Case Study: N.Vittal

A Maharashtrian, he was born in Thiruvananthapuram and was educated in Tiruchirapalli and Chennai (then called Madras).Graduated with B.Sc. (Hons.) in Chemistry degree from Loyola College, Madras – 1958.

Belonging to the Indian Administrative Service 1960 batch, he is one of the eminent public servants of India, who has held important positions in the Government of India, most prominent of which was that of the Central Vigilance Commissioner.

After a short time as Lecturer in Jamal Mohammed College, Tiruchirapalli, he joined the I.A.S on 16 May 1960 and was allotted to the Gujarat Cadre. In his career of more than 35 years, Shri Vittal has held a number of assignments at the State Government, Central Government. As Secretary to the Government of India, he initiated policies for boosting software, setting up software technology parks and strategic alliance with the industry. He was successful in introducing the electronics hardware technology Park scheme, whereby, mini Hongkongs and mini Singapores could be created in India to boost manufacture of electronic hardware. He made the Department of Electronics a frontrunner in adjusting to the new industry-friendly policy, encouraging Foreign Direct Investment (FDI) from IBM, Motorola etc. As Chairman, Telecom Commission he initiated the process of liberalization in the telecom sector and played a major role in getting the National Telecom Policy 1994 approved and announced.

Few more major achievements during his career are:-

· Revival of the Kandla Free Trade Zone

· Opening of the Dahej Port in Gujarat

· Emergence of the Gujarat Narmada Valley Fertiliser Company (GNFC) not only as an efficient business enterprise but also as a model for what a public sector unit can do for backward area development especially in education, health, culture and environment, management. GNFC was a zero pollution plant.

· Setting up the Narmada College of Science and Technology and Commerce, Bharuch, the first English medium college in South Gujarat, teaching electronics, computer science and chemistry.

· Setting up of new organizations e.g., as Industries Commissioner in Gujarat, responsible for Gujarat becoming the first state in the country to be fully covered with District Industries Centre; Setting up of the single window service for industry promotion bureau which was adopted later by other states; Setting up of Entrepreneurship Development Centre; As Secretary (Civil Supplies), set up Gujarat State Civil Supplies Corporation; As Additional Chief Secretary (Home), initiated proposal for setting up the Gujarat Police Housing Corporation.

· As Secretary to the Government of India, initiated policies for boosting software and set up software technology parks and forged a strategic alliance with the industry. Also was successful in introducing the Electronics Hardware Technology Park scheme, whereby, mini `Hongkongs’ and mini `Singapores’ can be created in India to boost manufacture of electronic hardware. Made Department of Electronics a front runner in adjusting to the new industry friendly policy, encouraging foreign direct investment from IBM, Motorola etc.

· As Chairman, Telecom Commission initiated the process of liberalisation in the telecom sector and played a major role in getting the National Telecom Policy 1994 approved and announced.

· As Chairman, Public Enterprises Selection Board initiated measures for greater transparency and speed in the functioning of the PESB. Headed the committee on guidelines which resulted in the cancellation of 696 obsolete guidelines hampering the autonomy of the PSEs.

Widely travelled, his interests also lie in application of management principles in organization, in the public and private sector. He has written more than 400 articles on various subjects relating to management, public relations, human resources development, management of technology, public sector management etc. in many journals and magazines.

His values

He has always fought for transparency in the system. The author of his biography N.Ram, Editor-in-Chief,The Hindu , says that what had attracted him to Mr.Vittal was his handling of the Telecom sector long before the hype about IT began. Mr Ram recalled Mr Vittal's tenure as Chief Vigilance Commissioner and said superintending the straightness of the CBI was as difficult a job as checking corruption.

According to Mr Vittal the strength of an IAS officer is his ignorance. It allowed him to learn to function better. His long experience in the Government taught him that each individual had something to give that could bring joy.

A close associate of Mr.Vittal and former civil servant of the Gujarat cadre, G.Sundaram, said Mr.Vittal believed in transparency and putting politicians in their place.

