Thursday, July 20, 2017

P - Innocent until proven Guilty ? Not so in India any more

Innocent until proven Guilty ? Not so in India any more
By Ram Krishnaswamy
11th May 2017

One of the most sacred principles in criminal justice system is holding that a defendant is innocent until proven guilty. In other words, the prosecution must prove, beyond a reasonable doubt, each essential element of the crime charged.

This may not be so in India in the future the way things are panning out. State will assume all Indians are guilty until the individual proves beyond reasonable doubt his or her innocence

PDS (Public Distribution System) for BPL (Below Poverty Line)

In 2012, the Indian government stated 22% of its population is below its official poverty limit. The World Bank, in 2011 based on 2005's PPPs International Comparison Program, estimated 23.6% of Indian population, or about 276 million people, lived below $1.25 per day on purchasing power parity.

Poor Indians belonging to the Below Poverty Line category were accused of double dipping and drawing more government subsidies than they were entitled to. Not surprising at all that a Neo Indian Billionaire, who spent more time in New York than India and confessed he had never visited villages in India and knew the slums of NY better, believed that by giving every poor individual and identification number linked to his or her photo, address, DOB, Finger Prints, Government of India could save thousands of crores in subsidies that were being stolen every year by the greedy poor. When fingerprints posed technical glitches during authentication Iris scans were included. In years to come it is possible that government will capture poor peoples DNA to be doubly sure they do not double dip into PDS.
Does it sound Pathetic ?

India has a culture were it is a crime to be poor and all poor people are deemed criminals and are like termites who will eat away food supplies indiscriminately. The minute there is something missing in a household in India, the blame automatically falls on the servants of the house; this is part of the Indian culture, like it or not. So it is not at all surprising that elite politicians born with silver spoons look down upon the vermin at the bottom of the food chain.

Aadhaar was issued to each and every Indian drawing rations from the Fair Price Govt shop. It was purely voluntary but not really a choice for people who needed these rations to survive and avoid starvation.

The real scenario here is that the central Govt procures the food grains, stores it and makes bulk allocation to various state governments and transports the allocation to the states. The Government spends nearly Rs 750 Billion (about US$ 13.5 Billion) which is about 1% of India’s GDP on PDS. The State Governments are in charge of all distribution through Fair Price shops (also called Ration shops) to the consumers who are BPL or Below Poverty Line Population. There are nearly 500,000 Ration shops Nation wide, creating a huge potential for leeches to bleed the system.

Blind Freddy can see that 90% of the fraud occurs in the procurement, storage, allocation, transport and distribution; meaning PDS is a flawed Govt system that is being sponged for decades; a system where the states had no control over the procurement or quality and a final distribution system of food grains by State Govts through Fair Price shops to the poor and needy over which the Central Govt had little control.

To add to this neither State or Central govt had any idea who the needy poor were as there was no database of India’s BPL Population and this meant any one could get a ration card by using influence or paying a small bribe and hitch a ride on the gravy train. More often than not it was the 500,000 ration shop owners who generated and owned hundreds if not thousands of ghost ration cards, whose rations were hoarded and sold in the black market. This means the best grains never reached the needy poor.

Neither the Central Govt nor State Govt Politicians or Babus were going to blame each other for the leaks in the system, so they blamed the last mile and have attempted to clean up the PDS by pointing fingers at the Last Mile (this is a term used in supply chain management and transportation planning to describe the transportation of goods from a transportation hub to the final destination meaning the ration shops and finally the poor people).


NREGA: The National Rural Employment Guarantee Act was passed in 2005. ( Now Called MGNREGA- Mahatma Gandhi National Rural Employment Guarantee). This is a Labour Law and a Social security measure that guarantees the Right to work. It provides 100days of paid work at Rs 100 per day for every adult in a household volunteering to do unskilled manual work. This guarantees an annual income of Rs 10,000 per annum per adult volunteering to work under the NREGA scheme. This costs the Indian Govt Rs. One Trillion or nearly US$16 Billion.

Again like PDS, NREGA was to aid the estimated 300 million poor Indians, or the BPL population mostly in Rural India living below poverty line.

So on an average between PDS and NREGA Govt of India spends around US $ 30 Billion annually to assist 300 million strong BPL Population. Whilst this looks like a gigantic amount to spend it in fact works out to US $ 10 per person or Rs 650 per annum, which is less that 2 Rupees per day per person. This is assuming that all the money goes to the poor people, In reality we can assume that at least 40% gets spent on admin, storage and transport costs and running Ration shops and gram panchayats etc and another 30% of leaks and corruption in the system. Basically this means that even though the Govt believes it is spending 2% of its GDP which is nearly US$30 billion, a poor Indian Living below Poverty line gets less that 60 paise a day.

The question is: Is this worth the effort and the cost and is this serving any purpose towards India’s growth ? There has to be a better way. We need to teach people to fish and not feed them fish.

Rural employment guarantee is similar to what is known as the dole in Australia. While dole is meant to assist unemployed survive until they find a job it also encourages people not to want to work as they receive adequate handout from the Govt to survive. To prevent this Australian Govt created the work for the dole scheme. This does not work either as dozens of people meet and stand around talking and smoking most of the day and not doing any productive work and this is precisely what I have heard about NREGA employees from friends in Rural Tamilnadu. NREGA has hurt the small farmers with small tracts of land that are mostly non profitable to cultivate and made worse by the acute shortage of casual labourers to assist with farming as they are all assembled and sleeping under the trees most of the day and collecting NREGA payments where they share their emoluments with the people who enlist them. Sad but True that middlemen are again swindling funds aimed to help the BPL population.

