used the services of these dons, and it is one of the reasons why they are still safe in places like Dubai.
    During Indira Gandhi’s time these smugglers like Lootah, Galadhari etc, who are Dubai nationals, had paid hefty sums to the then government and the politicians to stop further criminal prosecutions against them which were pending in various states in India. The government of India should open these old cases as most of these smugglers are also financing the Islamic terrorist activities that are going on in India. From the seventies it was an open secret that the Arab smugglers from Dubai and other Arab nationals were investing in films and real estate, but our police and politicians were in their pocket. Many of our yesteryear film stars are brought up by these smugglers who had invested in Bollywood. As per the Bombay film world personalities some of the brothels in Kamathipura in Mumbai are owned by some of the film stars of yesteryears. It is no wonder then that these film stars when coming to Dubai were found to be staying in the Hotel belonging to Dawood Ibrahim Even actors like Jitendra were seen staying in Dawood’s hotel in Dubai in the eighties. The latest revelations on the drug addict Sanjay Dutt’s liaison with the mafia don Chotta Shakeel and his earlier involvement in the Bombay serial blast should not be seen in isolation. While CBI is trying to protect Sanjay Dutt by persuading him to withdraw his confessional statement, our former Hindi film star Praveen Babi, given sworn affidavit to court giving evidence against Sanjay Dutt for his involvement in the Mumbai serial bomb blast case, and made allegations against several film stars, our investigating agencies and even America’s Central Intelligence Agency. On eight August 2002, the mafia don Abu Salem called on Star TV channel ‘Star News’ and claimed that he had put in Rs 48 crore, in to the Indian cinema’s most expensive movie “Devdas”. Its producer Bharat Shah is already being prosecuted for his mafia links along with Nasim Rizvi for the film ‘Chori Chori Chupke Chupke’. What the Indian public is not aware is that these mafia men are only front men for the Gulf nationals from Dubai and other Gulf regions, who are really putting the money for the Hindi movie production. The drug money and the terrorist funding money are extensively laundered through the banks in Dubai and an alarmed US president Bill Clinton raised this issue through US defense secretary William S Cohen during a 1999 meeting with his Emirates counterparts. US have even named some of the Dubai banks like Dubai Islamic bank etc as the centre of the money laundering activity. The Washington Post in January 2002 reported that the United Arab Emirates rulers betrayed sympathy for Osama bin Laden’s aims. Even the fake Indian currency is being brought in to our country from Dubai and these may be from the printing presses owned by the mafia members in the Gulf nations itself. Hawala money and cash from the underworld was seen diverted in to the Indian stock market and used to ramp up share prices. Newspapers in April 2001 had reported that many key Mumbai brokers made frequent visits to Dubai in the wake of stock market crisis, and they were seen making frequent phone calls to their Dubai associates. In April 2002, amid controversy over the security clearance of Jet Airways, the Department of Company affairs has ordered inspection of the promoter company of Jet Airways, known as Tail Winds Ltd to see whether any of its shares were held by any persons of Arab origin. It is now believed that the Jet Airways, India’s largest private air carrier is largely funded by Dawood Ibrahim, one of the most wanted terrorist in India. Dawood may be the front man for the Arabs, who were smugglers of gold in to India, who have become investors in Bollywood and every business in India.
    Some small examples of the many things that came to our knowledge during the stay in Bombay and in Dubai over a period of 30 years are given below. In Dubai there was a retired Police Captain, who is one of the sponsors of Dawood Ibrahim. He had even given his three-digit car number plate to Dawood Ibrahim. This lower middle class UAE national runs a video shop in Rashidiya in addition to many other businesses. and as of 1981, had produced many Hindi movies in Bombay and owns buildings in Bombay, Hyderabad and Bangalore. He has some business in Bombay and some of his interest is being looked after by a Muslim lawyer based in Bangalore. There are many buildings for the Al Fardan Real Estate in Dubai, and when some of us had invited the family of the owner Najat Adnan to stay with us in some of the Indian cities, they told us that they have buildings in all those cities. Foreign direct investment is going on in India, since independence, but our government is not aware of it. An average UAE national have extensive real estate interest in India, and a person looking for some fun, which is normal for Arabs, investing in Bollywood ensures a life of pleasure with male and female film stars. During partition, communal riots in which lakhs of Hindus were butchered and yet the post independence movies hardly portrayed the communal riots and the torture the Hindu community had undergone is not depicted in any Hindi movies. Since independence we were shown all Hindi movies which always glorify Islam, and the good deeds of muslims, and always make fun of the Hindu customs and Gods. It was no coincidence and actors like Yusuf Khan a Muslim alias Dilip Kumar was promoted and even given Pakistan’s award called Nishan-a-imtiaz or Nishan-e-Pakistan. This is not all, the number of Muslim actors were high and disproportionate, to their population as these movies were shot with Arab muslim smugglers’ funding. Many of muslim actors in the Hindi film world adopted Hindu names to hide their identity.