He is actively interested in management and cultural activities and has membership in the following social / cultural / professional associations: -

· President (1994–1997) Loyola Alumni Association (North India Chapter), New Delhi

· President (1991–1997) Shri Shanmukhananda Sangeetha Sabha, New Delhi

· Member (1991–1998) Board of Governors, Academy of Human Resource Development, Ahmedabad

His integrative work as a writer

Widely travelled, he is also interested in application of management principles in organisation in the public and private sector. He has written more than 400 articles on various subjects relating to management, public relations, human resources development, management of technology, public sector management etc. in many journals and magazines. These include Economic and Political Weekly, Economic Times, Financial Express, times of India, Business India, Journals of IIMA, LBS National Academy of Administration, HCPS, RIPA, IIFT etc. He is a regular columnist for The Economic Times and the Web magazine "Rediff on the Net." (www.rediffindia.com) The books written by him include:

· India Incorporated: Reflections on the Indian Electronics Industry (1994)

· The Vicious Cycle of Vittal's Law,(1994)

· The Red Tape Guerrilla(1995)

· Fighting Corruption and Restructuring Government (2000)

· Public Sector Management & Governance (2001) – with S. Mahalingam

· Information Technology: India's Tomorrow (2001)

· Ideas for Action (2002)

· Vittal’s Vital Management Mantra (2004)

· Maharastrians in Tamil Nadu (2004)

· Musings on Governance, Governing and Corruption (2004)

· Technology and a Vision for the future (2004)

· More musings on Governance, Governing and Corruption (2005)

· Roots of Effective Governance (2007)

· Corruption in India : The Road block for national prosperity (2002)

· Roots of effective governance (2007)

These varied titles for his books tell us what kind of a thought leader he is and how wide is his scope of thinking is.

His idea of a good leader

In his letter to Narendra Modi he wrote, "You have set before our nation an excellent example of what can be achieved if absolute political integrity and commitment to good governance are combined in a leader. You have also shown how openness to new ideas and political courage to take even unpopular but sound decisions in the interest of development and good governance can work wonders."

Reference Articles

1) http://en.wikipedia.org/wiki/N._Vittal

N. Vittal (born 31 January 1938), belonging to the Indian Administrative Service 1960 batch, is one of the eminent public servants of India, who has held important positions in the Government of India, most prominent of which was that of the Central Vigilance Commissioner. A Maharashtrian, he was born in Thiruvananthapuram, the capital of the Indian state of Kerala, and was educated in Tiruchirapalli and Chennai (then called Madras).Graduated with B.Sc. (Hons.) in Chemistry degree from Loyola College, Madras – 1958.

· Development Commissioner, Kandla Free Trade Zone, Ministry of Commerce, Government of India

· Industries Commissioner, Government of Gujarat

· Secretary, Food and Civil Supplies, Government of Gujarat

· Chairman, Gujarat State Civil Supplies Corporation, Government of Gujarat

· Secretary, Health and Family Welfare, Government of Gujarat

· Managing Director, Gujarat Narmada Valley Fertiliser Company Limited

· Additional Chief Secretary (Home), Government of Gujarat

· Additional Secretary, Department of Atomic Energy, Government of India

· Secretary, Department of Electronics, Government of India

· Chairman, Telecom Commission and Secretary, Department of Telecommunication, Government of India

· Chairman, Public Enterprises Selection Board

· Central Vigilance Commissioner

His experience of more than 35 years covers a wide spectrum with focus on industrial administration, science and technology and security. As Secretary to the Government of India, he initiated policies for boosting software, setting up software technology parks and strategic alliance with the industry. He was successful in introducing the electronics hardware technology Park scheme, whereby, mini Hongkongs and mini Singapores could be created in India to boost manufacture of electronic hardware. He made the Department of Electronics a frontrunner in adjusting to the new industry-friendly policy, encouraging Foreign Direct Investment (FDI) from IBM, Motorola etc. As Chairman, Telecom Commission he initiated the process of liberalization in the telecom sector and played a major role in getting the National Telecom Policy 1994 approved and announced.

Few more major achievements during his career are:-

· Revival of the Kandla Free Trade Zone

· Opening of the Dahej Port in Gujarat

· Setting up the Narmada College of Science and Technology and Commerce, Bharuch, the first English medium college in South Gujarat, teaching electronics, computer science and chemistry.

