If true, this is going to be a tipping point in the crony capitalism nature of our political economy. NO COUNTRY FOR HONEST OFFICERS I am submitting the following with considerable anguish and pain....But such is the gravity of the situation that I make myself bold to do so, and entreat your kind indulgence. K M Abraham of SEBI wrote to the Prime Minister. If Abraham wanted, he would have the world at his call. He was one of the best qualified men - an IIT from Kanpur, a CFA(USA) and A Phd from University of Michigan. It is our fortune that he chose to serve India. Once, the SC order is implemented and SAHARAs cough up, It would reduce the Current account deficit by about 30000 Crores. That is 0.6% of GDP, the target set by Chidambaram. Alternatively, it can build 6 million homes for the homeless. What did we give him in return? Read on! The saga of taking SAHARA to Tihar is strewn with pain, harassment and demotion of an honest officer. India created more protective layers around the guilty with no protection for its honest officers. Left with little choice many officers give in and become a part of the corroded system.The few who defy and stand up, suffer. Abraham was a rarity, not the kind that would give in. And while Abraham was fighting to bring Sahara to book, our great system - represented by Ministry of Law, BSE, Ministry of Finance, Income Tax department and even the PMO, were busy otherwise. His resolve was unparalleled. So was his detail. Read the path that this honest SEBI officer had to take: - as whole time member, SEBI, Abraham was hot on the trail of Sahara, Reliance, MCX, BoR, ADAG - Later, Each of them has been proven guilty on various charges. - Finance ministry, headed by Pranab Mukherjee gets interested. They pull strings, through UK Sinha, the chairman, SEBI. Omita Paul, Secretary in MoF tries to control the outcome of these cases. - Abraham doesnt give in and continues on his mission, doggedly and meticulously, buildings a case that will stand judicial scrutiny. - Income Tax Department, under instructions of MoF starts a roving enquiry AGAINST Abraham. The allegation is that Abraham and one more SEBI member bought a flat at below the market price with unknown sources of funding (Later proved as funded from a Loan). SEBI had already investigated the same and termed them as baseless charges, made by anonymous complaints. - The Bombay Stock Exchange gives a letter that suggests that OFCDs cannot be listed, thus trying to buttress the SAHARA claim and against the jurisdiction of SEBI to investigate the matter. - The ministry of corporate affairs,(MCA) headed by Salman Khurshid takes a stand that unlisted entities like Sahara are controlled by MCA and not SEBI. SAHARA desperately wanted to move away from SEBI and report to MCA under Salman Khurshid. - KM Abraham, under tremendous pressure, personally and professionally, writes to the Prime Minister. He says The frightening realization that dawned on me from all this was that at the highest levels in government, there seemed to be an awareness of misuse of power by the office of the finance minister. But there was a clear unwillingness or reluctance to prevent it or take any remedial action. It was then I decided to address (the Prime Minister)… because I knew that I had nowhere else to go.”. - I have attempted to place before the honorable prime minister only those facts that i Myself know with certitude, which are first hand and not hearsay in nature. I am willing to testify to the above facts, under oath in any appropriate judicial or administrative forum, should I called to do so. Writes Abraham. - The PMO acts very callously, against all whistleblower norms. They pass the letter to Department of Economic Affairs, a wing of the Finance ministry. They also leak it to the media. Later, TKA NAIR, a senior officer in PMO advises Abraham to meet Omita Paul in MoF, the very person against whom he has complained. - A whisper campaign starts against Abrahim that he has lost his mental balance and is imagining things. - KM Abraham passes the order against SAHARA on 23rd June 2011. It was a water tight case, with every argument of Sahara, BSE, MCA, law Ministry demolished systematically. SAT and Supreme Court could go no further than his order to bring sahara to pay up. - KM Abraham transferred out of SEBI in July 2011 and repatriated to his home cadre - Kerala, one month after he passed the Sahara order. This was despite a SEBI board recommendation for extension of services which the MoF rejected. Currently, KM Abraham is serving as additional chief secretary, Government of Kerala. And SEBI and India have lost him! IMPORTANT: If you are sharing this post, please make sure the write up comes with the attachment. The letter, by itself will not explain the detail.
Posted on: Mon, 10 Mar 2014 10:59:51 +0000
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