Chankya's Chant (47 page)

Gangasagar and Chandini were at Sanchar Bhawan, the headquarters of the department of telecom. ‘Telecom licences were issued in an arbitrary fashion at fees that were low, even going by ten-year-old benchmarks,’ revealed the telecom minister, an old hand of the ABNS.

‘Big deal. One could argue that one individual’s perception of value is different to another’s,’ argued Gangasagar.

‘But subsequently, the company that obtained the new spectrum allocations sold their stake to outside investors for a huge profit,’ said the telecom minister.

‘Isn’t it possible they enhanced shareholder value by building a business in the interim?’ suggested Chandini.

‘In twenty-four hours?’ asked the telecom minister quizzically.

Gangasagar and Chandini were at Shastri Bhawan, the headquarters of the ministry of petroleum and natural gas. ‘Oil exploration rights were handed out to a single company for a value prescribed as per law,’ said the petroleum minister, an ABNS winner from Bijnor constituency.

‘What’s wrong with that?’ asked Gangasagar.

‘The exploration rights were handed out on 24 July.’

‘So?’

‘An internal memo shows that the exploration basin had already been drilled by the public sector oil corporation.’

‘And?’

‘They had already discovered oil there on 23 July.’

Gangasagar and Chandini were at Krishi Bhawan, the headquarters of the ministry of agriculture. The minister was Daula Hassan Bhatti, Major Bedi’s Muslim-Jat experiment in Meerut. He had won his election with a margin of over two hundred thousand votes.

‘Large quantities of fodder and fertiliser were procured during the term of the previous government,’ said the agriculture minister quietly, afraid of being overheard by his secretary.

‘That would be expected,’ send Chandini. ‘Any government that wishes to hang on to votes must subsidise fodder and fertiliser to keep farmers happy.’

‘But did we subsidise fodder for cattle in America and western Europe too?’ asked the agriculture minister.

‘What do you mean?’ asked Gangasagar.

‘If I count the total head of cattle subsidised by the government, it adds up to the total cattle population of India, America and western Europe added together! They subsidised farmers and cattle that did not exist!’ revealed the agriculture minister.

‘Could any of these deals have happened without the finance minister’s complicity?’ asked Chandini. Ikram and Agrawalji shook their heads. That would have been impossible. Chandini and Gangasagar mulled over the revelations in silence. At length she asked him, ‘What do you intend to do with this information? Reveal it to the press and bring down the government?’

‘On the contrary. Of what value is it to bring down this government when we are in it? And that, too, so early in the day? Information is only of value when it isn’t in the public domain. I shall safeguard it and use it to bargain,’ said the shrewd Pandit.

‘So you’ll talk to the Prime Minister and secure the finance minister’s resignation on account of the four scams?’ asked Chandini.

‘No. I shall not secure the finance minister’s resignation on account of the four scams,’ said Gangasagar, blandly.

‘Why not?’ asked Chandini, wondering why they had spent a fortnight digging up dirt if it wasn’t to be used.

‘I shall secure the finance minister’s resignation on account of one scam, not four! I shall use the remaining information only as and when I deem appropriate. When a full house is adequate, why should I use straight flush?’

‘Congratulations on taking over as minister for external affairs, Chandiniji. I know that you will work hard and go even higher,’ said a wellwisher as Chandini moved around the room shaking hands.

Gangasagar was standing within earshot. He turned around to his faithful patron Agrawalji who was munching on a stuffed potato. ‘Funny isn’t it?’ he said to Agrawalji.

‘What’s funny about you having realised your dream of making this humble girl into India’s minister for external affairs?’ asked Agrawalji.

‘Here’s what’s funny, my friend. She goes to an
external
country for an education, has an
affair
, gets pregnant, and as a reward I make her minister for
external affairs
!’

‘Is the honourable minister for external affairs aware that our national flag was displayed even after sundown at the Indian Embassy in Poland in violation of Section 2.2 subsection (xi) of the Flag Code of India? Will the honourable minister assure this House that she shall take corrective action.’

‘Mr Speaker, sir, I can assure the House that I might definitely take action.’

‘Mr Speaker, sir, is the honourable minister for external affairs ready to admit that we have allowed Pakistan to gain the upper hand in the recent foreign secretary-level talks in Geneva? Has the minister learnt anything from the mistakes made there?’

‘Mr Speaker, sir, I respectfully submit that I’m willing to make some more mistakes if the honourable member is willing to learn from them.’

‘With permission of the Chair, is the honourable minister for external affairs aware that alcoholic beverages were served within the premises of her ministry’s South Block offices even though it was on a dry day?’

‘Mr Speaker, my own view is that alcohol is certainly not the answer to anything. It simply makes one forget the question. By the way, what was the honourable member’s question?’

‘Mr Speaker. The ministry of external affairs seems to be picking its way through a minefield of international diplomacy. Unfortunately, the honourable minister lacks experience and is stumbling like a child in the dark.’

‘Mr Speaker, it is my understanding that children in the dark make accidents whereas accidents in the dark make children. I presume that’s how we’ve all reached here!’

Chandini sat down as the entire Lok Sabha erupted in an explosion of laughter. It was evident that the new girl was not someone to be messed around with. Geoffrey Hemingford had tried, much to his regret.

The chairman of the Central Board of Direct Taxes— the CBDT—sent two files to the finance minister prior to the latter’s resignation. These issues were hot potatoes and he wanted them signed off by the minister himself.

The first file related to R&S, and given the close relationship between the minister and Rungta, the chairman of the CBDT decided to get a clearance from the finance minister directly.

Hon’ble Finance Minister. Investigations into the activities of R&S have revealed several instances of financial irregularity. Various items on the expense side seem to have been inflated, specifically with the intention of reducing their taxable income. In addition, it seems that private partnerships have been created with a view to parking of profits. Various items on the income side have been deferred, seemingly with a view to deprive the tax authorities of revenue. Certain transactions—particularly sale and purchase of assets—have been carried out at questionable valuations, thus further reducing their tax liability, at least on paper.

The memo was double-spaced and continued on the next page.

Given the circumstances, I seek your advice on how the above matter should be handled. Thanking you. Chairman, Central Board of Direct Taxes.

The second file concerned overall tax rates for the common man—a political decision—and once again, the chairman of the CBDT had decided that seeking ministerial clearance would be was prudent.

Hon’ble Finance Minister. Income-tax returns filed for the last fiscal year have shown that the present burden of
income tax on the lowest income-earners seems to be the hardest. Last year’s economic slump has resulted in several taxpayers going into bankruptcy or insolvency. The above is particularly true of salary-earners who also have loan commitments such as home mortgages to be met. During internal deliberations with income-tax commissioners it has been felt that the department ought to take a lenient view with ordinary wage-earners this year.

As before, the memo was double-spaced and it continued on the next page.

Given the circumstances, I seek your advice on how the above matter should be handled. Thanking you. Chairman, Central Board of Direct Taxes.

The files arrived at North Block an hour later. The finance minister pulled out his fourteen-carat gold Waterman from his homespun cotton shirt pocket and made a note below the first memo. He knew that he could not protect R&S officially. He needed to be perceived as impartial, at least on paper. His jotting below the memo read:

I suggest they be investigated thoroughly and you should take whatever action you deem appropriate to recover taxes that are legitimately due to the government. Regards. Finance Minister.

The second one was relatively easy. He had discussed the matter with the prime minister and it was evident that they would need to give some concessions and tax breaks to salary-earners. His jotting below the second memo read:

We need to be sympathetic and gentle in our dealings with them. Without their support, no government can hope to remain in power. Suggest that adequate flexibility be shown. Regards. Finance Minister.