There has to be a better way to serve and care for the needy poor.

With Aadhaar being thrust on India’s unsuspecting BPL population, who have become dependent of PDS and NREGA, covering nearly 300 Million Indian residents, the Govt next targeted the Middle Class LPG Customers. Every Indian family needing cooking gas had to get the Aadhaar. This meant that the Govt having eliminated the cheats in PDS and NREGA aimed at the next rung of low income Indians The Middle Class; and what did they receive from the Govt ? Subsidy for cooking gas. LPG subsidy means customers had to buy LPG Cylinders for cooking at Market prices and then receive the subsidy for the Government. Indian Govt used to sell fuels meaning petrol, diesel, kerosene and LPG cooking gas at subsidized rates. However  Govt of India has decontrolled the prices of petrol and diesel, but continues with subsidy for kerosene and LPG. One wonders why LPG and kerosene prices cannot be decontrolled as well eliminating the LPG subsidy that costs the Govt as much as Rs 40,000 crores per annum. Around 15.3 crore consumers are registered with the three companies, Indian Oil (Indane), Bharat Petroleum (Bharat Gas) and Hindustan Petroleum (HP Gas), which incur a total subsidy cost of Rs 40,000 crore on providing 12 LPG cylinders per year to each consumer.
The new rule is that people with annual family income of more that Rs. 10 Lakhs per annum are not eligible for LPG subsidy and media reports suggest that over a million people have surrendered LPG subsidy

Having forcibly thrust the Aadhaar Numbers on the unsuspecting poor and middle income groups even before legislating a law for Aadhaar it was common knowledge that Aadhaar was required to get passports, driving licences, pensions, scholarships, a must to get a mobile phone, admissions to schools including kindergarten and universities and the list is endless. Whilst UIDAI claimed innocence and insisted Aadhaar was absolutely voluntary almost every govt department seized the opportunity to insist of Aadhaar number to receive that govt departments services. It became necessary for Railway tickets and almost a must for Air Travel.

This benign but ubiquitous Aadhaar has now enrolled nearly 113.3 crores (which is over 1.13 billion) of Indian residents out of a total of about 130 crores population as of March 2017 and this accounts for 99% of the Population over 18 years of age. The ones left out were children under 18. So the Govt insisted on Aadhaar for Mid day meals making Aadhaar ubiquitous for all children in India. Govt was overwhelmed by the numbers who had enrolled, that Supreme Court rulings that were issued before the Aadhaar Act in April 2017 were ignored at best.

The next Govt move to catch the crooks amongst the 113.3 crores of Indians enrolled with Aadhaar was demonetization of Rs 500 and Rs 1000. This was meant to trap Alibaba and the 40 thieves or should we say India and its 113 crore thieving poor residents.

Encouraged by the Aadhaar Act that bypassed the Rajya Sabha by taking the Money Bill Route (not that Congress, the very party that gave birth to this monstrosity called UID / Aadhaar would have done much to block it in Rajya Sabha besides creating political hurdles for the Modi govt  thus delaying the process) sneaked another legislation using the money bill route this time as part of a Finance bill, making Aadhaar Mandatory for PAN Card.

Hang on PAN card I thought was like a Tax File number and one has to be an idiot to have two PAN numbers. Who wants to pay Income Tax twice?. No Sir the Govt believes that a large number of Indians or shall we say the 113 crore Indian thieves had multiple PAN cards and the Govt had to catch them all by linking their PAN Cards with their Aadhaar numbers. The fun continues.

Not sure how true this is but we are led to believe by articles in the media  “India has approximately 19 million income taxpayers versus 250 million PAN cards, and there is no way to de-duplicate the latter without Aadhaar”. One wants to ask the Govt on what basis did the Tax department issue 250 million PAN Cards in the first place. Was PAN Card a necessary ID to apply for Driving Licence? Passports? Bank Accounts? Cooking Gas? There has to be a valid reason why 250 million Indians have a PAN Card. Surely the Govt is not saying 250 million Indians with pan cards are all criminals and thieves.

The Govt & UIDAI says to its people “If you have nothing to hide, you have got nothing to Fear”. Well 113 crore Indians have proved they have nothing to hide by trusting the Govt and Nandan Nilekani and enrolling for Aadhaar which might earn 300 million poor people about 60 paise per day in subsidy at best and the rest are guinea pigs who have put their heads on the guillotine as they are deemed guilty until they themselves prove they are innocent.

As for Nandan Nilekani he has achieved his goal of enrolling 113 crore Indians residents through lies and deceit claiming Aadhaar was not mandatory but was ubiquitous. Now one may ask what is in it for NN?  UID has the potential to generate about US$ 60 billion worth of business for the Private sector in India in the near future and NN and his hand picked friends have positioned themselves well in Govt bodies to create new opportunities to rake in billions.

That aside, while now the Govt has the tool to investigate 113 crore corrupt Indians, the mega Crooks like Lalit Modi and Vijay Malllya are hiding overseas and Modi Govt is reluctant to investigate and charge the likes of Robert Vadra, Suresh Kalmadi for corruption. Nor does the Modi Govt want to talk about bringing black money stashed in Swiss accounts as promised during elections.

World wide it is common knowledge that just 1% of the Population holds and controls 50% of a nations wealth and these are the very people, the Rich, Powerful and Corrupt Indians plus the criminal elements, underworld figures and genuine money launderers who have not enrolled for Aadhaar (Excluding a few hundred Activists opposing Aadhaar).

This makes India  a True Orwellian state where “all people are equal but some people are more equal than the others” meaning the 1% above 18 years age who do not have Aadhaar numbers yet are free to rule the roost and carry on their merry ways.