· Setting up of new organisations e.g., as Industries Commissioner in Gujarat, responsible for Gujarat becoming the first state in the country to be fully covered with District Industries Centre; Setting up of the single window service for industry promotion bureau (IndexTB) which was adopted later by other states; Setting up of Entrepreneurship Development Centre; As Secretary (Civil Supplies), set up Gujarat State Civil Supplies Corporation; As Additional Chief Secretary (Home), initiated proposal for setting up the Gujarat Police Housing Corporation.

· As Chairman, Telecom Commission initiated the process of liberalisation in the telecom sector and played a major role in getting the National Telecom Policy 1994 approved and announced.

2) http://www.hindu.com/2006/04/11/stories/2006041117260400.htm

CHENNAI: Launching a biography of former Chief Vigilance Commissioner N.Vittal here on Monday, N.Ram, Editor-in-Chief,The Hindu , said such books gave a glimpse into lives of men who fought for transparency in the system.

Talking about corruption and poor administration were important, though little had changed in the system that continued to shield some people, particularly the VIPs, "who were provided immunity from proper investigation under the law of the land." The odds were against the honest, Mr.Ram said. He cited the Bofors case as an example where investigations were less than honest. "The executive branch continues to interfere in overt and covert ways."

What had attracted him to Mr.Vittal was his handling of the Telecom sector long before the hype about IT began. Mr.Ram recalled Mr. Vittal's tenure as Chief Vigilance Commissioner and said superintending the straightness of the CBI was as difficult a job as checking corruption.

The book, `Saadhanayaalar N. Vittal', was easily accessible and dealt only with a small part of Mr.Vittal's life. However, it allowed a glimpse of a man who was a thinker. Mr.Ram called for more such books that would prompt a discussion.

Mr.Vittal said for him the positions he occupied were a learning experience. "The strength of an IAS officer is his ignorance." It allowed him to learn to function better. His long experience in the Government taught him that each individual had something to give that could bring joy.

A close associate of Mr.Vittal and former civil servant of the Gujarat cadre, G.Sundaram, said Mr.Vittal believed in transparency and putting politicians in their place.

Charukesi, the author, shared his experiences in writing the book.

The programme was organised by Madras Book Club.

Mr. N. Vital, IAS serves as the Non-Executive Chairman of Aster Teleservices Pvt. Ltd. Mr. Vittal was the Central Vigilance Commissioner. He initiated the concept of Software Technology Park and liberalization of telecom and Ministry of Information Technology, with an experience of over 43 years in the field of public administration and Industrial Management. He served as the Chairman of the Public Enterprises Selection Board. Mr. Vittal has been a Member of Advisory Board at Micro Technologies (India) Ltd. since July 2006. He serves as a Trustee at The George Foundation.

3) www.isical.ac.in/~iwdc2004/vittal.pdf‎

Shri N Vittal is from the IAS cadre 1960 batch. He has held the

appointments of Chairman, Telecom Commission and Secretary,

Department of Telecommunication, Government of India, Chairman, Public

Enterprises Selection Board and before retirement his last appointment was

Central Vigilance Commissioner.

His experience of more than 35 years covers a wide spectrum with focus on

industrial administration, science and technology and security. As Secretary

to the Government of India, he initiated policies for boosting software,

setting up software technology parks and strategic alliance with the industry.

Also he was successful in introducing the electronics hardware technology Park scheme, whereby, mini

Hongkongs and mini Singapores could be created in India to boost manufacture of electronic hardware.

He made the Department of Electronics a frontrunner in adjusting to the new industry-friendly policy, encouraging foreign direct investment from IBM, Motorola etc. As Chairman, Telecom Commission he

initiated the process of liberalization in the telecom sector and played a major role in getting the National Telecom Policy 1994 approved and announced.

His published works include - India Incorporated: Reflections on the Indian Electronics Industry (1994), The Viscious Cycle of Vittal's Law,(1994) The Red Tape Guerrilla(1995), Fighting Corruption and

Restructuring Government (2000), and Information Technology: India's Tomorrow. He has edited Export

Processing Zones in Asia -Some Dimensions published by Asian Productivity Organization (1977).

