Forget corruption go after fraud

As published in Oheraldo on 25th July 2011

Recently in an interview to Heraldo, our beloved Chief Minister said that corruption is everywhere, the tone seemed to suggest that it is a way of life and nothing could be done about it. Therefore saying that GIDC is corrupt and Alexyz famous cartoon “GID Cor(rupt)poration” should be ignored. Why single out one entity.

The problem with corruption is by nature it is secretive. The giver and receiver would like to keep the transaction under wraps. One major reason is that under the current laws, if detected both parties are liable to punishment. The other reason is that usually the consideration for favours granted is CASH which is very difficult to prove. Speaking at a function, Mr Narayan Murthy suggested making bribe giving legal, he feels that this way the giver can subsequently complain without falling into trouble as accepting bribes would still be illegal.

In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The Indian Penal Code defines fraudulent actions under Sec 25. “A person is said to do a thing fraudulently if he does that thing with intent to defraud but not otherwise”

Elements of fraud: Common law fraud has nine elements:

1) a representation of an existing fact;

2) its materiality;

3) its falsity;

4) the some GIDC employee’s knowledge of its falsity;

5) the some GIDC employee’s intent that it shall be acted upon by the GIDC;

6) GIDC’s ignorance of its falsity;

7) GIDC’s reliance on the truth of the representation;

8) GIDC’s right to rely upon it; and

9) consequent damages suffered by GIDC.

Even if we consider just the 35000 sq mts involved in the SK Desai/Mehul Developers Pvt Ltd/ Watson case, all the above elements are applicable. This case represents not just one fraudulent act but a series of acts. There are many other similar cases.

The other sections under the Indian Penal Code which are breached are

IPC: Section 168. Public servant unlawfully engaging in trade

The punishment for this is jail or fine or both. GIDC officials are public servants as the order to suspend one official was issued under Central Civil Services (Classification, Control & Appeal) Rules 1965. They sure do not act like that.

IPC: Section 169. Public servant unlawfully buying or bidding for property

This covers buying or bidding in the name of another and punishment includes jail, fine and confiscation of property.

The Government of Goa responded to calls for action into the affairs of GIDC by appointing a TASK FORCE to study unutilised or under utilized lands. This was mainly because the fraudsters were holding lands to transfer to parties willing to pay the unofficial premium upto Rs 3000/- per square meter.

The MD of GIDC replied to a report of a joint committee of the task force with a document wherein he has misrepresented the facts atleast in the case of Mehul Developers. While he maintains in Feb 11, that Mehul developers was under construction ( TF report is unutilized), a reply tabled in the Goa State Assembly in Mar 11, states that the Mehul plot was transferred in Nov 10.

Under the Indian Penal code "Misrepresentation" is also an offence, and I am sure that under the “Conduct of Service” rules which govern government employees there is a breach. Lying to a public committee in writing should have its penalties, the least of which should be sacking.

In summary, Mr. Chief Minister please do not waste no time and begin action under the Indian Penal Code and bring the culprits to book for fraudulent acts which have resulted in loss to the exchequer and a created a huge dent in the image of the State.