    Dawood who started as a driver, had grown to a very high profile mafia don, with his services being utilized by the Sheikhs of UAE, and now he has not only the Pakistani passport, but even the UAE passport, which is not issued normally to Indians. Newspapers had reported that he even employs some 30 former IB, CBI, RAW men clandestinely both within and outside India to seek their expertise on various legal matters which has time and again thwarted Indian intelligence agencies efforts to book him. According to intelligence sources, as many as 13 former senior CBI officials, 10 former Intelligence Bureau officials and seven former Research and Analysis Wing officials have reportedly been given jobs at about 2lakhs per month salary for non-productive works by Dawood Ibrahim in Dubai and in some offices in Mumbai, Delhi, Bangalore and Hyderabad. Dawood’s five brothers who are alive and four sisters operate in Dubai and own the King’s video, Moin’s readymade garments, electronic shop etc.
    Gangster Chotta Shakeel in November 2000 asked film producer Nasim Rizvi to ask our Deputy PM, and Maharastra Deputy CM to effect transfer of Inspector Pradeep Sharma and SI Daya Nayak who were very effective in controlling Shakeel’s associates in Mumbai. A Shakeel associate Nabi even filed false cases against these officers with the National Human Rights Commission. The mafia penetrated every aspect of Indian society and business as these dons are front men for the Gulf nationals. The former Judge J W Singh’s contact with Chotta Shakeel is fresh in our memory. These dons are involved in bringing plane loads of girls from Bombay for entertaining the Arabs in the hotels of Dubai. These girls are never allowed to go out of the hotels for three months till their contracts are over. If they had to go out in case of medical treatment they are taken to the clinic with a guard, and we used to get such patients regularly. These girls are allowed to go for purchase only in the last 3 days before being packed back to India.
    The new trend to cover the involvement of mafia in various funding is to use Christian businessmen in India and abroad. Another advantage is that many Christians use Hindu names and is less likely to be suspected as an operative of ISI. An example of the use of Christians as ISI agent is the involvement of one Keralite businessman called Sunny Varkey in Dubai who is being investigated by RAW as an ISI agent. Varkey, the father of Sunny Varkey was a drunkard and womanizer, ran a small school called Our Own English High School in Dubai. When he died, the whole family was about to go back to Kerala, but his son, Sunny Varkey decided to stay on and expand the business. All of a sudden, the school business expanded with external funding and he started Pakistani schools as well. Few years back he started a hospital called Welcare Hospital in Dubai, for which funding came from Pakistani bankers. He had to employ unqualified Pak nationals in the Hospital and elsewhere. His management group consists of, the wife of the Pakistani counsel general in Dubai and Indian ex. Army staff like Maj. Gen. O.P. Parmar, Col M.L. Augustine, Cap. Limbo etc. Such examples are plenty in the Gulf. Recently the Enforcement Directorate had told the Venkataswami Commission, that the monies used for production of the Tehelka tapes might have been from sources in Dubai. The aim of the Tehelka was to destabilize the Indian Government and they even employed prostitutes to trap officials. It is well known that the BJP led government is seen as a threat by the Gulf nationals and the mafia and the use of prostitutes in journalism can only germinate in the sick criminal minds of those in Dubai. The latest Hawala scam to hit the news is the 336 crore telegraphic scam now rocking Kerala. 336 crore was deposited in cash within a year in Mumbai in four small banks, namely Catholic Syrian Bank, Lord Krishna Bank, Federal Bank and Nedungadi Bank. The money was withdrawn in Kerala and Coimbatore by telegraphic transfer with in days of deposit. The Banks never followed the security norms, and it is suspected that it might have been used to finance the Coimbatore blasts in which our Deputy PM, L.K. Advani was targeted. Surya TV, a private Malayalam channel, telecast a report linking Kerala Tourism Minister K V Thomas with the Rs 336-crore hawala scandal. Kerala police raided the channel and documents were seized without preparing an inventory to destroy it in order to help the Minister. Intelligence Bureau in June 2002 revealed that atleast 66 bank officials holding key positions in southern states are likely to be booked under prevention of terrorist act for their involvement in facilitating banking channels for transaction of money to terrorists and also for conversion of fake currency for the terrorists.