He is a regular columnist for the Economic Times and the Web magazine Rediff on the Net. He is included in the list of "Fifty men and women who shaped the economy" in the fifty years after India's independence by the Business Today. He is the Honorary Fellow of the IETE

4) CVC needs more powers, says N Vittal

TNN | Aug 30, 2002, 11.41 PM IST

NEW DELHI: Central Vigilance Commissioner N Vittal on Tuesday said the commission should be given more powers so that it could fight corruption in public offices more effectively. He stressed the need to remove restrictions in the functioning of the commission.
He was addressing a select gathering of public sector enterprise (PSE) chiefs at the Standing Conference of Public Enterprises (SCOPE) auditorium here, on the occasion of the release of a booklet Vigilance Management in Public Sector Enterprise — Role and Functions of the CVC and his farewell ceremony organised by SCOPE.
Vittal said the credibility of the Central Vigilance Commission (CVC) has gone up during the last few years. This was done by introducing transparency in its decisions. A number of steps have now been taken to ensure transparency. These include creation of a website for the public, staff members and the PSEs for quick access to instructions and circulars, and holding of regular vigilance awareness meetings and awareness weeks. As a result, there has been a rise in the number of complaints registered against public servants.
SCOPE chairman D K Varma referred to the fundamental differences between the style of functioning of PSEs and government agencies. Regular clashes are reported between the PSEs and the bureaucrats, as a result of which the commercial decisions on which the PSEs have to depend are often disturbed. With globalisation taking the centrestage in commercial activities today, the PSEs are under compulsion to reorient themselves constantly, he said. Their functioning has been made all the more difficult by the divestment culture set in motion. Hard, transparent and effective decisions, therefore, are vital today, he said.
Keeping this in view, said Varma, SCOPE had been stressing the need to set up a framework of vigilance in the contemporary corporate governance, a fact the CVC has always accepted. Varma said that ensuring a benchmark of ''good corporate governance and business ethics'' is of paramount importance today. This can be done through result-oriented professionalism. The concept should be instilled in the board of directors, he added.

5)

Ex-CVC N Vittal praises Narendra Modi for 'unpopular decisions'

http://archive.indianexpress.com/news/excvc-n-vittal-praises-narendra-modi-for-unpopular-decisions/1010792/

Former Chief Vigilance Commissioner (CVC) N Vittal praised Gujarat Chief Minister Narendra Modi for taking politically unpopular decisions, but bemoaned that there is a general lack of political will in the country to rein in corruption.

"Politics is all about muscle and money power. All political leaders pretend to fight corruption. But they exercise political will only when there is a vote factor or there is no alternative for a difficult situation," he said.

He was addressing a gathering on the theme 'Ending Corruption: How to Clean up India', which is also the title of his recent book.

Vittal said Gujarat was fortunate, as compared to other states, to have a chief minister like Modi who had the political will to take some unpopular decisions.

"He (Modi) was the one to say that we will give electricity in all villages, but people will have to pay (the bill), whereas in some states it is promised for free," Vittal said, referring to states like Punjab and Andhra Pradesh.

"A committed leadership with integrity makes a lot of difference," said the former IAS officer, who served in Gujarat during his decades-long career as a bureaucrat.

Vittal, who was CVC from 1998 to 2002, said 2010 was the year of mega scams as it saw scandals related to 2G, CWG, and Adarsh Housing Society.

The next year (2011) generated a strong reaction to these scams in the form of agitations by social activists Anna Hazare and Baba Ramdev.

Comparing corruption in India with a patient suffering from multiple organ failure, he said the country requires to open fight on several fronts to curb the menace.

"The country is having a multiple organ failure. Such a patient is treated by a set of competent doctors. Who are the doctors who can save the country? They are constitutional bodies like judiciary, Election Commission (EC), Comptroller and Auditor General (CAG) and an organisation like CVC," Vittal said.

6) http://www.samachar.com/Modi-showcases-testimonials-from-Justice-Iyer-N-Vittal-mjrtLTaafge.html

Narendra Modi showcases testimonials from Justice Krishna Iyer, N Vittal ( only selected paragraphs have been taken)

Gujarat chief minister Narendra Modi, who has launched a "Vivekananda Yuva Vikas Yatra" in the run-up to the assembly elections due later this year, has now showcased letters written to him by former Supreme Court judge VR Krishna Iyer and former chief vigilance commissioner N Vittal in his praise.

Modi, who turned 62 on Monday, wrote on his blog: "Today, I am sharing some self-explanatory letters in front of you. In the midst of these mistruths, it will be very easy to figure out what the truth is. "

In the second letter, Justice Iyer writes, "You are a super patriot and your stature is beyond any particular party. Do continue the national mission you have undertaken. Indian history of the 20th century will not be complete without an excellent reference to the majestic contribution you have made in the field of Indian Energy Unlimited."

In his letter to Modi, former CVC N Vittal writes, "You have set before our nation an excellent example of what can be achieved if absolute political integrity and commitment to good governance are combined in a leader. You have also shown how openness to new ideas and political courage to take even unpopular but sound decisions in the interest of development and good governance can work wonders."

An interview.

7) http://www.rediff.com/news/2001/mar/15inter.htm

The Rediff Interview/ Central Vigilance Commissioner N Vittal

'India's security has been compromised'

Central Vigilance Commissioner Nagarajan Vittal is a Maharashtrian settled in Tamil Nadu who is fluent in Gujarati. "I want to memorise 700 shlokas of the Gita. I have completed the first four chapters," says 63-year-old Vittal, who is currently in the hot seat after having just concluded investigations into Indian defence deals between 1989 and 2001. He was to send his report to the government at the end of March.
But the Tehelka expose has made him change his plan. He will now go through all the facts and allegations brought out by the web site.
In an exclusive interview to Senior Editor Sheela Bhatt, recorded before Defence Minister George Fernandes resigned, he angrily spoke about the government's lack of initiative to cleanse the system. Vittal now wants the government to immediately release his preliminary findings for the benefit of the public, by tabling the report in Parliament.
As the CVC, what's your reaction to the Tehelka revelations?
People are shocked. Many retired service chiefs themselves have said that right from 1947, corruption existed in defence deals. So corruption is like nirgun brahma… everywhere. One person in the Jain hawala case said, 'I have taken money,' but still he was not convicted. Krishnamurthi was hounded for years, later the court discharged him because the CBI could not produce evidence to frame charges against him.
The Delhi high court said that at the time of filing nominations, candidates should file an affidavit to record their criminal records. Now the government is going against the decision in a higher court. Why? To protect the criminals?
The Tehelka exposure happened because systematically our government encourages corruption. Forty per cent of India's GDP is black money. Rs 58,000 crores come from non performing assets and when I asked the Reserve Bank of India to put up the names on their web sites -- these names are respectable people of society -- the argument given to me was that chapter III of the RBI manual and Article 14 of the Constitution does not allow them. Why don't you change the Banking Secrecy Act?
India is a corrupt country. We are 69th on the list of 90 countries. All the cash seen in videos is nothing but unaccounted money.
What about the corruption in defence deals?
It hurts, because it is the issue of national security. But corruption has existed in defence deals since the day India became independent. There was an air of secrecy in defence deals. It is said that grandma's gown covers a multitude of sins. In the same way, this secrecy was covering a multitude of corrupt defence deals.
We were asked to inquire the deals after 1989. We were asked to look into:
1. Whether there were middlemen after 1989 too.
2. 20 allegations made by Jayant Malhoutra, MP.
3. Rear Admiral Suhas Purohit's allegations in court about corruption in the navy and;
4. Lastly, we were asked to examine the deals of purchases over Rs 75 crores from April 17, 1989, when the decision to ban middleman was taken.
Mr Fernandes spoke to me over the telephone on February 6, 2000. A formal communication came to me from the ministry of defence on February 14. On August 7, 2000 we submitted the preliminary reports and we were about to finalise the report when this Tehelka thing happened. So now we will go in much more detail. Our report is a secret.
Tehelka used a modern method while the CVC used the standard method of checking files. Crooks are cleverer. They don't put their names on paper. As CVC, I have found that ministers, secretaries and chairmen are not touched, only lower clerks are punished.
Do you have the power to take cognisance of Tehelka's exposure?
Yes. Why not? One, (we can ask) the defence secretary what actions they have taken? Asking the facts of the case. We will study whether it fits into our terms of reference. We will ask Tehelka whether they have more information. We have examined many retired officials like generals and admirals. We have gone through 400 defence files. We sought information from the Central Bureau of Investigation and Information Bureau also. We also met some senior retired officers and media people. Based on that we have come to the conclusions.
Even though the CVC report of the defence deals is a secret document, considering the fact that the whole inquiry was ordered in response to the comments made by Jayant Malhoutra, member of Parliament in the Rajya Sabha -- it's only now fair to let Parliament know what has come out of the inquiry. This is necessary in context of Tehelka's expose. This will provide the total perspective to the people of this country to understand what are the ground realities in defence purchases.