    Benazir Bhutto whose graft moolah is $ 1.5 billion, for which some 22,000 pages of proof was produced in Pak courts, has buildings and business interests in Dubai. Ex. Pak PM, Shareef owns steel mill in Dubai. Benazir was convicted in Pakistan for 3 years RI on 9th July 2002, in the ARY gold case. The Pakistani ARY traders were granted a monopolistic gold import license by Benazir. The same Pakistani muslim trader in November 1998 had given a 500SJ Mercedes Benz car to the match fixing cricketer Azaruddin which we all saw in Dubai, but Azaruddin denied it. The ARY traders, who are Pak muslims, also make pendants of Hindu Gods and market it heavily in India.
    Part of the loot that was siphoned out of Pakistan by Benazir and Shareef were meant for ISI activities, and part of it finds its way to our Bollywood. There is an Indo Pakistan nexus among politicians and criminals and this can be seen only if one lives in the Gulf countries. Some of this money is invested in the print media in India, and is one reason why we see so much news about Pakistan and a lot of sympathy for Pakistan in some of the media including some TV channels. The Govt. of India has cleared of 26%FDI in print media, but decades back, already large scale funding from abroad is in place. There was a Hawala operator in Dubai who is now the President of a State Congress unit in a Southern state. Many MPs and MLAs, telephone for money through Hawala to many of the businessmen in Dubai. The capital of almost all businesses in the Gulf is taken out of India illegally. Almost every businessman is involved in some type of illegal activities, like piracy of audio and video cassettes, import of spurious items to India, collecting export incentives illegally etc they oblige these request for money by our elected representatives. Container loads of pirated audio and video cassette operation of a Kerala businessman in Dubai is around $100 million to USA. When Dubai tightened the copyright act, they signed agreements with artists and distributors in Dubai and continued their operation. The artists and businessmen had converted themselves to 180 day NRIs to save the income tax.

    It is no coincidence that Chandra Babu Naidu recommended Aga, who was the Chairman of the collapsed Charminar Bank in Hyderabad to the Wakf Board as a government nominee, even though he had criminal records, dating 30 years back and was a known card holder of Dawood Bhai. Conveniently Aga committed suicide when his name cropped up during the Parliament attacker Ansari’s interrogation. Naidu made four trips to Dubai, and helped Emirates airlines, which was finding it difficult to survive after 9/11 WTC attack to start direct flight to Hyderabad, which was considered as a security risk by many. He also helped Dubai World Trade Center to start annual computer show in Hyderabad which in my opinion should be going on the other way around by our International Trade Fair authority organising it in Dubai. Every politician in his capacity will sell our nation’s interest to outsiders. Naidu had given a contract for a rock garden in Hyderabad to a Dubai firm’s newly opened Hyderabad unit, even though in Dubai there is no rock at all for the Dubai firm to get experience.
    To stop the terrorist funding, hawala operations and Bollywood financing the Government of India should open all the old smuggling cases pending against the Arab nationals like Lootah, Galadhari etc and bring it to a logical conclusion. All details of these case files should be in the public domain. I suggest that a national commission should be established to investigate the foreign mafia involvement in the Indian film industry, real estate, Indian politics, in the print and visual media, in our educational institutions, since independence. Our politicians and bureaucrats involvement in the mafia investment in India should also be investigated.

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