What's the modus operandi in defence purchases?
The modus operandi is, I think, like this. Quite a few retired army, navy and air force officials probably become middlemen and contact points. Because in the armed forces there is lot of respect for seniority and hierarchy etc. They are able to influence. They have access. They have credibility. They have information. A person who has retired from the services knows a lot more about the actual need.
Various people have now been suspended. Who are they? What's their trump point? Of course, they are in a position to know what the need of the army is. They had the insider's knowledge, they had the advantage of seniority. And generally seniority is given respect in the disciplined forces. And they provide access, that's how the middleman operates!
Isn't it objectionable?
Middlemen are not only in India. All over the world, middlemen exist and kickbacks are given to them. It is a norm. A given thing. What has happened in our case is that the policy of 1989 says we will not allow middlemen in defence deals. That they will not be open. As a result, the whole process has gone underground. There is no transparency at all. The Bible says the path to hell is paved with good intentions. And that is what has happened.
You have just completed the mega inquiry into defence deals, are you surprised by the revelations?
I am not surprised at all. Not at all.
Why?
Because that's the truth! Whatever is exposed is basically the truth. And it's not that it's happening in 2000 or 2001, it was on right from 1947. I am only quoting a retired chief executive of the army. Read the book Foul Play, you will find how second-hand and broken jeeps were repainted and purchased when V K Krishna Menon was defence minister. We have heard about Bofors and HDW and so many other deals.
What's the major issue in defence deals?
The issue I reinforce in defence was the lack of planning. When the world was divided between the two superpowers we were with the Russians, we may call ourselves nonaligned but for all practical purposes we were in the Russian camp. We were getting lots of aid from Russia with respect to defence.
In 1990, the Soviet Union collapsed. Should not someone in 1990 have thought about the next 10, 20, 30 years? How would India meet its defence requirements? Instead, we are still importing. Look at China, they are a little bigger than us. But they have a military industrial complex. We don't have it. They are exporting arms to Pakistan, Saudi etc. What are we doing? We are the biggest importers.
So I wrote to the defence minister and defence secretary. Should not somebody have kept a 30 years perspective and thought what should we do to become self-reliant? Nobody is responsible because no one raised the question! Why is it that 11 years after the collapse of the Soviet Union, we don't have a strategy to meet our defence requirement. Why? Who will do that?
Is there a scandal behind continuing with imports?
I don't know whether you can call it a scandal or not.
But why was it not done? I want a military industrial complex because there are many technologies which are used in both, military and civil. Particularly information technology. We should consciously develop this technology, instead we are thinking of export only.
You have just concluded the inquiry and now this latest exposure, we want to know from a concerned person like you: Is India's national security being compromised?
YES! I would say yes. It is being compromised. Definitely. Why not? This deals show India's defence security has been compromised. I can't reveal more information because it will put somebody in difficulty.
But how?
One thing is to the extent we import things we are sacrificing and hurting our indigenous efforts. For example, I am told in certain defence equipment where we have developed our indigenous technology, an attempt is being made to import the technology which will mean we will lose Rs 3,500 crores.
Whatever we have developed through indigenous technology and are using successfully that will be set aside and we will be paying about Rs 3,500 crores to other countries by way of the purchase of equipment. Even though India has brains and scientists and technology development, we are sacrificing our own technology at the altar of imports aided by corruption.
Can we talk about some deals... the Baraks and Su-30s?
I don't want to say anything more. Whenever we come across any such complaints we write to the defence secretary and get a reply. We don't poke our nose unnecessarily. Because the CVC can become a convenient excuse for avoiding decisions. Therefore, one of the first things I did -- on February 14, 2000 -- when the task was given to me to inquire into defence deals was to write to the defence secretary.
I wrote to him that merely because the CVC inquiry was on I don't want the nation's security to be compromised. People in the services and others will say the CVC report is pending so we will not take any decisions. Because then they can blame it on the CVC. After that I raised this issue. We are still dependent -- 11 years after the collapse of the Soviet Union. Why? People should raise this issue. Who is taking care of us? Corruption is one aspect. Look at China. Why are we not exporting?
Why is it that we are still the biggest dumping ground, and are importing technology? When we have Indian technology, why do we want to enter a deal which will mean the loss of Rs 3,500 crores?
This information is given to me by somebody, I will have to inquire into the matter. But then, the decision is of Rs 500 crores, a potential loss because of the likely, sacrificing of Indian technology. These are the deals which are probably not yet finalised. They are very hot in the army. I don't know the precise description of the equipment.
Is there any impact of your ongoing inquiry on the deals?
Ask others. Because, it is said that a husband whose wife is unfaithful is the last man to know! Similarly, the CVC will be the last person to know.
Some files were missing from the defence ministry… what happened?
See the decision was taken that no middleman will be allowed In defence deals, that was a top secret file. That was missing, that they will not give me. I made it public, and I raised an issue with (T S R) Prasad, then defence secretary, now the Cabinet secretary. Then they started the search, and found the file in a cupboard in the barracks near South Block, which was not opened in the last nine years.
Don't you think you can do a lot in the current situation?
Two days back, I was invited at 1.30 pm at the Imperial hotel to watch the video. I said I'll not come. For the simple reason that I was making an inquiry into defence deals. If I went, it would appear that I was officially promoting the whole thing. It was good I didn't go. The immediate reaction was that it was a political conspiracy, it had political implications. But then I didn't keep quiet, I saw it and downloaded it.
I will be taking up this matter with the ministry of defence, we are going to examine this, and make an addition in our second report. We will examine the evidence value so that whatever we recommend should be legally tenable.
How do you see the future?
I met the PM on February 15 and spent 35 minutes. I gave him the plans to clean up the country. I asked him: 'Can't you be the Gladstone of India?'
Gladstone was British prinme minister for four terms and made drastic changes. Because you have the credibility you can do it. First, get rid of black money. Second, prevent criminals from entering politics, third, the nexus between corrupt politicians and corrupt bureaucrats should be cut.
For some 3,000 sensitive posts neutral committees should be appointed. The officers should not be moved for three years. Then reform the income tax department. There are 130 exemptions. They should be reduced to zero. Two thirds of the Act pertains to exemptions. There is no tax for (income) up to Rs 2 lakhs and (for income) above it a 20 per cent flat tax should be charged. Agriculture income should be brought in the net. Every Indian who earns more than Rs 2 lakhs should pay tax. Customs and excise are one of the corrupt departments. They have discretionary powers.
Kit-Kat -- is it a chocolate or a biscuit? A fellow (a custom officer) in Mumbai has taken a decision that it's a biscuit so the company's tax is saved. Officers say, "I am using my discretionary powers as per the law."
Corrupt officers are making money because of such powers. Corruption flourishes only because there is less risk and more profit. The Law Commission has drafted an act to confiscate the property of corrupt public servants. Since the last two years the government is sitting on it. There is the Benami Transaction Prohibition Act 1988, but so far no guidelines have been issued. I wrote to the government (asking them) to issue the guidelines, they are saying we want to withdraw the Act, why?
See how they want to protect people with black money. If India is corrupt it is because we have designed our legal system to protect and encourage the corrupt. Everybody says do according to the law, take action within the law.
I support Tehelka's method. Because that's the way corrupt people can be trapped. Otherwise, who allows you to shoot when they are taking money? The middlemen's names are not written in files. Though in defence deals we have examined the files. Our chief technical examiner's division -- including a dozen people -- examined the files. Even if the perfect murder takes place, the truth can't remain hidden.
There was no time limit, I could have gone on and on like others but I finished the job quickly. My report was ready when this scandal broke.

Effective People

Wednesday, December 23, 2015

N.Vittal: Unedited material collected for Effective People by Prof TV Rao

5)

Ex-CVC N Vittal praises Narendra Modi for 'unpopular decisions'

http://archive.indianexpress.com/news/excvc-n-vittal-praises-narendra-modi-for-unpopular-decisions/1010792/

The Rediff Interview/ Central Vigilance Commissioner N Vittal

'India's security has been compromised'

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